In May 2015, the European Commission published the annual country-specific recommendations (CSRs)87 for each Member State, including Bulgaria. The comparison of CSRs 2015 with previous CSRs demonstrates the persistence of a number of issues: tax collection and shadow economy, healthcare and pension systems, labour market and educational exclusion, energy sector reform, business environment and investment climate. Limited progress is persistently reported concerning 2015 CSR 3. and CRS 588. Table 10 compares extracted CSRs which can be of importance for the overall research and innovation environment in Bulgaria:
Table 10: Comparison of Country Specific Recommendations (2013-2015) – extract
CSRs 2013 CSRs 2014 CSRs 2015
1. Preserve a sound fiscal position by ensuring
compliance with the MTO and pursue a growth-friendly fiscal policy as envisaged in the Convergence Programme. Implement a comprehensive tax strategy to strengthen all aspects of the tax law and collection procedures with a view to increase revenue, in particular by improving tax collection, tackling the shadow economy and reducing
compliance costs. Establish an independent institution to monitor fiscal policy and provide analysis and advice.
1. Reinforce the budgetary measures for 2014 in the light of the emerging gap relative to the preventive arm of the Stability and Growth Pact requirements. In 2015, strengthen the budgetary strategy to ensure that the medium-term objective is reached and, thereafter, maintained. Ensure the capacity of the new fiscal council to fulfil its mandate. Implement a comprehensive tax strategy to strengthen tax collection, tackle the shadow economy and reduce
compliance costs.
1. Avoid a structural
deterioration in public finances in 2015 and achieve an
adjustment of 0.5 % of GDP in 2016. Take decisive measures to improve tax collection and address the shadow economy, based on a comprehensive risk analysis and evaluation of past measures. Improve the cost- effectiveness of the healthcare system, in particular, by reviewing the pricing of healthcare and strengthening outpatient care and primary care.
3. Accelerate the national Youth Employment Initiative. Further strengthen the capacity of the Employment Agency with a view to
providing effective counselling to jobseekers and develop capacity for identifying and matching skill needs. Enhance active labour-market policies, in particular concerning national employment schemes…
3. Improve the efficiency of the Employment Agency by
developing a performance monitoring system and better targeting the most vulnerable, such as low-skilled and elderly workers, the long-term
unemployed and Roma. Extend the coverage and effectiveness of active labour market policies to match the profiles of job- seekers, and reach out to non‐ registered young people who are not in employment, education or training, in line with the objectives of a youth guarantee…
3. Develop an integrated approach for groups at the margin of the labour market, in particular older workers and young people not in
employment, education or training…
87http://ec.europa.eu/europe2020/making-it-happen/country-specific-recommendations/2015/index_en.htm 88http://ec.europa.eu/europe2020/pdf/csr2016/cr2016_bulgaria_en.pdf
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4. Adopt the School Education Act and pursue the reform of higher education, in particular
through better aligning
outcomes to labour-market
needs and strengthening
cooperation between
education, research and
business.
4. Adopt the School Education Act and pursue the reforms of
vocational and higher
education in order to increase the level and relevance of skills acquired at all levels, while fostering partnerships between educational institutions and business with a view to better aligning outcomes to labour market needs. Strengthen the quality of vocational education and training institutions and improve access to lifelong learning.
4. Adopt the reform of the School Education Act, and increase the participation in education of disadvantaged children, in particular Roma, by improving access to good- quality early schooling.
5. Take further steps to
improve the business
environment, by cutting red tape, implementing an e-
government strategy and
implementing the legislation on late payments. Improve the quality and independence of the judicial system and fight corruption more effectively. Improve the access to finance for SMEs and start-ups.
5. Continue to improve the
business environment, in
particular for small and
medium-sized enterprises, by cutting red tape, promoting e-
government, streamlining
insolvency procedures and
implementing the legislation on late payments. Improve the public procurement system by
enhancing administrative
capacity, strengthening the ex ante checks performed by the Public Procurement Agency and taking concrete steps for the
implementation of e-
procurement. Enhance the
quality and independence of the judiciary and step up the fight against corruption.
5. With a view to improving
the investment climate,
prepare a comprehensive
reform of the insolvency
framework drawing on
international best practice and expertise, in particular to improve mechanisms for pre- insolvency and out-of-court restructuring.
6. Accelerate the absorption of
EU funds. Ensure sound
implementation of public-
procurement legislation by extending ex ante control by the Public Procurement Agency to prevent irregularities.
Source: http://ec.europa.eu/europe2020/making-it-happen/index_en.htm
Bulgaria is in process of addressing the challenge of improving the overall quality and efficiency of its education system, starting with the School and Pre-School Education Act89, approved by Parliament in September 2015. The changes introduced concern:
state subsidy for private schools (provided 20% free access based on need and talent);
four stages of the school education (1st to 4th grade; 5th to 7th grade; 8th to 10th grade; and 11th and 12th grade), compulsory until 16 years of age;
new types of schools (e.g. innovative, in terms of curricula and teaching methods) and principles of autonomy;
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support schools transformation into centres for support of personal development;
public councils affiliated to each school in order to allow for additional civil society control and involvement in the educational process;
new control institution (National Educational Inspectorate).
“In higher education, reforms have made very limited progress. The existence of an important disparity between higher education outcomes and labour-market demand worsens structural unemployment and hampers the development of high-value, innovative sectors. The poor performance of higher education is linked to a lack of incentives at institutional level as well as to the standard of individual researchers and teachers”90. The Higher Education Act itself has been modified 45 times since its introduction in December 1995, or 2.25 times per year on average. The trend continued in 2015 with 2 updates in July 2015 and October 2015. The expection is that with the new Strategy for the Development of the Higher Education 2014-2020, the necessity for revisions will diminish.