The Government has worked and will continue to work to solve the problems of Bulgaria, Prime Minister Simeon Saxe-Coburg said in his long-awaited address to the nation Tuesday evening.

His speech, aired live on Bulgarian National Television and Bulgarian National Radio, was prepared on the basis of reports by the ministries on the Cabinet's first year in office.

Highlighting the achievements of the Government, Saxe-Coburg said that corruption has been reduced considerably, the tax burden has been alleviated and more farmland has been sown.

"Unemployment still remains one of the hardest social problems," the prime minister said. He noted that for a year the Cabinet managed to reduce the number of unemployed people by 4.8 per cent, despite the smaller volume of investment due to the unfavourable international conditions.

"By the three-fold increase in budget allocations we created conditions for an active employment, training and re-training policy for the unemployed," he said, adding that the Government has changed its employment policy. The shift was from providing social benefits to opening new jobs through economic growth.

The next emphasis in the premier's address was the achievements in the sphere of business and the economy. He said that his Cabinet abolished one-fifth of the licensing regulations and eased one-third of them thus ensuring the necessary freedom to business in Bulgaria. This, he said, led to considerable reduction of corruption risk.

"We decreased the tax burden," he said, but did not mention concrete reduced taxes.

He also emphasised the positive statistical indicators for debt reduction, fiscal reserve growth, and GDP growth in the first quarter of 2002.

Saxe-Coburg assured the nation that the problem with the fate of important companies, such as Chimco urea maker, Balkancar and Plama oil refinery, would not be overlooked. He also made commitments for the implementation of major infrastructure projects as the Bourgas-Alexandroupolis oil pipeline, the Sofia Airport, the second bridge over the Danube, the Port of Bourgas and the Upper Arda hydropower complex.

The modernisation of agriculture and the processing industries was another priority of the ruling majority.

According to Saxe-Coburg the statehood will be strengthened by a clearer, more efficient and faster justice process.

In his address, the prime minister also underlined the successful participation of the Bulgarian army in international missions and said that it has proven to be a worthy NATO partner.