BSP's project for the parameters of social and economic policies

Limitations:
1. Preservation of the currency board and social and economic stability.
2. Continuation of the co-operation with the IMF.
3. Economic development corresponding to the criteria of the European monetary union.
4. Implementation of the agreements with the EU.

Goals of the BSP social and economic policies:
1. Social and economic development aiming at reaching the EU standards.
2. Providing of full employment of the labour force, in accordance with the Lisbon strategy.
3. Growth of actual incomes.
4. Reaching and maintaining the European educational standards, in accordance with the agreements with the EU.
5. Guaranteed and accessible health care.
6. Dynamic development of the regions and overcoming of the disproportionate development of the various regions of the country.

Socially responsible government: Policies providing for the social development aiming at reaching the EU living standards.

Income policies: The main goal is to reach the average income in the EU.
1. Yearly increase of income twice a year in order to keep up with the GDP growth and inflation.
2. Introduction (by the end of the term) of family income taxation.
3. Considerable increase of the incomes of the low-income groups through tying of the social pension, the guaranteed minimum income and the minimum wage, to the official EU standards for threshold of poverty (2.51 euro per day).
4. Maximum transformation of social aid into social investments.
5. Single considerable increase of all wages in the country upon Bulgaria's entering the EU, (debatable).

New employment policies: In the period between 2005 and 2009 at least 240 000 jobs must be opened, which would bring the unemployment rate down to 10 per cent.

Education and sciences: The goal of the BSP is an economy and society based on knowledge.
Secondary education: Paid by the state, mandatory education till 16 years of age. Investment in children up to 16 years of age: free textbooks, free breakfast, transport subsidies, guaranteed internet access and restoration of the system for vacations and sports. Restoration of school health care.
Introduction of mandatory national school-leaving exams for those who started school in 2006.
Higher education: Real student credits through a special state fund (for at least 10 per cent of university students). Credits and scholarships for Bulgarian students abroad.
Demographic policies: For all children up until six years of age, whose families have an income equal to the minimum wage, the state would fully pay kindergarten expenses.

Health care policies: BSP's goal is to provide guaranteed and accessible health care. Guaranteed minimum package of health services for every person with an insurance. Each patient has the right to choose a health care facility, two GPs and several specialists. Consumer taxes will be removed.

Policies for accelerated economic development and economic priorities:
1. IT society.
2. Transport infrastructure.
3. Tourism.
4. Agriculture.

Sources of growth:
1. The creation of most favourable business climate: zero tax for re-investments
2. Increase of investment activity. At least 25-30 per cent of the GDP would go for investments. Attraction of considerable foreign investments.
3. Stimulation and growth of export.

Income management policies:
1. Reduction of tax burden. Decrease of the VAT in the second half of BSP's term. Differentiated VAT for medicines, bread and milk.
2. Zero tax for reinvested profits.
3. Steep tax scale for very big incomes and property.
4. The introduction of family income taxation.

UDF Economic Programme

AT a meeting with the members of the Bulgarian International Business Association (BIBA) on March 30, the leader of the Union of Democratic Forces (UDF) Nadezhda Mihailova presented the goals, principles and priorities of the economic programme of the United Democratic Forces (UtDF) coalition.
"The future government of the UtDF must provide more economic freedom in order to expand the options for choice for entrepreneurial people," Mihailova said.
According to her, the number-one priority for the parties within the coalition is the accelerating of the economic development of the country, which is the only way towards higher income and higher living standards for the Bulgarian people.
Fast economic growth is a very effective social policy because it would bring lower unemployment rates and higher incomes.
In her speech, Mihailova outlined 10 main parameters of the economic policy of the future UtDF government.
1. Keeping the currency board until the expected entering of Bulgaria into the eurozone in 2009 at the current fixed rate leva-euro. The goal of the UtDF is to keep the predictability of the economic policy of the government.
2. Reduction of the tax and social insurance burden. The UtDF suggests considerable reduction of income tax and social and health insurance payments. This would: increase the stimuli for labour, enterprise, savings and investment, decrease the share of the shadow economy and increase average incomes.
3. Optimisation of state spending. The considerable reduction of state spending is both necessary and possible. There is also need for more efficient use of the state budget. This could be achieved through the decrease of inefficient state spending, reduction of bureaucracy and spending on budget-dependent structures, the increase of the efficiency of state-owned enterprises and reduction of state subsidies for them.
4. Transparent privatisation. Privatisation through tender or competition provides for competition among the participants and the reaching of the best price. On the other hand, transparency in such procedures eliminates corruption.
5. Increased share of the private pension system. The higher a person's pension, the larger the share of pension insurance goes towards an account in a private fund.
6. Liberalisation and breaking of the monopolies. Coalition UtDF suggests fast and efficient re-structuring, de-monopolising and privatisation (or concession) of all remaining state monopolies in the infrastructure and the services sector, so that at the end of the term of UtDF there would be a competitive market environment.
7. Judiciary reform.
8. Improvement of the business environment. The considerable reduction of licence regimes is necessary, as well as the introduction of electronic government and fast and efficient service, reduction of the procedures and time necessary to communicate with the state administration.
9. Improvement of health care and education.
10. Fiscal decentralisation. The coalition UtDF coalition envisages increasing opportunities for local authorities to define local taxes and spending.