Guest article: The 10 measures of the UDF

We continue with the topic of election campaigns and programs, focusing on the parties on the right. And the UDF opened its election campaign with 10 measures (of which I will look at 8, because the other 2 are nonexistent) that will "modernize" Bulgaria (or at least they won't take it back).

1. "We should not allow the state and municipalities to owe money to business. The state and municipalities owe over a billion to Bulgarian business. We will propose a bill in which both the state and municipalities cannot make new expenditures before they have paid off the old ones."

A lure for business. Delaying payments is definitely negative, especially for small businesses that rely on them to cover their current obligations. Will this apply to already overdue obligations? If so, the projects that can be implemented by municipalities will drastically decrease, because for most of them they take out a loan that is covered when they receive the money for the project. If not, they will still be able to implement fewer projects because they will have to pay off their obligations before starting new ones, and that is the idea of the loan – you take it out to carry out an activity now that you will pay off over a long period of time in the future. The absorption of EU funds would also decrease – the costs for them are also reimbursed after the project is completed.

2. "A sharp reduction in restrictive licensing and permitting regimes that harass businesses."

There is logic in easing the conditions for starting a business. Bankruptcy conditions should also be improved – currently, bankruptcy proceedings can drag on for years; a period during which creditors cannot receive their obligations.

3. "VAT refund within 10 days."

Currently, the recovery period is 2 months and reducing it sounds good. It is interesting whether the UDF has taken into account the administration's ability to react within 10 days. And this sounds more like flattery to business than a realistically feasible measure.

4. "We have a ready-made version of the personal bankruptcy law, which regulates the relationships between citizens and creditor banks."

Again – an enigmatic wish in the spectrum of rather positive ones. Well, show him this “ready-made version”!

5. “The UDF will also work to double the education budget.”

Pure populism - without serious reforms, education will prepare the same functionally illiterate teenagers and uncompetitive higher education professionals, only more expensively.

6. "The UDF will also insist on limiting the size of land that can be leased."

“Currently, we have several dozen large tenants who suck up 85% of the subsidy for Bulgarian agriculture. This must be stopped.” A typical “right-wing” measure – introducing restrictions. We reduce licenses that hinder business, but we raise barriers to the maximum arable land? The problem is not the amount of land that can be cultivated, but the availability of subsidies in general. But what is expected to be done by a right-wing party – reducing preferences – has been bypassed by the UDF.

7. “The UDF is against monopolies, but also against the nationalization of the ERPs.”

OK. This is a direct leap towards “modernization”. In fact, the biggest energy monopolist in the country is… the state. It sets the rules (SKEWR – an “independent” commission paid from the budget), it is the biggest producer and owner of the entire transmission system (NEK), it determines who and when will be included in the energy mix (ESO). As with healthcare, the state monopoly is the one against which measures must be taken.

8. Changes in healthcare and destruction of the NHIF monopoly.

This sounds good, in line with (some of) the protests. But let's not forget that they could create another monopoly to replace the NHIF. The solution to the problem is the liberalization of the health and pension insurance market. Consumers (all citizens) should have a choice of a private fund in which to insure themselves, and a private health insurance company, as well as a choice of packages under which to insure themselves. Although we have Kabaivanov's assurance that: "I myself am a doctor and I know what the situation is at the moment - dissatisfied doctors, desperate patients, a non-working system ..." he gives no signs that the UDF will take this path of liberalization.

The UDF measures do not impress with originality; most are nothing more than good wishes and an attempt to catch the wave of public opinion on controversial issues (healthcare, business environment, fight against monopolies, education). There is no indication that they are based on an objective analysis of the situation. Some measures (limiting the amount of land) have nothing to do with right-wing politics. If some are implemented in practice, they would have negative effects on the economy, although they certainly look good on an election poster.

Daniel also writes an interesting blog at the following address: http://totrants.wordpress.com/

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