Trade & Investment Newsletter 9 - 15 December 2024
BULTISAD-Bulgar-Türk Ticaret ve Sanayi Odas? -Bulgarian-Turkish Chamber of Commerce
Enhancing trade and investment relations between Turkiye and Bulgaria
ECONOMY
Bulgaria, Malta Sign New Double Taxation Agreement
Bulgaria’s caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova signed a Double Taxation Agreement between Bulgaria and Malta in Brussels on Tuesday, the Finance Ministry’s press service said. The agreement was signed on behalf of Malta by the country's Finance and Employment Minister, Clyde Caruana.
Bulgaria MOF Posts Draft Bill on 2025 State Budget
The Bulgarian ministry of finance Dec. 9 posted online a draft bill on the 2025 state budget. The draft bill includes measures that would: 1)impose a tax on underground resource extraction; 2) increase the excise tax rate on beer and beer produced by independent small breweries; 3) exempt interest upon principal payments on public receivables due and payable by Dec. 31, 2023 and on public receivables due for local taxes or municipal waste fees for periods until Dec.31; 2024.
Bulgaria Supports Main Principles of Reform Package, Simplification of Customs Procedures
Bulgaria supports the main principles of the reform package and the proposals to simplify customs procedures, which will facilitate the work of traders and customs authorities as well as consumers, said caretaker Deputy Prime Minister and Minister of Finance Lyudmila Petkova, who participated in the regular meeting of the EU Economic and Financial Affairs Council (ECOFIN), held on Tuesday in Brussels, the Ministry of Finance said on its website.
Minimum Wage In Bulgaria For 2025: What Businesses Need To Know
Starting January 1, 2025, the minimum wage in Bulgaria will increase to BGN 1,077, up BGN 144 (15.4%) from the 2024 rate of BGN 933. This update, announced in State Gazette No. 359 on October 23, 2024, will affect businesses and employees across the country.
Bulgaria’s Economic Growth and Eurozone Integration
Bulgaria is on the brink of significant economic transformation as it prepares to meet the final criteria for joining the Eurozone by January 2026. With forecasts indicating a steady economic growth trajectory and a decrease in inflation, the country is poised to enhance its financial stability and integration within the European Union.
Bulgaria's construction output up 6.3% y/y in Oct
Bulgaria's construction output climbed by an annual 6.3% in October as all sectors registered growth, the statistical office said on Tuesday, quoting preliminary data.
In September, the country's construction production increased by a revised 5.3% year-on-year.
Specialised construction activities output leapt by 8.9% on the year in October, while civil engineering and building construction production added 7.1% and 3.5%, respectively, the National Statistical Institute (NSI) said in a regular report.
Bulgaria's industrial output slips 1.6% y/y in Oct
Bulgaria's industrial production index fell by 1.6% year-on-year in October after adding a revised 1.2% in September, the statistical office said on Tuesday, citing preliminary and seasonally-adjusted data. The sharpest annual decline was recorded by the mining and quarrying industry, at 10%, while electricity, gas, steam and air conditioning supply posted a rise of 7.9% on the year, the National Statistical Office (NSI) said in a monthly report.
Fraport Twin Star to put 50 mln euro into Burgas Airport runway revamp
Fraport Twin Star Airport Management, operator of Bulgaria's coastal airports in Varna and Burgas, said on Thursday that it will invest some 50 million euro ($52.5 million) to renovate the runway at Burgas Airport. The investment will be directed towards rehabilitation of the runway pavement, the surrounding areas, the drainage system and installation of a new lighting system, Fraport Twin Star Airport Management, majority-owned by Germany's Fraport Group, said in a press release.
Fraport Twin Star to put 50 mln euro into Burgas Airport runway revamp
December 12 (SeeNews) - Fraport Twin Star Airport Management, operator of Bulgaria's coastal airports in Varna and Burgas, said on Thursday that it will invest some 50 million euro ($52.5 million) to renovate the runway at Burgas Airport. The investment will be directed towards rehabilitation of the runway pavement, the surrounding areas, the drainage system and installation of a new lighting system, Fraport Twin Star Airport Management, majority-owned by Germany's Fraport Group, said in a press release.
