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Speech of Mr. Tsvetan Simeonov, President of BCCI during the meeting of the Committee for Amendment of the Constitution

 The numbers specified in the draft bill would be much more satisfactory if there was a 35% limit to the redistributive role of the budget, as stipulated in the economic programme of GERB Party.

Mr. Ivan Iskrov helped me with his statement that any deficit stipulated as a possibility would be unacceptable for the business. We would like the state of the budget to remain as close to balanced as possible in the future. I understand the hardships and after hearing the discussion here, I realize that probably these higher numbers were specified because of the intention to search a consensus or wider support for the suggestion.

In the process of preparation of the draft bill we had the chance to express our position. We held meetings during which we expressed our support for such move of the National Assembly. Whether there was a public discussion? I believe yes, there was. The issues related to the 35% limit of the redistributive role of the budget were discussed at BCCI during out General Assembly and we express the opinion of 52 thousand companies which produce more than half of Bulgaria’s GDP and over 70% of the country’s foreign trade turnover. Those issues were discussed with the participation of the 28 Regional Chambers of Commerce and Industry in all regions of the country and with over 100 sectorial organizations. However, these are only BCCI’s estimations. Probably, the numbers would double after the data of the other employers’ organizations are announced. 

Mr. Aliosman Imamov asked what would happen to people’s incomes and I will try to give a clear answer. What happened during the crisis with the incomes of Bulgarian citizens is evident from the statistics in the private sector. While the trade unions and the employers’ organizations argued what to take into account as recommendable – inflation or the growth of production, in the last 5 or 6 years salaries in the private sector grew more than inflation and growth of production together. I guarantee you that this will happen in the future to salaries in the private sector. Why? Because they are the so-called “living” companies and they are the companies that withstand competition.

BCCI and its members will not agree with social measures which have not taken into consideration the higher labour productivity (with the exception of social measures for the disabled or the pensioners with the lowest pensions), because it is a matter of budget potential. We are content that in order to receive unemployment benefits the workers were required to go and work for a few days if they are able to work. There is no shameful work and the growth of incomes, it must be clear, will be supported by us only when it is bound with higher labour productivity.
The question raised by Mr. Stoyan Ovcharov why the limit wasn’t accepted earlier is quite reasonable.

We would have been glad if it had been adopted parallel to the introduction of the 10% flat personal income tax and corporate tax. This is what the ruling party tries to pass now. And what would have happened? We would have had less administration, and now we would be very pleased because anyone would spend as much as they earn. 
To answer the question – why should this proposal be adopted by an amendment of the Constitution and not some other act? Because of the bitter experience we have with the Act Restricting Administrative Regulation and Administrative Control over Economic Activity.  We saw that this excellent law of key importance doesn’t work because its level is not good enough. Of course, not everything can be included in the texts of the Constitution. 
Why should defense require a qualified majority of two-thirds? For us, for the business, low taxes are just as important as stability of the international agreements is important for any state.
 
Esteemed Members of Parliament, one of the positive achievements with which the Triple Coalition will remain in history is precisely the 10% tax rates which were adopted by them, because they are an undeniable advantage.
I would only like to add that we expect that you will guarantee a brighter future and a more secure existence to the product of your governance. 

28.06.2011

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