Interview with Simeon Djankov, Deputy Prime Minister and Minister of finance of Bulgaria

How alarming is the evolution of unemployment in Bulgaria? Which measures will take Bulgaria to revive the labor market?

Unemployment data show relative stabilization of the labor market and I do not find them alarming. Our ambition remains to achieve below 10 percent unemployment at the end of the year. This is most important at the moment and we carefully monitor the processes. For the second quarter the national statistics shows 10 percent unemployment, the same as in the Euro area according to recent Eurostat data. This is normal in a period of exit from the crisis because the measures to shrink the deficits and the strict budgetary policies across the EU are already paying off. More time is still needed to stabilize the labor market; this can not happen immediately.

The measures we are taking now to accelerate economic growth in the post-crisis period will have positive effect on the dynamics of the labor market, too. This is a key priority of the Bulgarian Government, together with the measures to ensure the stability of public finances.

What measures have been taken by Bulgaria until now for real economic recovery and what other measures Bulgaria will take?

Bulgaria is one of the few countries in Europe which went through the crisis without changing its tax rates. We intend to keep the tax burden unchanged until 2013. This is the first and the main measure which is already bearing fruit. Thus we have minimized the negative effects of the crisis on ordinary people. At the same time we have sent a clear message to foreign investors that we keep a predictable tax policy and they can comfortably plan their business in Bulgaria.

We try to support economic activity and carefully monitor the development of the various sectors. W