FINANCE
EBRD supports Bulgaria’s Postbank with EUR 135 million green portfolio guarantee facility
The European Bank for Reconstruction and Development (EBRD) has announced a significant partnership with Eurobank Bulgaria AD (operating as Postbank) to provide a total of €135 million in guarantees under the European Union’s InvestEU programme.
Pension Increase Effective July 1, 2025: A Bulgarian Update
Mid-level pensions in Bulgaria are projected to increase by 8-9% starting July 1st, following Switzerland’s rule. The average monthly pension is expected to reach around 976 BGN, according to the acting director of the National Social Security Institute, Vesela Nacheva-Karaivanova, who also revealed that the minimum wage and insurable income will both be set at 1077 BGN, with the maximum insurable income being 4130 BGN. Meanwhile, Christmas bonuses will be granted to the most vulnerable pensioners.
ENERGY
Head of Association of Traders with Energy in Bulgaria: Energy Market Should Be Liberalized When Bulgaria Is Ready
The Association of Traders with Energy in Bulgaria (ATEB) believes that while liberalization is the right way to develop the energy market, the country is not ready for it, which is why the association proposes to have a working group set up with all stakeholders present in it, said ATEB Deputy Chair Valery Drenikov during the fourth Powers Summit forum in Sofia Tech Park on Tuesday.
Bulgaria pushes for full liberalization of electricity market
At the Powers Summit in Sofia, Bulgarian caretaker Minister of Energy, Vladimir Malinov, highlighted the need for energy to be treated as an economic sector rather than a tool for social policy. According to Malinov, recognizing this distinction would be a crucial step toward facilitating the liberalization of the electricity market, particularly for household consumers.
If Gazprom does not pay, Bulgaria will stop Russian gas transit / Day
“It is a bilateral relationship based on a contract. [Bulgārijas valsts gāzes tranzīta kompānija] ”Bulgartransgaz” will strictly observe them and will not allow the transit of natural gas if the service is not paid,” said the minister. Malinov admitted that the Russian company “Gazprom Export“, which has reserved supply capacity for the extension of the Turkish Stream pipeline through Bulgaria and made payments through “Gazprombank”, will have to find a solution if it wants to continue receiving the service.
Bulgaria: Energy Ministry compensates high electricity costs with over 143 million euros
The Ministry of Energy has reported that nearly 143 million euros have been paid out from the Electricity System Security Fund to cover high electricity costs between the beginning of the year and 3 December. Of this amount, just over 142 million euros were paid from 1 July to 3 December, while the scheme`s total budget stands at 281 million euros.
领英推荐
Potential Electricity Price Hike During Winter Season
The impending heating season may bring an increase in electricity prices in Bulgaria, according to Serving Energy Minister Vladimir Malinov. While he didn’t provide a specific forecast, he noted that the increased consumption by residential users during the winter months is expected to significantly boost the consumption quotas set by the state, as both NERP (National Energy Regulatory Commission) and the Ministry of Energy anticipate.
Shell to explore for oil, gas in Bulgarian Black Sea offshore block
December 11 (SeeNews) - Bulgaria has selected Dutch-based Shell Exploration and Production, part of UK-based oil and gas company Shell, to explore for oil and natural gas in offshore Block 1-26 Khan Tervel, in the country's exclusive economic zone in the Black Sea, the energy ministry said on Wednesday.
INNOVATION & TECHNOLOGY
In 2024 Bulgaria Startups Raised Half of 2023’s Total
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Bulgaria’s AI and tech ecosystem is undergoing rapid transformation, emerging as a significant player within Central and Eastern Europe. With increasing investment, the development of pioneering companies, and organized international outreach, Bulgaria is gaining recognition for its contributions to AI and deep tech innovation. However, challenges remain in aligning the ecosystem’s growth with the abundant venture capital now available.
The IT Sector in Bulgaria: Which Specialists Earn 11,000 BGN Monthly
In the IT sector, the specialists commanding the highest monthly salaries are those focused on DevOps and Infrastructure, including Database Engineers, Cybersecurity specialists, and System Administrators. According to data from the platform Dev.bg, Senior Level professionals with over 5 years of experience can earn between 7043 BGN – 11 098 BGN monthly.
