EU growth outlook remains unchanged according to an analyst from 'Satori' and is pointed at insufficient 0.9 by the end of the year on an annual basis.
Political risks ahead of the euro zone remain as talks are held in Italy at top level, to consider taking the country out of the monetary pact which could greatly destabilize the country and the entire European Union.
Factors in it are the political instability which swept Greece, Italy and Bulgaria in recent months. The main forces behind it are the vastly populist parties in the national assemblies of those and other counties.
In Italy, untransparent and populist are roughly 60% of parliamentary represented forces similar to or slightly better of the situation in Greece.
Bulgaria however had greatly unaccountable governments for the last 12 years which found various ways to avoid projecting and programming actions towards the reduction of enormous high flours, political corruption. In recent weeks, the Bulgarian government was brought down by country wide protests mainly against the political and judicial corruption, the lack of expertise of the government and its complete failure to even desire reforms.
As a result, Bulgaria is choked from dependence of foreign oil and gas (mainly Russian) and its vast majority of parliamentary represented political parties and structures are largely financed by dirty money and foreign interest (Russia).
Nearly 90% of the political spectrum in the local parliament lacks transparency and basic accountability and spends much of the cash it generates (often from illegal activities and/or of groups and companies close to the Russian government) to manipulate local media market which firmly represents its interest almost entirely, making Bulgaria the worst in free speech ratings in the EU. (http://www.transparency.org/cpi2012/results , http://www.bghelsinki.org/en/ )
It is not to be underestimated the total failure of the last three Bulgarian governments to look towards catching up in technology and education, in which the country continues to lag even further.
Bulgarians are utterly disillusioned (they are in the top three unhappiest nations in the world) as they are angry of the complete failure of three consecutive governments to create a sustainable economic policies and growth, which is understandable in a country which has such enormous, almost Russia style and extent problems with business, political and judicial corruption.
Bulgaria is a country that is generally not a misfit indicator of progress, but relatively poor economic data, weak social capital and poor management. So it's not surprising that its population is one of the most dissatisfied in the world of their lifestyle.
So to take a brief look of Bulgaria's annual ranking for prosperity of the London-based NGO Legatum Institute. In the ranking of 142 countries (plus two areas without state status) is has been rated at 48th, but data from 2010-2011. is indicating that Bulgarians are only the 132 position on life satisfaction.
Key Indicators for Bulgaria
The bulk of the discontent comes from the weak economic conditions and poor management. Only 9.2% believe their government fights poverty (40% of the world average), 26% are satisfied with their standard (62.8% of the world), and 49% agree that could succeed with hard work (81.7% the world). Less than one quarter (22.6%) trust the justice system (53.3% of the world).
Bulgaria has not changed its position from last year's ranking, but then were surveyed only 110 countries. Since 2009. Bulgaria has run about 46 to 48th, and this year it is in front of Latvia, and behind Greece.
(Report Legatum Prosperity Index 2012)
In the ranking of economic indicators Bulgaria is ranked 93rd, in governing 72th, in trust among members of society 85th, in personal freedom 59th. Bulgaria is at the bottom of the group of top 50 countries where the main role for the prosperity of society play entrepreneurship and responsible management that feed each other with energy and lead to even greater progress. Almost immediately after that its starts the group of developing countries that are more important health and education.
Democracies are 27 of the top 30 countries and in an increasingly global world tolerance towards immigrants began to play a very important role, because where it is large, societies prosper more, say the authors.
This time the index has added 32 countries and so their total number reached 142. Thus Prosperity Index covers 96% of the world population and 99% of global GDP. Classification is an attempt to combine economic performance with subjective assessment of people's lives and the situation in their country.
Hardly a surprise that Scandinavian countries are again at the top, that European economies going down dramatically and the club of the "Asian Tigers" quickly rose in the rankings. Norway, Denmark and Sweden are the top three. In Europe as a whole increased prosperity - Netherlands climbs to 8, Ireland is the tenth and Germany on 14 position. But two-thirds (24 of 33) European countries have retracted since 2009. Quickly moving up are Indonesia, Vietnam, Thailand and Malaysia, but is significant that along with China and Saudi Arabia are in the group "prosperity without liberty."
Unprecedented collapse of the U.S. outside the top 10 countries in the world is one of the surprising findings in the report. From the Legatum Institute The authors state that "the American dream is in serious crisis," and the country, occupying 12th place, has given way in 5 of the 8 categories in the index has come down with eight items on the list and fewer Americans believe that if you work hard, you will succeed.
What are the most prosperous in the world:
5. New Zealand
What are the most prosperous economies:
9. Hong Kong
Which is best managed:
2. New Zealand
European Commission (EC) has launched an inquiry against Bulgaria because of the introduced in mid-September by the energy regulator so called 'access fee' to renewable energy producers. This was announced by chairman of the 'Bulgarian Wind Energy Association' Sebastian Noethlichs during a round-table on the problems and challenges facing the production of electricity from renewable energy sources. It was attended by representatives from both the sector itself and a number of ambassadors and representatives of the banking sector.
