DW: Does Bulgaria Hope for a Grexit?

Views on BG | July 12, 2015, Sunday // 15:02|  views

The two economies are quite intertwined, with people and goods actively flowing both ways, and a Grexit scenario will impact rather negatively. Photo by BGNES

A Grexit scenario could also have positive consequences for Bulgaria, with a number of Greek companies potentially moving northwards, Deputy MP Tomislav Donchev has told Deutsche Welle.

In an article [DE], after a brief account on how intertwined Bulgaria and Greece's economy are, DW has tried to answer the question if an event of Greece abandoning the euro will bring about positive consequences to the Bulgarian economy.

Many Greeks like to go shopping in Bulgaria where some things cost half the amount in Greece, and a number of companies from the country have already moved here, DW reminds.

Greece, which invested some EUR 3.5 B into Bulgaria over the past years, is one of Bulgaria's three most important foreign investors. There are also about 200 000 Bulgarians who have found work in the neighboring country and who bring EUR 50-60 M home every year. As many as 14 000 Greek firms are now registered in Bulgaria, and a substantial tourist flow goes both directions.

Tourism expert Rumen Draganov is quoted as saying that a vast number of the million Greek tourists who visit Bulgaria every year do this to either see a dentist or go through plastic surgery, prices for both kinds of services sometimes being a third of what is normally paid in Greece.

The flat tax, of just 10%, is on the other hand quite attractive to businesses.

According to the text, most experts believe negative developments will prevail. A reference is made to a recent article published by the Wall Street Journal on the repercussions Greece's crisis is having on the Southern Bulgarian town of Sandanski, once frequented by thousands of Greek tourists.

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Tags: Bulgaria, greece, Sandanski, Tomislav Donchev, Rumen Draganov


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