February 11, 2003

Honorable Members of Parliament, Ministers, colleagues! BIBA members include more than 200 of the largest companies in Bulgaria. The fact that we devote special attention to the conditions for business development in Bulgaria and that the findings are presented in a White Book on the business climate now allows me to present some of the main conclusions and issues identified by BIBA members as problems to business development in Bulgaria related to the judicial system.

Naturally, the development of business in Bulgaria is related not only to the enforcement of the laws and not only to the judicial system. Things need to be considered from a broader perspective. First of all, the fight against corruption should be treated as a process involving the legislators, who should adopt laws that are unambiguous, clear-cut, and applicable to all, as well as the judicial system, which guarantees that these laws will be enforced equally with regard to all persons and entities. All BIBA members are concerned that the delayed judiciary reform may prove one of the major stumbling blocks in the process of our preparation for accession to the European Union. Of course, the reform in the judicial system does not only involve the passing of legislation, conclusion of agreements, and decision-making. This reform also has a number of financial implications. Finally, its implementation is associated with high public expectations.

The past years have been marked by major government initiatives to fight corruption, some of which were referred to today. Regrettably, the results are not tangible. If there are any, they have not been sufficiently publicized. If not, then clearly there is a call for greater efforts. The absence of an ombudsman law was mentioned repeatedly and we think the adoption of such a law, the creation of such an institution will be one of the mechanisms to reduce the opportunities for corruption in the administration. There have been serious efforts in the past years to reduce the number of license, registration, and permit-requiring regimes. Unfortunately, last year's amendments to the law did not include provisions for tacit agreement, which would have limited the opportunities for corruption in the administration. Neither has the reform in the administrative system been fully implemented.

I have to agree with the Ministers and MPs who said how pleased they were with the dialogue existing in our society with regard to corruption. And since Coalition 2000, in its latest report, has focused chiefly on the need for judicial reform, and our discussion today also unfolded in that direction, let me point out that for the past few months there has been another forum where the government and the business associations have been discussing the problems of business - it's the Council for Economic Growth. The issues related to the development of the economy in Bulgaria are considered within the Council precisely from the point of view of public administration, which is an essential factor in economic development. Therefore, the opportunity created within this Council for Economic Growth to discuss the new legislation, the expected effects and implications of the adoption and enforcement of such laws, would to some extent help limit the possibilities for corruption in public administration.

I would like to inform you of a decision and imminent intention of the Bulgarian International Business Association. We have taken on a commitment before our members, on their insistence, to report to the Supreme Judicial Council any improper actions on the part of the judicial system vis-a-vis business companies and enterprises. The representatives of the big investors in Bulgaria, for obvious reasons, cannot be the corrupting factor since everything is strictly documented, but they can be the object of actions of the courts as a result of corrupting influences. I hope that we will find the most appropriate forms, mechanisms, and solutions, without necessarily making public some of the cases. But we believe there is still a lot to do under the reforms of the administration and the judicial system. And any action taken by the government and parliament with the aim of creating a clear business environment will be sure to have the support of the investors.

Thank you.