Bulgarian PM Scorns Labor Minister for 'Haphazard' Pension Talk

Finance | September 8, 2011, Thursday // 19:09|  views

Bulgaria's Prime Minister, Boyko Borisov, says members of his cabinet should not make statements before there is a decision on the respective matter by the Council of Ministers. Photo by BGNES

Bulgaria's Prime Minister, Boyko Borisov, was highly critical of the statement of Social Policy and Labor Minister, Totyu Mladenov, about possible intentions of the cabinet to raise retirement pensions in the beginning of 2012.

"I called Mladenov and gave him an order forbidding him from making statements before there is a decision of the Council of Ministers," Borisov told reporters Thursday before the start of a charity football game.

Earlier Thursday, Mladenov announced the cabinet "has the ambition" to increase all budget sector salaries and retirement pensions as of January 2012, adding the increase was likely, but declining to state with how much. He based his forecast on the upcoming discussions on the budget micro-frame for 2012.

Last week, Deputy Prime Minister and Finance Minister, Simeon Djankov, also hinted about a possible increase. While commenting on the privatization deal of Bulgaria's State-owned cigarette-maker monopoly Bulgartabac, he said that the money from the sale will be deposited in the so-called Silver (Retirement) Fund and this could help a likely increase of retirees' income next year.

"These BGN 200 M will be very helpful in talks scheduled for the end of October-beginning of November in order to increase pensions in 2012," Djankov said, even though the Silver Fund is supposed not to be used for upping retirees' income, but to cover the deficit in 10 years when aging population will have a very strong effect on Bulgaria.

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Tags: Totyu Mladenov, Labor Minister, salaries, pensions, retirement pensions, minimum wage, minimum wages, minimum salary, Deputy Prime Minister, Prime Minister, Boyko Borisov, finance minister, Simeon Djankov, Bulgartabac, Silver Fund


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