NEWS

Rosen Plevneliev: European politicians will not produce growth while postponing important structural reforms

European politicians will not produce growth while postponing important structural reforms and appropriate “growth” must be filled out with substance, President Rosen Plevneliev said today. The President today opened at the University of National and World Economy a conference entitled “Preconditions and prospects for sustainable economic growth in Bulgaria and Europe”. “I do not believe in growth achieved at the expense of new debt to be paid by the next generation but in sustainable growth based on reforms for competitiveness, productivity, a better business environment and good global positioning,” the President told participants in the discussion. According to the Head of State, fiscal discipline is important but not a sufficient condition for sustainable economic growth. The President called for honesty from politicians about problems and solutions to overcome the current crisis, which according to the head of state is not only the worst since World War 2, but also the most unpredictable.

According to Rosen Plevneliev, decisions that achieve sustainable economic growth are those on investment in education, support for small and medium enterprises and the creation of working public institutions as a platform for business development.

On education, the President highlighted the necessity of good practical skills relevant to the requirements of business as well as introducing the concept of lifelong learning. Universities have a leading role in shaping an entrepreneurial culture among young people and Bulgarian universities already have moved in this direction, the President said. He said that universities have the potential to be not only national but also regional players in the field of education, a step towards good traditions and quality.

More than 99 per cent of the national economy and more than two-thirds of the jobs in Bulgaria are created by small and medium enterprises and support for them is always a factor in economic development. The President called for economic development in Bulgaria based on innovative and export-oriented SMEs. Technology parks and industrial areas are well functioning tools for economic development and local authorities in Bulgaria must deepen their integrated development plans and construction of such centres, the President told participants in the discussion.

Bulgaria should not seek “cheap money”, the conference was told by the Director of the Directorate General “Economic and Financial Affairs” at the European Commission, Istvan Szekely. He said the country should make optimal use of human resources and work towards better conditions for attracting foreign investors by reducing the cost of doing business. According to Mr Szekely, it is important for Bulgaria to attract both foreign investment and establish systems for knowledge transfer. He noted that the country is fiscally disciplined and managed to stabilize the macroeconomic indicators.

The University Forum was organized jointly with the Presidential Administration and attracted economic analysts and experts from the European Commission, University of National and World Economy, Economic Institute at the Bulgarian Academy of Sciences, Centre for Liberal Strategies, Center for Economic Development, the Institute for Market Economics, Center for Economic Strategies and Competitiveness, "Industry Watch", Center for the Study of Democracy and the Institute for Economic Policy.