Verification of the EC started in connection with the complaints filed by the associations in the sector due to a charge, which takes between 1 and 40% of the revenues of green plants. Against the decision of the regulator, the case was filed in the Supreme Administrative Court. Later, the minister of economy and energy Delian Dobrev said that he has no information about the launched inquiry, but would not explain why the fee was introduced in a first place. Himself, Dobrev and President of the regulatory body, Angel Semerdzhiev were strangely unwilling to maintain a dialogue with the renewables industry as they, or their representatives did not attend the event, despite the invitation.
During the discussions, the lack of dialogue with the institutions was highlighted as one of the major issues facing investors in the country.
Effects of the 'Access fee'
Sebastian Noethlichs presented data showing that with the introduction of the fee, renewable energy project with a capacity of up to 200 kilowatts will have pay off time between 21-25 years. In larger projects over 5 MW of these terms are 23 to 30 years. Such return does not meet the conditions agreed with the banks and these projects are actually in bankruptcy. Mr. Penkov from Solarvision also presented their calculations, according to which the deficit for green energy in the system for the period July 2012 - July 2013 would be 200 million lev, and the funds collected from the access fee will total less than that amount. This does not mean that this shortfall will be covered, as the deficit is formed in supply companies, and access fees collected by the electricity companies. Even under the umbrella, these companies can not pass it on their costs and revenues, as this would be cross-subsidizing them.
According to Mr. Penkov the caused deficiency is apparently due to erroneous methodology for calculating of the prices and margins by the regulator. Solarvision's calculations, in addition to the green margin calculations, however, have demonstrated that another deficit of 300 million lev will accumulate with the highly efficient co-generation power production. This means that the allowance that all users pay for this energy will be sufficient to pay the total amount of electricity produced from heating companies. While with the green energy production is attempted the deficit to be covered by the 'access fee' with the co-generation installations this can be done only by an increase in the allowance, which will lead to a hike in electricity price for consumers.
The effects on the business environment
"We do not want to interfere with the discussion about electricity prices, but we want predictability so we can do our job," said the CEO of UniCredit Bulbank Levon Hampartzoumian. "In good years the otherwise scares capital available for the business in Bulgaria, can provide economic growth of 1-2%. If we want more growth, foreign capital should come to Bulgaria, and it is interested to do so, if it can make profits." he added.
Ambassadors who attended the event, also expressed concern about the unpredictable business environment that is created in Bulgaria. Ambassador to South Korea Cheng Bi - Ho said he hoped that the government will decide to not discriminate against renewable energy sector.
Chinese manufacturer of electric vehicles and electric buses 'Build Your Dreams' (BYD) is interested in partnership with the Metropolitan Municipality and to invest in future technology park near Bozhurishte, which is expected to attract Bulgarian and foreign high-tech companies.
The announcement came from the industrial cluster "Electric Vehicles" after the visit to Bulgaria by the general manager of BYD Europe Yangping Chen. In addition to representatives of the cluster, the Chinese manager had a meeting with the Executive Director of "Capital Autotransport" AD Slav Monov with whom they discussed the possible import of vehicles for environmental Sofia.
The offer of the Chinese company is to prepare a business case for the introduction of a test line elektrobuses upon which Bulgarian managers to guide their future strategies for greening transport in cities.
With the commissioning of an electric bus economies of operation shall be paid for 4-5 years, experts explained the Bulgarian cluster. According to them, the advantage of applying these buses is that their full operation without replacing the battery for a period of ten years, which means that more than five years they will run without the municipality to has to pay for charging them with gas or liquid fuels.
As well as a manufacturer of electric Chinese company BYD is the exclusive provider of global mobile giants like Nokia, Motorola and Samsung. The Chinese hold half the global market for batteries for mobile phones.
In recent years the company has an active presence in the European market and develop business with partners from the UK, Netherlands, Switzerland, Hungary and others.
At best, peripheral countries of the eurozone have completed the restructuring of economies in half revealing report Moody's Investors Service, quoted by Bloomberg.
Economic imbalances that caused the debt crisis are still there and that is why structural reforms must continue, says the analysis of the rating agency.
"Adjustments, both in the periphery and in the core of the Eurozone, are occasionally sensitive," says a report published today by the agency. "The process, however, at best is half finished."
Politicians from affected peripheral countries are trying to restructure their economies to generate growth, they need to pay their debts. The European Union (EU) and International Monetary Fund (IMF) offered support to Greece, Ireland, Portugal and Spain for at least 393 billion.
Moody's reported some progress in terms of trade balance and competitiveness of labor, but stresses that governments can not afford to delay reform. The report does not mention credit ratings of individual countries.
"The crisis that Sweden and Finland have experienced in the early 90's, taught us that solving the imbalances caused in most cases by credit bubbles in the private sector, may take several years," says the report. "Structural reforms are essential to achieving sustainable results."
