Challenges for Bulgaria vis à vis the European social model

In October 2006, the Economic and Social Council of Bulgaria and the European Economic and Social Committee organised a conference on the European social model and the particular challenges facing Bulgaria. The topics discussed included the national labour market situation, migration of workers, corporate social responsibility and the role of the social partners.

On 2 October 2006, an international conference was held in Sofia on the ‘European social model and the challenges facing Bulgaria’. The discussions focused on labour market policies, mobility of workers, corporate social responsibility (CSR), and the role of social and civil dialogue in developing the European social model.

The conference was organised by the Economic and Social Council of Bulgaria (ESC) and the European Economic and Social Committee (EESC). More than 150 representatives of the ESC, the government, the parliament, non-governmental organisations (NGOs), the media as well as guests from seven European countries and EESC representatives attended the conference.

The EESC rapporteur, Ernst Erik Ehnmark, outlined that historically the European social model has surmounted many challenges, and even more have yet to come. In this respect, the social model should be dynamic, or else it will lose its relevance.

National context

The challenges facing Bulgaria are influenced by national issues, explained Jeliazko Hristov, Chair of the ESC’s International Affairs and European Integration Commission, and President of the Confederation of Independent Trade Unions in Bulgaria (CITUB). Nevertheless, joint efforts within the EU are needed to overcome these challenges. The most serious challenges result from the long-term negative structural labour market indices that reveal Bulgaria’s low level of competitiveness.

Substantial numbers of low-qualified workers in the country have no opportunity to enter the labour market and remain in a trap of poverty and social exclusion. This situation is further aggravated by negative demographic growth. Mr Hristov argues that the government’s attempts to reform pension insurance and tax systems under employer pressure are not well founded. He considers that the necessary reforms should focus on greater flexibility of labour while preserving the security of workers, on reforming education and on promoting lifelong learning.

Mobility and the labour market

The European labour market is not in danger of social dumping by the Bulgarian labour force, declared Dimitar Manolov, ESC representative and Vice-President of the Confederation of Labour Podkrepa (CL Podkrepa). In quantitative terms, Bulgaria’s labour force represents only 1.5% of the total EU labour force. Furthermore, over 90% of Bulgarian households own their houses and thus their mobility is low. To a certain extent, the emigration resource is already exhausted, with about 700,000 workers having left Bulgaria during the last 16 years. Mr Manolov also argued that a recent survey reveals that only 45,000 Bulgarians have mentioned possible plans to emigrate after 2007.

The Minister of Labour and Social Policy, Emilia Maslarova, added that the quotas for Bulgarian workers under bilateral agreements, previously signed with several European countries, have not even been used up.

Meanwhile, Bulgaria must face the challenge of improving its internal labour market situation. According to Minister Maslarova, ‘workers’ qualification and training should be made a priority’ for both the government and employers. In the near future, it will probably be necessary to import workers into Bulgaria from other countries, the Minister noted.

In this context, the Deputy Prime Minister and Minister of Foreign Affairs, Ivaylo Kalfin, announced that a working group has already been formed to prepare a report on a comprehensive, economically justified and socially committed migration policy. One important aim for the government will be to ensure that incomes and the social package for Bulgarian citizens are comparable to those in other EU Member States (BG0609029I).

Corporate social responsibility

The employers highlighted the subject of CSR at the conference. The ESC Vice-President and Chair of the Bulgarian Industrial Association (BIA), Bozhidar Danev, stated that companies are the main driving force for implementing CSR policies, but partnership efforts with the whole of society are also needed. An enterprise should define its own priorities in terms of social activity and should seek to establish a balance of its own interests and those of the public.

An EESC representative, Évelyne Pichenot, underlined that enterprises are not the only component of the economic system, but form an integral part of human society. Ms Pichenot reiterated the EESC requirements related to CSR, namely coordinating between tools and the acquis communautair? (EU body of legislation) and ensuring their stability, as well as informing all stakeholders and developing dialogue with them.

Conclusions

The key findings of the conference for Bulgarian and European institutions are the following:

• there is a need to develop a dynamic and flexible social and civil dialogue based on the values of the European social model;

• the challenge of EU integration requires rapid and adequate restructuring of the education and training systems;

• Bulgarians do not pose the threat of a mass influx of cheaper labour into the European labour market.

The conference also suggested the strict adherence to the principle of social partnership in the planning, programming and implementation processes related to EU structural and cohesion funds. The document calls on the government to support and guarantee the participation of the social partners both in the structures of the European social dialogue and in the EESC.

Lyuben Tomev, Institute for Social and Trade Union Research (ISTUR) of CITUB