Bulgaria Remains "Emerging Innovator" by EU Standards, Positive Signs Discernible – Report
Although Bulgaria is in the group of emerging innovators according to the European Innovation Scoreboard 2024, with an innovation index not showing much progress since 2017, the country has witnessed positive developments in innovation and entrepreneurship, according to the most recent Innovation.bg report published by the Applied Research and Communications Fund. The report was unveiled during the 20th National Innovation Forum in Sofia on Tuesday.
EU R&D spending barely up in 2023, at 2.2 per cent of GDP
Countries with the lowest spending were Romania, Malta, Cyprus and Bulgaria
EU spending on R&D was just 2.2 per cent of GDP in 2023, barely up from 2.21 per cent the previous year, despite the bloc having a longstanding target of 3 per cent, which it recently reiterated.
Presenting the latest data on 11 December, the EU statistics agency Eurostat pointed out that spending intensity hit 2.28 per cent of GDP in 2020, then fell as GDP rebounded because the Covid-19 pandemic eased.
SOCIAL
Demographer: Several Bulgarian Problems Need to Be Solved to Tackle Demographic Crisis, Birth Rate Is Not among Them
Bulgaria has four problems it needs to solve if it wants to tackle the demographic crisis, Georgi Bardarov, demographer and Deputy Dean of the Geology and Geography Faculty of Sofia University said here Tuesday. He was speaking during the fourth edition of the Powers Summit, which brings together government representatives, political forces and business in a discussion on the main challenges and opportunities for Bulgaria.
Bulgaria's Aging Workforce: Over 60% of 60-64 Year-Olds Remain Employed
In?Bulgaria, more than 60% of people aged 60 to 64 remain active in the?labor?market, a figure that surpasses the European Union average. This places?Bulgaria?11th out of the 27 EU member states. According to a recent report by Allianz Trade, this high level of workforce participation in the older age group is linked to the country’s rising retirement age.
13% of Retirees Kept Working in EU, 16.7% in Bulgaria in 2023
In 2023, the majority of pensioners stopped working (64.7%) or did not work at all (22.4%), while only 13% have continued working, according to Eurostat's EU Labour Force Survey (EU-LFS), published on the European statistics agency's website on Monday.
The highest proportion of people who continued working was in the Baltic countries - Estonia (54.9%), Latvia (44.2%) and Lithuania (43.7%) - while the lowest levels were recorded in Romania (1.7%), Greece (4.2%) and Spain (4.9%).
For Bulgaria, the data shows that 16.7% of people who had already retired remained in the labour market.
https://www.bta.bg/en/news/economy/796241-13-of-retirees-kept-working-in-eu-16-7-in-bulgaria-in-2023
TOURISM
From New Travel Rules to Golden Visas & Schengen Expansion: Key Changes Coming to EU in 2025
While 2024 was filled with many developments and important decisions impacting both foreigners reaching the bloc and citizens of the EU, the next year is set to have new advancements, rules, and adjustments.
From the expansion of?the Schengen Area?to the launch of two new border systems, changes will not be missed in 2025.
DEFENCE & INTERNATIONAL RELATIONS
NATO Secretary General Mark Rutte to Visit Bulgaria Amid Strengthened Defense Efforts
NATO?Secretary General Mark?Rutte?will visit?Bulgaria?on December 19, 2024, as announced by the Ministry of Defense. During his visit, he will inspect the?Novo Selo?training ground and meet with the political and military leadership of the Ministry of Defense. The visit includes a review of the activities of the multinational battle group stationed in?Bulgaria, for which Italy serves as the framework country. In the late afternoon, Mark?Rutte?and Bulgarian Defense Minister Atanas Zapryanov are expected to address media representatives at Novo Selo.
Official: Romania & Bulgaria Become Full Schengen Area Members on January 1, 2025
The European Union ministers have officially approved today, December 12, the land border accession of Romania and Bulgaria to the Schengen Zone from January 1, 2025.
Hungary, as the holder of the presidency of the Council of the European Union, which often considered the inclusion of these two countries among the main priorities of this country, said the decision is a great victory for Bulgaria, Romania and all of Europe.
https://schengen.news/official-romania-bulgaria-become-full-schengen-area-members-on-january-1-2025/