Higher pensions and lower taxes from the beginning of 2007 were promised by Prime Minister Sergei Stanishev on June 5 after a session of the Council of the Ruling Coalition. Stanishev, leader of the Bulgarian Socialist Party (BSP), met with Simeon Saxe-Coburg, leader of National Movement Simeon II (NMSII), and Ahmed Dogan, leader of Movement for Rights and Freedoms.

The BSP leader discussed the macro-framework of Budget 2007 and the action plan after the European Commission’s May monitoring report on Bulgaria’s readiness to join the European Union on January 1 2007.

Speaking at the news conference after the meeting, Stanishev said that the monthly non-taxable income will be increased from 160 to 200 leva as of 2007. The lowest pension rates will be increased before the scheduled date, and the overall tax burden on private persons and companies will be reduced.

“Budget 2007 is the first budget of Bulgaria as an EU country and the macro framework provides for this. This will be the first budget of this country as a full member of the EU, and the first budget drafted by the ruling coalition,” Stanishev said. At the beginning of 2007 Bulgaria will have to make its first contribution – 624 million leva – to the EU budget.

The country’s projected GDP is 51 billion leva and average inflation – 4.4 per cent; expected revenue accounted for 41.7 per cent of the GDP and spending for 40.95 per cent. The budget surplus is estimated at 0.8 per cent of the GDP. Anticipated foreign direct investments for 2007 stand at 2.7 billion euro.

“The decisions made at today’s session of the Council of the Ruling Coalition are an important sign for Brussels,” said Saxe-Coburg. NMSII was grateful for the excellent relations with its coalition partners, he noted. Dogan said that the coalition council has turned into a political lab for recognising problems and fin2ding solutions to the issues of greatest importance to the state.