Bulgarian President-elect Backs Retirement Reform

Bulgaria's President-elect, Rosen Plevneliev, will be inaugurated on January 22, 2012. Photo by BGNES

Retirement reform in Bulgaria must happen as quickly as possible and with maximum transparency, according to President-elect, Rosen Plevneliev.

Plevneliev spoke Friday, during a visit to the second largest city of Plovdiv, saying he applauded the effort for a retirement reform, but would like to see more transparency and more clear goals.

"Two thirds of the European countries increased retirement age to 65 and this is not accidental. Bulgaria must also start on this road," the next President of the country stated.

He stressed the urgent need to achieve stability of the retirement system over the fact that currently 60% of the money for pensions must be provided by the cabinet from other funds.

"The retirement reform has no alternative, but debates at the moment don't focus on the most adequate steps to achieve change," Plevneliev pointed out.

He voiced another argument for the speedy retirement reform – the fact that as early as 2013, Bulgaria must start repay a debt of BGN 2 B known as "ex Finance Minister Milen Velchev's credit," along with refinancing and other pending payments.

The President-elect explained that in order to come up with all this money, the country will have to seek long-term loans, and their clauses would depend on the state of the retirement system thus all Bulgarians will have to pay the price if the reform is delayed.

Plevneliev, who in October won the post on the ticket of the ruling, center-right Citizens for European Development of Bulgaria party (GERB), is going to be inaugurated on January 22, 2012.

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