An investment of 1 billion is significant and this should be welcomed. This is how the former social and former economic minister Lydia Shuleva commented on the signing of the contract with „Rheinmetall” for the construction of a gunpowder and ammunition plant.
In the „Interview in NOVA News” Shuleva recalled that according to BNB data for the first half of the year, a decline of almost 11% in foreign direct investment is reported.
Shuleva commented that in the military industry, among other things, there are many jobs.
„It is important to note that we reported a 5.3% growth in the economy. However, we must realize who the drivers of this growth are. And the drivers are primarily the enterprises in the arms sector. They are the ones with the greatest contribution. This is income that increases the gross domestic product, unlike the industry, which is experiencing a decline. So another driver, another factor that will drag down the growth of the gross domestic product — there is nothing wrong with that. And, of course, we should welcome it”, commented Shuleva.
About the 2026 budget
„If we want to increase the income of the population, we must invest in production with high added value. In this budget, we must see policies aimed at stimulating this type of investment that provides high added value. And these are investments that are realized through innovation. High added value provides high salaries, not an increase in salaries in the budget sphere, which is what we are currently doing”, said Shuleva.
About social security
„The Economic and Social Council, of which I am also a member, some time ago made a very serious analysis of the pension system. This analysis contains many proposals that can provide serious income to the pension system. That is, there are large reserves in the system itself that have not been used so far”, she commented.
The reforms
„There was one definition for the upcoming budget - unreasonable. I am tired of living in a situation of absolute stagnation for 5 years — without any serious and real reforms. It was not complicated coalitions, assemblies, caretaker governments — what not. Everyone kept the status quo, to stay in power. Without reforms. And this budget promises to be like that again — without reforms, without policies”, said Shuleva.
„It is about a systematic failure to solve problems. Now we will raise social security contributions by 2%. This will not affect the pension system itself much at all. In principle, there must be some increase — it will inevitably happen. But the other reserves in the system require a policy, and I don't see any such, not even the beginnings of implementation”, commented the former Minister of Social Affairs.
„67% of the gross domestic product is given for salaries in the budget sphere — this is a huge percentage. 10.4% are only the costs for the state administration, because the public sector is much larger. Ordinary people pay 40% of the value of the insurance, and 60% is the employer. If only 20%, not 40% of these insurances are paid by people in the budget sphere, this is 11 billion leva. So there are many things that need to be thought about and that need to be implemented through systematic actions”, commented Lidiya Shuleva.
„Since 2020, there has been, in my opinion, an unforgivable loosening of fiscal discipline. Deficit budgets have begun. There is no longer any money in the Fiscal Reserve, which was generally collected from surpluses in good years. The pandemic is over, the first years of the war are over, but we continue with the deficits. They were withdrawn to pay salaries. The biggest problem of this and the next budgets, if measures are not taken, is this linking of salaries in the budget sphere to the average wage. This is an automatic mechanism for increasing salaries, without taking into account efficiency”, said Lidiya Shuleva.
“This leads to an unbearable burden and new debts. And the people who produce have to pay them, through higher social security contributions and taxes. I think this will not be easily forgiven”, said Shuleva.