Bulgaria's GERB Postpones Controversial Changes to Pension Insurance

Chair of GERB's parliamentary group Tsvetan Tsvetanov announced the postponement of the proposed changes to pension insurance contributions. Photo: BGNES/EPA

Bulgaria's main ruling party GERB will postpone the proposed changes to pensions insurance contributions, as these are unacceptable to the coalition partners from the Reformist Bloc (RB).

The changes proposed by GERB also do not have the approval of the two parties supporting the coalition government – the Patriotic Front (PF) and the Alternative for Bulgarian Revival (ABV).

The decision was announced surprisingly on Friday morning by the chair of GERB's parliamentary group Tsvetan Tsvetanov, electronic daily Dnevnik reports.

The Finance Minister Vladislav Goranov was not content with GERB's decision, announcing that he will speak to Prime Minister Boyko Borisov to reverse the postponement.

Goranov was so staunch in his opposition, that even the chair of the parliamentary Budget Committee Menda Stoyanova and the Deputy Prime Minister Rumyana Bachvarova could not convince him to accept the postponement.

Tsvetanov announced earlier that all proposed changes pertaining to the transfer of pension insurance contributions from the private pension funds to the National Social Security Institute (NOI) are postponed until March next year.

The controversial proposals had to be discussed in Parliament on Friday or Saturday.

There are still no comments and confirmations from the chair of the parliamentary Budget Committee Menda Stoyanova.

The Prime Minister announced on Thursday, while still in Brussels, that he is willing to make compromises, accepting the possibility for the right to swap pensions funds.

Bulgarian President Rosen Plevneliev called on Friday for a three-month postponement of the proposed changes.

His predecessor and current leader of ABV Georgi Parvanov stated that GERB's decision for the proposed changes represents a rupture in the coalition, eroding the confidence between the partners.

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