Bulgaria strives to keep economic stability amid pay demands
Wednesday, 10 October 2007
SOFIA, Oct 9 (AFP): Bulgaria's government is striving to improve competitiveness and maintain stability while facing a wave of demands for salary increases less than a year after joining the European Union as its poorest member.
Schools and nurseries across the country have been paralysed for the past ten days as tens of thousands of teachers have gone on strike to double their pay.
University professors are also preparing to boycott classes and take to the streets, following protests this summer by medical staff, miners, public transportation drivers, factory workers and pensioners.
The average monthly salary in Bulgaria barely reaches 200 euros (282 dollars), official statistics show.
But many employees receive part of their pay under the table, economists say, judging by an increased buying capacity and a boom in credits.
Analysts have estimated that 30 per cent of all transactions in Bulgaria are made in the grey economy of undeclared incomes and scraped social security payments.
"Sacrifices during the transition period were justified until now by the need to enter the European Union. But people were also tired of being poor and were waiting for things to fall into place by themselves after accession," Prime Minister Sergey Stanishev commented Wednesday.
Meeting the 100-per cent pay rise demanded by teachers and other staff in the school sector would pump inflation even higher than the record 12 per cent on an annual base reached in August, he explained.
Schools and nurseries across the country have been paralysed for the past ten days as tens of thousands of teachers have gone on strike to double their pay.
University professors are also preparing to boycott classes and take to the streets, following protests this summer by medical staff, miners, public transportation drivers, factory workers and pensioners.
The average monthly salary in Bulgaria barely reaches 200 euros (282 dollars), official statistics show.
But many employees receive part of their pay under the table, economists say, judging by an increased buying capacity and a boom in credits.
Analysts have estimated that 30 per cent of all transactions in Bulgaria are made in the grey economy of undeclared incomes and scraped social security payments.
"Sacrifices during the transition period were justified until now by the need to enter the European Union. But people were also tired of being poor and were waiting for things to fall into place by themselves after accession," Prime Minister Sergey Stanishev commented Wednesday.
Meeting the 100-per cent pay rise demanded by teachers and other staff in the school sector would pump inflation even higher than the record 12 per cent on an annual base reached in August, he explained.