Controlling public spending, avoiding budget deficits and a mild income policy will stabilise prices after Bulgaria joins the EU, Prime Minister Sergei Stanishev promised a group of business representatives October 18.

Stanishev was speaking at a conference entitled "60 Days before the EU Membership: What to Expect, What to Do" organised by Bulgarian-language weekly Kapital and German-language business daily Handelsblatt in partnership with the Confederation of Employers and Industrialists in Bulgaria (CEIB).

Attendees at the event included Swedish foreign minister Carl Bildt, CEIB Chair Ivo Prokopiev and the head of Bulgaria's team at the DG Enlargement of the EC, Bridget Czarnota.

Stanishev vowed to continue what he described as the Government's package of reforms.

"The Government is well aware that in the modern competitive world, once you achieved a goal you have to set yourself another one, more ambitious, and to pursue it," Stanishev said.

The unemployment rate is falling and foreign investments in the country reached 700 million euro for the first seven months of the year, but financial stability had to continue in order for Bulgaria to avoid events like those in Hungary, Stanishev said.

It is equally wrong to think that, on joining the EU, Bulgaria "will receive a gold key that unlocks a piggy bank full of 11 billion euro or that the accession will aggravate our standard of living, which will result in a shocking rise in prices and will increase the inflation rate," he said.

There were no economic grounds for these fears, Stanishev noted.

Inflation in Bulgaria is going to remain at a low rate, he said. He  vowed to impose sanctions on anyone who attempts to speculate against the interest of citizens after EU accession.

Business circles have shown a high level of trust in the Government's economic policy, Stanishev said. Business has warmly welcomed the reduction of the corporate tax by 10 per cent, for example, he said.

"Social payments were cut by six percentage points this year and if possible, depending on the budget revenues, they will be further reduced next year as well," Stanishev said.

He announced that the Ministry of Economy and Energy is carrying out a comprehensive analysis of the licence regimes and will find reasonable solutions as to how to remove unnecessary hindrances for entrepreneurs.

Stanishev used the forum to repeat the priorities of the country for the next seven years, which have been formulated in the National Strategic Reference Framework. The priorities include: infrastructure improvement, encouragement of entrepreneurs, favourable business environment, and support for more balanced regional development.
The Government was not after economic growth for its own sake Stanishev said. "We are facing a serious challenge to improve the educational system, modernise it, and ensure the application of EU practices for life-long training and retraining," Stanishev said.

Later on, speaking to Bulgarian National Television, Czernota said Bulgaria and the European Commission have to convince the world that Bulgarian citizens were hardworking and honest.

"On January 1 2007 Bulgaria will enter the zone of law and this is a great advantage for every European citizen," Czernota said. "I am happy for all Bulgarians. They deserve their place in the European family.  "