Trade unions in Bulgaria are strong supporters of EU membership. Together with the employers’ organisations and the government they have signed an Economic and Social Development Pact, in which all partners committed themselves to stronger social dialogue, to manage the socio-economic challenges involved in meeting the Lisbon Strategy objectives. This so-called tax reform is a clear breach of the pact. Furthermore, it will destabilise the economy and increase inequality and poverty in Bulgaria.

At a joint press conference yesterday (2/9/07) in Sofia, ETUC Deputy General Secretary Reiner Hoffmann stressed that flat taxes are in clear contradiction to the principles of the European Social Model. “From experience in other EU Member States there is no evidence that flat taxes improve competitiveness, but on the other hand they will put welfare systems and public services under pressure,” he said. “Only countries with decent and graduated tax systems, like those in Scandinavia for example, will meet the Lisbon targets of economic competitiveness, social cohesion and environmental sustainability.”

Reiner Hoffmann called on the Bulgarian government to stick to the social pact and to respect social dialogue as the procedure for introducing reforms. The ETUC will carefully monitor political developments in Bulgaria and support CITUB and PODKREPA in their responses.