If politicians and unions don't come to their senses, we're in for a deja vu of the 2009 crisis. This was written on Facebook by the entrepreneur and owner of FC “Ludogorets“ Kiril Domuschiev. According to him, our country is the leader in the EU in public administration maintenance costs, with the public sector already paying more than the private sector and will soon lay off 600,000 people.
“He sucks people and capital out of productive business, instead of creating an environment for the development of real production and value-added services. However, behind the officials stands the “bottomless“ state budget, and behind the businessman – danger of bankruptcy. The budget of the National Social Security Institute proposes a sudden increase in insurance by 2%, despite promises in the social dialogue that this measure will be considered in years“, the businessman commented.
According to him, Bulgaria may be an ancient country, but for its thousand-year history it can gather no more than 70 years of real capitalism “Trade unionists and left-wing politicians compare us with Italy, Sweden and Germany, but they have not read enough history – capitalism has existed in Italy since the times of Ancient Rome, when the first banks – argentaria and mensaria were born. Sweden and Germany started working with steam engines as early as the early 18th century and began the industrial revolution only a decade after Britain, he adds.
Domuschiev believes that in order to avoid the crisis, a complete freeze on incomes and appointments in the public sector is necessary until the budget deficit, which generates inflation, is brought under control.
He is adamant that civil servants should also pay social security contributions. “This was a bonus for them when their remuneration was much lower than salaries in the private sector, and now it is the other way around“, the entrepreneur specifies.
“Social payments such as pensions, maternity and unfairly low remuneration in certain niches in healthcare should be indexed to inflation, with revenues being found from improved collection and revision of outdated unfair rates – for example, in the real estate sector“, he also points out.