Employers' Association: Bulgaria's Government Decision Hinders Progress in High-Tech Industries
Business | February 5, 2025, Wednesday // 13:15| views
@BTA
The Bulgarian government’s decision not to recognize the Bulgarian Employers' Association for Innovative Technologies (BRAIT) as a representative organization for employers at the national level has led to its exclusion from the National Council for Tripartite Cooperation (NCTC). This decision, made by the Council of Ministers through its resolution No. 37/29.01.2025, has sparked criticism, with many arguing that it hampers the progress of the Bulgarian economy, pushing it further behind global technological trends and undermining its competitiveness.
BRAIT represents key sectors driving Bulgaria’s modern economy, including automotive, IT, biotechnology, fintech, artificial intelligence, blockchain, and renewable energy industries. These sectors are essential to global economic development and have been instrumental in sustaining Bulgaria’s fragile economic growth, particularly as high-tech industries maintain double-digit growth. These sectors not only attract young talent but also promote positive global perceptions of Bulgaria.
However, the decision of the Council of Ministers is seen as a failure to recognize the importance of these innovative industries. It follows a contentious process managed by the Commission for Establishing the Existence of the Criteria for Representativeness, under the Ministry of Labor and Social Policy (MLSP). This process has been criticized for its lack of transparency and adherence to democratic principles. The commission’s actions have been described as opaque, and the decision to deny BRAIT membership contradicts the progress needed to develop a new type of economy for Bulgaria, one that is more productive and competitive.
Despite BRAIT meeting all the formal requirements for inclusion, the decision reflects a broader trend of insufficient political awareness about the role of digital technologies, artificial intelligence, and cybersecurity, which are increasingly shaping the global economy. The political class is accused of lacking understanding of key sectors that will define Bulgaria’s future economic position.
The decision not to include BRAIT in the NCTC is viewed as a deliberate move to maintain a council that lacks vision for the future. Critics argue that the council is functioning merely as a platform for compromise, where important economic discussions are reduced to short-term decisions with no long-term strategic goals. This is seen as part of a broader failure by the state to address issues such as money laundering, poor digitalization, inadequate investment, an unstable business environment, ineffective public administration, and rising corruption.
The Bulgarian government's decision to exclude innovative technology sectors from key national discussions could limit the country's ability to compete globally. By sidelining high-growth industries like IT, AI, and renewable energy, the move may discourage investments and hinder the development of a modern, competitive economy. This lack of focus on cutting-edge sectors could make Bulgaria less attractive to young talent and international investors, ultimately stalling economic progress.
BRAIT’s membership application was supported by a report from the National Social Security Institute, which confirmed that the association represented over 100,000 workers and employees. However, the Commission’s final decision stated that BRAIT had only 70,140 workers, a discrepancy that remains unexplained. The decision has left BRAIT’s leadership without any clarity on the reasons for the rejection, further raising concerns about the flawed procedure for selecting members of the NCTC. These practices are seen as detrimental to the future of Bulgaria and its younger generations, and BRAIT has vowed to challenge the decision using all available legal means.
BRAIT, established on February 5, 2020, is a successor to the Business Clusters Association and aims to support high-value-added industrial sectors in innovative technologies. The association currently includes significant industry players such as the Bulgarian Association of Software Companies (BASCOM), the Bulgarian Association of Information Technologies (BAIT), and several other prominent organizations from the renewable energy, artificial intelligence, and ICT sectors.
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