"We have data on specific state-owned enterprises with a significantly inflated staff and an unclear organizational structure. We are ready to provide them to the competent institutions for objective analysis and to take measures to increase efficiency in the public sector". This is stated by the Bulgarian Association of Electrical Engineering and Electronics (BASEL). In an official letter to the Council of Ministers and the Ministry of Finance, the organization declares itself against the increase in social security contributions and some taxes in the draft budget for 2026 and supports the position of the KRIB to discipline public finances and limit inefficient state spending.
The planned sudden increase in social security contributions will in practice cover the inflated salary costs of civil servants in the electricity sector. Effective business will “endure” the inefficient state administration. This is a blow primarily against business in Bulgaria. The draft budget stimulates the shadow economy and hinders new investments.
“The electrical industry is the largest sectoral exporter in Bulgaria. It creates significant added value and high-tech jobs. However, enterprises in this industry are daily confronted with the consequences of the growing administration, the unpredictable regulatory environment and the increasing insurance burden. High salaries in state energy organizations and the bloated state have long been a known problem. Instead of public resources supporting industry, education and innovation, an increasing part of them will be allocated to structures with low efficiency and limited contribution to economic development“, states Dr. Eng. Dimitar Beleliev, Chairman of the Board of BASEL.
BASEL appeals for a dialogue between the state, business and social partners, since “Bulgaria's sustainable growth can only be achieved through efficiency, investments and support for the manufacturing sector“.
The Bulgarian Association of Electrical Engineering and Electronics (BASEL) was founded in 1994. It is a national representative organization of the “Electrical Engineering and Electronics“ industry. Its members are 115 Bulgarian and foreign companies with manufacturing, engineering, trade, consulting and development activities. BASEL members are manufacturers of electrical and electronic products, companies for repair and construction of electrical installations, supply of components, etc. with a total annual turnover of over 1 billion euros.
In 2024, for the 9th consecutive year (excluding 2022), the electrical industry was the largest contributor to Bulgaria's exports, generating exports of around 4 billion euros by the end of October. Around 1,300 companies with over 57,000 employees work in the electrical engineering and electronics sector.