Greek entrepreneurs moving to Bulgaria

Following the introduction of strict banking controls and restrictions on the movement of capital, 60,000 Greek businesses have expressed willingness to redirect their operations to Bulgaria. Although Greek banks reopened on Monday after remaining closed for three weeks, companies' funds remain blocked in the banks, preventing payments to foreign suppliers. Uncertainty about the economy and medium- to long-term financial stability persists despite the agreements reached in recent days. The decision to close banks for such a long period is estimated to have caused a loss of 6% of GDP in an already severe economic crisis. The Bulgarian Industrial Capital Association (BICA) estimates that a possible relocation of Greek businesses to Bulgaria could provide employment for at least 20,000 people. This redirection will be easier for trading businesses, while companies manufacturing and exporting products will need more time. Greek businesses are choosing locations not only near the border, in Petrich and Sandanski, but also in other Bulgarian cities. Greeks are increasingly buying properties suited to their needs and opening accounts with Bulgarian banks to pay suppliers. Another reason for transferring and redirecting business from Greece to Bulgaria is the rise in corporate income tax in Greece to 29%, compared with only 10% in Bulgaria. Greek companies' business activity currently provides work for 70,000 Bulgarians, and estimates suggest this number could soon exceed 90,000. It is evident that austerity policies within the European common market are wholly ineffective and detrimental to entrepreneurship and development. Bulgaria's economy, which needs to grow, will benefit and, remaining outside the euro, will offer Greek entrepreneurs the right environment to relaunch their activities. Bulgaria has the European Union's lowest public debt after Luxembourg. Since euro entry is currently on hold, there are no particular fiscal policy concerns, and the Bulgarian lev is pegged to the euro under a currency board arrangement to ensure robust monetary stability; that arrangement is not in question.