Since the crisis the price of labor in Spain is down 5.9% and in Greece - by 7.8%, while in Ireland - by 13.7%. This helps exports and economic growth at a time when governments are trying to implement budget savings.
So far Italy has not managed to reduce its trade deficit by adjusting the price of labor and higher competitiveness.
"Improving the competitiveness of peripheral countries of the euro zone is mainly due to improved efficiency due to the fact that employment decreases faster than production levels," said the analysis.
Federal and state prosecutors are investigating U.S. German Deutsche Bank (Deutsche Bank) and several global banks for alleged illegal cooperation with Iran in violation of U.S. sanctions, said in it's publication the newspaper "New York Times" quoted by AFP, on Monday.
U.S. authorities suspect that the Bank has made billions of transactions on behalf of Iranian entities through its branches in the U.S. between now and 2008. Ministry of Justice of the United States said that the investigation is in early stage and at this time there is no reason to believe that the bank violated U.S. law since 2008.
A spokesman for Deutsche Bank declined to comment on the inspection, noting, however, that early in 2007 the management of the financial institution has decided to give new contracts with partners from countries such as Iran, Syria, Sudan, North Korea, already concluded to be limited as far as possible.
European Commission (EC) will offer in September, the European Central Bank (ECB) to take over supervision of key financial institutions in the euro area, Reuters reported, citing a publication in the German newspaper Handelsblatt.
Envisaged under the supervision of the ECB to move the German savings banks and cooperative banks, for which Germany hoped that would not be so strictly controlled.
The German edition, which relies on anonymous sources familiar with, the EC will propose national regulators continue to monitor the operation of banks in their respective countries and the ECB to intervene only in extreme cases, when he sees "serious risks".
In countries outside the euro area banking supervision will continue to be made by national regulators.
The agency reminds that the EU leaders agreed at the end of June to create a single banking supervision in the euro area as a condition for direct recapitalization of banks with funds from the rescue fund community currency.
German newspaper, however, indicate that the ECB may need to begin to control all banks in the euro area, not just the biggest.
"It is difficult to determine which bank is a major bank, so you must ensure that a future EU banking supervisory system will be able to cover all financial institutions," said Steffan de Rink, a spokesman for the Financial Services Commissioner Michel Barnier which has prepared the proposal.
Commission is also examining opportunities outside the euro area countries also engage in the banking union, and to supervise insurers, who often sell their products through banks.
Due to overexploitation groundwater water supplies worldwide are being depleted at a faster pace than can be recovered, warn scientists from Canada and the Netherlands.
Scientists from McGill University in Montreal and Utrecht have developed computer models of global groundwater resources with which compared the operation and recovery.
Tom Gleeson from the University of McGill, who led the research, notes that about 99% of freshwater supplies in the world who are not in the form of ice, are underground. The scientist says that these peculiar water tanks will be crucial for the growing population of the Earth, long to be managed properly.
The survey results indicate, however, that 80% of aquifers in the world are used incorrectly, and in several regions has been established and over-exploitation. The exposed regions are Western Mexico, Central California, Saudi Arabia, Iran, northern India and parts of North China.
Statistics show that 1.7 billion people, mostly in Asia, live in areas where groundwater reserves and ecosystems that rely on these stocks are at risk.
Tom Gleeson said that underground supplies of water are vital to agriculture. He stresses that these are resources that need better management.
According to the teachings problems can be solved by introducing a constraint on the extraction of water from aquifers and improving the efficiency of irrigation.
British researchers also published a few months ago a scientific report on underground reserves of water. They located the enormous amounts of water in large areas in Africa that could serve as a buffer against climate change, if used sustainably, news agency notes.
British scientists have found that the volume of groundwater reserves in Africa amounted to about 100 times the size of the continent, and some of the largest reservoirs are in Libya, Algeria, Egypt and Sudan.
The government of Bulgaria approved at its meeting today, signed in June 2011 agreement to support the project "Nabucco" pipeline. The contract is between Bulgaria, "Nabucco Gas Pipeline International" GmbH and "Nabucco Gas Pipeline Bulgaria" Ltd., announced the government's press office. The cabinet asked the National Assembly to ratify the document, then it will enter into force.
Bilateral agreement to support the international company "Nabucco" is responsibility of each State Party to the Intergovernmental Agreement of Austria, Bulgaria, Hungary, Romania and Turkey on the project to build a pipeline system is specified in the reasons for approving the agreement.
With its Member commitment to supporting the project by creating and maintaining favorable legal and regulatory environment for companies involved in it.
The purpose of this support agreement is detailing the arrangements of the project "Nabucco" in Bulgaria, said in the message.
The agreement was signed by Minister of Economy and Energy Traicho Traikov in Turkey on behalf of the Bulgarian state. It was a political support for the new pipeline.
In essence, the agreements are bilateral between companies and shareholders in the project between each of the governments of transit countries.