Deputy PM Tomislav Donchev: Everybody Wants Higher Wages and the Cost of Labour in Bulgaria is Rising

"Everyone wants higher wages, and the cost of labor in Bulgaria is rising. The discussion becomes deeply flawed when incomes are reduced to what is written in the state budget, because for most Bulgarians, their income does not depend on the budget," said Deputy Prime Minister Tomislav Donchev in the studio of "More from the Day" on May 14.

"Incomes that do depend on the state budget are those of people employed in the public sector and individuals who receive pensions or are subject to social assistance. The income of the rest of the population depends on the condition, the health, and most importantly, the growth of the Bulgarian economy," Donchev explained.

According to him, Bulgaria is in the typical middle-income trap:

"When it joined the EU, Bulgaria's GDP per capita, relative to the EU average, was about 32–33%. Today, that figure has doubled — it's now 63% per capita. That is, everything we've produced, divided by the number of residents, now amounts to 63% of the European average."

According to the Deputy Prime Minister, from now on the policies to be adopted are much more complex. Two-thirds of them are related to education and workforce qualification.

"They are also connected to the state of what is known as business infrastructure. In order to attract more demanding and higher-value investors — those who produce expensive goods — we need ready-to-use sites: industrial parks connected to roads, railways, gas, electricity, and wastewater treatment facilities," Donchev explained.

Currently, ten such zones are being developed, financed by the Ministry of Innovation and Growth.

Regarding the public transport blockade in Sofia, Tomislav Donchev said this is a matter between the Sofia Municipality and the companies involved. He urged both sides to meet and negotiate in order to reach an agreement, as the entire capital is suffering due to the situation.