International Carriers Union Plans Protest on 15 June, Transport Disruption Expected in Sofia and Major Cities

The Union of International Carriers in Bulgaria is planning a protest on 15 June, with traffic expected to be affected in the capital and Bulgaria’s major district cities, the organisation’s Executive Director, Yordan Arabadzhiev, told the “The Day Begins” programme on June 8.

“We will protest, but without blockades or stopping traffic. There will be difficulties in movement in the capital and the major distrct cities. We apologise in advance. We are protesting not because we want to, but because we see no way out,” he said.

The reason for the discontent is a lack of feedback from the state on key issues affecting the transport sector, including problems related to motor third-party liability insurance (“Green Card”), the application of the de minimis regime, and compensation for toll charges.

Yordan Arabadzhiev, Executive Director of the Union of International Carriers: “For three months we have been holding talks and warning about how serious the situation in the transport sector is. This includes meetings with the caretaker government. We also met with the new government, but so far there has been no result regarding what we have articulated and proposed. In this context, we have concluded that the only option left is to protest. We have no choice.”

Regarding compensation for toll fees, according to Arabadzhiev, the promises have not been kept.

“First of all, these funds were set out in a Council of Ministers decree from the end of last year. The caretaker government promised that, based on the revenues collected from the toll system and in connection with the fuel crisis, these funds would be increased to 50 million euros. A notification from the European Commission was required. At present, we are not aware that such a notification exists, and there is no discussion at all as to whether such support will be provided.

It must be clear to everyone that transport is one of the main drivers of inflation. And if inflation is not tackled at its source, the bill is paid by the whole society. We want targeted measures in support of transport so that there is no direct pressure on inflation.”

The transport sector suspects the existence of a cartel among insurers, as the compulsory motor third-party liability insurance (“Green Card”) has doubled in price, reaching over EUR 3,000.

“Deputy Prime Minister Pulev announced 10 days ago that there is a solution to this issue. As of now, 10 days later, our colleagues are still concluding insurance policies at levels above EUR 3,000. How can we explain this to a colleague who two months ago was paying EUR 1,500 to 1,600 and today is paying double?

Insurance is mandatory, and when the legislator requires something to be compulsory, there must also be a clear mechanism for its implementation. At present, insurance companies themselves determine the pricing methodology. And when one player exits the motor third-party liability market, the remaining ones automatically increase prices.

In Romania, there was a similar problem. There, the financial supervisory authority commissioned an audit and a reference price was established by vehicle type. In our case, there is no clarity on the methodology – and this, in our view, creates suspicions of a cartel. Insurers are allegedly agreeing among themselves not to let prices fall below a certain level – around EUR 3,000.”

According to Arabadzhiev, the prosecutor's office, the Financial Supervision Commission (FSC), the Commission for Protection of Competition (CPC), and the government have been notified about the issue.

“At present, the FSC is acting as if this is happening in a neighbouring country, not in Bulgaria.”

An urgent meeting with the Prime Minister has been requested.