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15, July-2002.

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Monday.

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Though the summer is in full swing, the prices of the watermelons are still high. This is why people keep buying watermelons 0.60 to 0.80 levs per kg apiece. In Sofia the prices at the Women's Market are the lowest ones - 0.40 per kg. Photo: Victor Levi

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President Georgi Purvanov met with his economic adviser Prof. Joseph Stiglitz. Pressphoto BTA. Photo: Tihomir Penov

SITUATION IN CRISIS REGIONS.
 
MIA
 
It is relatively peaceful Monday morning in Tetovo area, unlike Sunday night when gunfire was opened from several locations, MIA's correspondent reported.

According to police spokesman Voislav Zafirovski, "Makpetrol" gas station was demolished overnight.

The police sources reported shootings from Transportation Enterprise "Polet," Secondary School "Mosa Pijade," SEE University, "Kuzman Josifovski Pitu" military barracks, Red Cross, "Drenovec 2", "Ciglana", "Vonvardarska", "Sipad", "Kupenik" and "Gora Carsija" settlements, Tetovo Teke and other locations.

Gunfire was also registered from the surrounding villages in Dolni Polog valley and Sar Mount.

Parvanov: No Dictating from Abroad over the Missiles.
 
Standartnews
Elena Yaneva
 
Bulgaria shows will to settle the problem with the SS-23, but security is more important than the deadline, said President Georgi Parvanov yesterday in line with a recent statement by US Ambassador in Sofia James Pardew. Ambassador Pardew has stressed the need to destroy the missile systems and described US support for Bulgaria's NATO membership bid as contingent on the success of this process. "The deadline is of great import but they have been adopted by the Bulgarian Parliament rather than being dictated from abroad," Parvanov said further.
 
AIDS CASE - LAWYER.
 
BTA
 
Lawyer Yalnuzov Admitted to AIDS Trial.
 
Sofia, July 15 (BTA) - Bulgaria has been receiving full cooperation from the Libyan authorities in the trial against the Bulgarian health professionals, Foreign Minister Solomon Passy said Monday before leaving for Milan. In the Italian city Passy will meet with Prime Minister and Foreign Minister Silvio Berlusconi.
 
Lawyer Plamen Yalnuzov was formally allowed a few days ago to represent the Bulgarian defendants and will be able to assume his functions in full, Passy said.
 
"We appreciate this prompt gesture of the Libyan authorities," the Foreign Minister said. He declined to predict the outcome of the current proceedings and said that he is looking forward to the judgment of the Arraignment Chamber in Libya.
 
The Arraignment Chamber is convening in Benghazi on Monday, July 15 to hear the case in which six Bulgarian health professionals are charged with intentionally infecting 393 Libyan children with the HIV virus which causes AIDS.
 
Following its first hearing of the case June 3, the Chamber ordered additional investigation and questioning of the defendants.
 
People Lost Their Trust in Rulers.
 
Standartnews
 
The NMS rule reduced optimists from 56 percent down to 13 percent.
 
The people are completely disappointed with the rulers and politicians, the recent opinion-poll conducted by the MBMD polling agency shows. To its data, a year after the general elections, the credit rating of Premier Simeon Saxe-Coburg-Gotha, all his ministers and the politicians dipped gravely. As compared with January, the credit rating of the National assembly fell by 8 points, of the Presidency - by 7, of the Army - by 11, of the police - by 2 points. People trust less and less in the political leaders and parties. The number of Bulgarians who would not cast their ballots in future elections is still increasing, as they do not put their trust in neither of the political formations or state institutions. According to the figures, if general elections were held just now, the Bulgarian Socialist Party (BSP) would win by 16 percent. The National Movement for Simeon II (NMS) would rank second (14 percent), and the UDF would receive 8 percent. The electorate of the NMS has melted away fourfold in a year.
 
Why Does Simeon Keep Silence.
 
Standartnews
Kiril Iliev

I'm writing to you in line with the shady deals of Vice-PM Vassilev. Obviously, there are corrupted in each cabinet. And do you remember what Simeon Saxe-Coburg-Gotha used to say? If there were doubts about corrupted ministers or officials, he would not be hesitant to fire them. Well, there is an information about corruption just now. Yet, the premier keeps silence. And does not fire anyone to spare the revolts within his cabinet. For there will be ministers to vote for and against the resignation of the Vice-PM. In this country, there will always be a high-class corruption. It will be preserved, whoever is to come to power. Because the power-vested are involved in the corruption themselves and they relish dirty grafts.
 
Tobacco Riots Looming.
 
Standartnews
Biliana Vesselinova

People with 20-year record of service are shaking in their boots not to find themselves out in the street. We can't work anything else, vice-premier Vassilev will sell our business for peanuts, they say showing newspaper clippings which confirm that the government's favorite is nothing but a post box. In February workers in Bulgartabak-Shoumen staged a one-month protest because in bitter cold they've been working without being paid for months on end. In Shoumen the factory works sporadically, the orders are insignificantly small. Groups of workers are seeking to establish connections with their colleagues from the tobacco branch throughout the country to start the protests together. The tension is mounting also in Delhiorman among the people who grow tobacco. In Ludogorie whole villages that make their living on tobacco turn for help to the local structures of the Movement for Rights and Freedoms. We want Minister of Agriculture Mehmed Dikme to declare his personal commitment and save us, say the locals.
 
Cabinet Dismissed Russia's Claims.
 
Standartnews
 
Russia's claims for part of the assets of Bulgartabac holding are completely ungrounded, the cabinet decided at a clandestine sitting held as early as on Thursday. The information was released yesterday night by the Foreign Ministry, after the scandal flared over the two letters from Russia's President Putin, concealed by Vice-PM Nikolay Vassilev.
 
