Bulgaria – the Silicon Valley of the EU?
The Bulgarian government undertakes to “clean” the image of this country, which is presented as the poorest and most corrupt member state of the EU. The measures include programmes aimed at assisting businesses, attracting investments, creating a favorable economic and investment environment.
The growth of the Bulgarian economy has been steady and balanced in the recent years. However, we still have to catch up with the other countries in terms of incomes, this country’s Minister of Economy Emil Karanikolov said.
According to unofficial data, nearly 3 million Bulgarian citizens left their home country in the past 30 years. Economic migration increased sharply, especially after 2007 when Bulgaria became a member of the EU. Now, the Bulgarian cabinet is discussing measures to attract the Bulgarian citizens back to their country. Radio Bulgaria already informed that in the beginning of 2020 the state authorities will be ready to finance Bulgarian citizens who decide to return to their home country with up to EUR 600 a month. Is this process possible?
Our task is to create an economic model that will bring people back to Bulgaria. It is functioning slowly, but we have already witnessed positive results, Minister Karanikolov contends. For example, Bulgarians working in the IT sector have been returning to Bulgaria. Moreover, some foreign nationals come to this country to work in this field, Emil Karanikolov notes.
The well-functioning economy can disprove the statistics that present this country as the poorest in the European Union and the EU member state with lowest salaries, Minister Karanikolov contends:
This is the only way, because the administrative increase of salaries will lead to put us in a situation where wage growth will outstrip labor productivity. We should not allow this to happen. The economy should boost the increase of the salaries. In the past two to three years, the salaries have seen 8%-10% increase on an annual basis. Bulgaria places second in the EU after Romania in terms of wage increase.
The Executive Director of Invest Bulgaria Agency Stamen Yanev supports Emil Karanikolov’s statement that Bulgaria is a wonderful place to live and adds that Bulgaria is also a good destination for investment:
Bulgaria is a country with good political and economic stability. It is among the three EU countries with the lowest GDP/internal debt ratio. We can generate substantial financial stability which helps this country attract foreign investors. There are many talented people in Bulgaria who would be good and loyal employees of the big companies if they receive decent wages.
How is Bulgaria able to keep its talented people?
It is important for the young people to face challenges in their job where they can develop and meanwhile have opportunity to access different cultures and know how. The Bulgarian government has been working in the recent years towards improving the business environment and invest more in education.
Here is what Stamen Yanev said with regard to the most-promising sectors in the Bulgarian economy:
Several sectors have been developing very well in Bulgaria- the machine building, the automotive industry and the IT sector. The IT registers 25% to 30% annual growth which is not typical of the other EU countries.We believe that thee good digital infrastructure, the quick access to Internet and the 5g network give us reason to claim serious place in the high-tech field and become the Silicon Valley of the EU. Bulgaria can use its geostrategic position between Europe and Asia and manufacture an intellectual product which can be sold on the global markets.
Bulgaria has one of the world’s best IT talents. It is relatively easy to register a new company in this country and the costs are lower than in other countries. According to data of the National Statistical Institute, the IT and the telecommunications are the two sectors with the highest average salaries – EUR 1,500 which is twice higher that the average monthly salary in Bulgaria (EUR 600).