“This process is already happening in Bulgaria”, political analyst Georgi Kiryakov told Radio Bulgaria. “Many Greek companies move their business and their head offices to Bulgaria. Many Greek depositors transfer their Euro bank accounts in Bulgarian banks. To my knowledge the Greek nationals wired some EUR 4.5-5 billion to Bulgarian banks in the past few months, which is good for our country, because the market of credit lending will enliven. Let me give you an example. If the Greek citizens avoided paying taxes in their country due to the lack of a sound tax system there, now they will have to pay much higher taxes as compared to those levied in Bulgaria. That is why they prefer to move their business abroad and pay lower taxes. As far as I know some 14,000 Greek companies have already shifted their business to Bulgaria.”

It would be good news if the national economy stirs a little due to this trend.

“However, this trend has a negative side as well. Many Bulgarian nationals who have been working in Greece in recent years may have to return to Bulgaria due to the crisis there. According to Bulgarian statistics, some 100,000 Bulgarians are currently employed in Greece. If those people fail to find job right after they return to Bulgaria, they will become a burden to our state budget. Moreover, these people will receive substantial compensations, because most of them receive high salaries in Greece. I am talking about compensations worth EUR 750 a month, which is a very good amount for the local standard, although it would be paid for 6 to 9 months only.”

Bulgaria has to bear in mind the fact that most people are employed in the utilities field. Unfortunately, they will find it difficult to start a job in this field in Bulgaria, which will influence negatively the state budget.

“We are not sure whether the net effect will be positive or negative”, Georgi Kiryakov went on to say. “However, the Bulgarian economy has to become stronger. Currently it is still quite weak and resembles the Greek economy. Our agriculture field is strong and receives subsidies from EU funds. The tourism field is also strong, but it is still seasonal. However, this sector of the national economy may suffer serious losses due to the reflux of Russian tourists. The world economic system is quite complicated as a whole. It tries to find the right balance, but often fails to do so. We must look for innovative ideas, in order to prosper. We can not rely on EU funds and seasonal industries only. We can rely on the creative potential of our people instead. Unfortunately, many talented Bulgarians left this country in the past 15 years due to the inability of a series of governments to provide equal start and freedom of entrepreneurship to those who wanted to do business here. The business is entirely dependent on public procurement orders subsidized by the European Union. I can not imagine the German economy being dependent on EU funds only, or the British economy being dependent on seasonal activities. If a given state does not have a sound industrial base its citizens are doomed to miserable existence.”

English version: Kostadin Atanasov