Shouleva Sets a Trap for Trade Unions.
 
Standartnews
Pavlina Zhivkova
Velislava Krasteva

Amendments to Labor Code curtail rights of trade unions.
 
The amendments to Labor Code will curtail the authorities of the National Trilateral Council for Cooperation, alarmed the deputies. The draft has been already submitted to the Registrar Office f the parliament. According to the well-informed sources, Minister of Labor Lydia Shouleva herself gave her blessing to changes. The bill will reduce the role of trade unions to handling labor and legal issues only. The National Trilateral Council, comprising trade unions and employees' associations, won't have any voting right when it comes to important problems concerning standard of living. The trade unions will be devoid of their right to refer to court the decisions of the Council of Ministers. The bill also envisages to enhance the role of the state in the resolution of these problems. Some moths ago the trade unions referred to court the decision of the government on rising electricity price and it was suspended. Under the bill the new texts will be enforced from 1.09.2002. A new uniform register of labor contracts will be enacted and the National Insurance Institute will be keeping it.
 
Wages of Doctors and Teachers to Up by 9 Percent.
 
Standartnews
 
Bulgaria will not be granted a loan of $450 million if the deal on Bulgartabac is to fail, the Finance Minister said.
 
The wages of medical doctors and teachers will be increased by 9 percent next year. It is envisaged in the Budget '2003, said Finance Minister Milen Velchev for the bTV. In 2002, the forecast inflation rates are 4 or 4.5 percent, and those of the GDP growth - 4.5 percent. In this way, the increased incomes will get ahead of the rising costs of living. Next year, the social expenditures will play a leading part, and those for the administration will be cut off, the minister said. He promised to raise the pensions and wages by rates outrunning the inflation. Velchev boasted of skyrocketing rates of the fisc reserve - it now amounts to 3.3 billion levs, and the agreement with the IMF reads that a fisc reserve of 1.9 billion levs should be sustained. "We will have problems with the WB in case the deal on Bulgartabac is to fail: the WB may not grant the planned financing of $450 million for the next 3 years," the minister elaborated.
 
PROF. STIGLITZ.
 
BTA
 
Prof. Stiglitz: "It's Important to Hear a Variety of Voices When Designing the Appropriate Economic Policy"
 
Sofia, July 15 (BTA) - "The primary issue for each country is to design its economic policy that's appropriate for that country. In doing that, it is important to listen to a variety of voices," the prominent economist and Nobel-prize winner Prof. Joseph Stiglitz said. He is President Georgi Purvanov's economic adviser.
 
The two discussed the challenges of returning the Bulgarian economy to economic growth, reducing unemployment, addressing the concerns of poverty, and providing opportunities for entrepreneurship.
 
Asked if he would advise an increase in the level of economic freedom, Prof. Stiglitz said: "It's important to try to create an environment in which markets work well. Excessive regulation can impede the market economy, (...) but even a well-functioning market economy can run into problems. One should strive to get the right balance: to get of rid of regulation that serves no useful function, but at the same time not to simply walk away from the important role that the government has to play."
 
The purpose of Prof. Stiglitz's visit is "to learn more about Bulgaria and the problems of transition here, and for me to share what I have learned from the other economies in transition". It is important to learn from the past successes and failures of some countries and thus plan a strategy with a greater likelihood of success, which is no easy task. A successful transition requires a broad democratic discussion, not just between the economic institutions, but with the participation of the public and academe. A successful economy is attractive for foreign investors, they do not usually go to a stagnant economy. And when they come, they help economic growth, Prof. Stiglitz said.
 
Prof. Stiglitz arrived here on a few days' visit on Monday.
 
Next he is meeting with National Bank Governor Svetoslav Gavriiski and IMF Resident Representative Piritta Sorsa.

A Million Bulgarians Depend on Bulgartabak.
 
INTERVIEW Standartnews: Evgenii Bakardzhiev

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MRF Must Interfere Assertively and Promptly, advises Evgenii Bakardzhiev.

- Mr. Bakardzhiev, what has happened during the year of the NMS rule?

- This is just another year of disappointment. Only the Foreign Ministry and Ministry of Interior handle their job well. Another minister whose chair is stable is Mehmed Dikme of the Agricultural Ministry. They, however, obviously contrast with the rest. The things look more like a farce than something serious.

- If Bulgartabak is sold out piece by piece, what will be the consequences for tobacco producers who don't have other livelihood?

- Bulgartabak is one of the structuring companies in Bulgaria. No one has the right to put it at risk or take its privatization lightheartedly. For a million of Bulgarians tobacco is the sole source of sustenance. Why should we experiment without any interference on the part of the coalition partner - the Movement for Rights and Freedoms? I think that the leadership of the Movement must interfere resolutely and must not allow people to suffer from this meddled and corrupt deal.

- You are a former chairman of the Bulgarian-Russian Commission. How would you comment on the fact that Nikolay Vassilev for two months had been keeping in his bottom drawer two letters from the office of Vladimir Putin about Moscow's claims on Bulgartabak and DZI property?

- The very fact that none of the prominent figures from the Russian government - neither a vice-PM, who is a chairman of the joint Russo-Bulgarian Commission, nor big business reps - were present during the visit of Premier Saxe-Coburg in Moscow, is embarrassing. To my mind, before the end of this year a cabinet reshuffle will be inevitable. The Premier himself still enjoys popular confidence. If before end-year no changes are made in the cabinet and the management policy pursued by the government, the consequences may be unforeseeable, having in mind the increasing poverty and the fact that people are running out of patience. Hopefully, we'll never live through another winter like the one of 1996-1997. I think that this time we won't be able to get to our feet again. The Bulgarians are terribly tired already.

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