The Article, published in May 2007 by the European Employment Observatory, debates on undeclared employment and the grey economy in Bulgaria. The authors, Tihomir Bezlov, Senior Researcher at the Center for the Study of Democracy and Pobeda Loukanova, Senior Researcher at Institute of Economy at the Bulgarian Academy of Sciences, argue that the absorption of the Structural Funds demands proper tax behaviour of companies and transparent management. This defies the interests of the correct taxpayers to those evading taxes. It was the businessmen from the first group who launched a campaign against the shadowy sector with the traditional involvement of the professional unions. The high social security contributions are constantly the focus of debates organised by the professional unions. The Government on its part has serious political problems instigated by the grey sector expansion thus reducing the means for social expenditures. These more important
reasons induce the 2007 campaign for rethinking the recently applied approaches for limiting the grey economy in Bulgaria.
