Income distribution

The national minimum wage in Bulgaria is BGN 380 as of July 1, up from BGN 360 (EUR 180).

With the move approved earlier this year - but unsuccessfully confronted by businesses - the government hopes to boost domestic consumption.

This puts the net income BGN 12 above what national statistics describe as the "poverty threshold" in Bulgaria.

By Thanos Tsiros

Value-added tax rates have been raised three times since 2010, all within the space of one year: in March and July 2010 and then in January 2011. The hike that the government is negotiating with the country?s creditors will be the fourth in five years.

Bulgaria's government has adopted a decree confirming the minimum wage rate of BGN 360 as of January 1, 2016 and the planned hike to BGN 380 as of July 1, 2016.

The decree comes in response to the motives presented in the ruling of the Supreme Administrative Court (VAS) from May 20.

The minimum wage in Bulgaria will increase by BGN 16 starting July 1 and will thus slightly surpass the country's estimated poverty line.

Upon all taxes and insurances are paid, the current minimum wage reaches BGN 282. Starting July 1, the amount will increase to BGN 298, as stated in the report presented by Labor Minister Ivaylo Kalfin.

Romania has signed on Thursday the agreement with the United States of America for the improvement of the international tax compliance and the implementation of the FATCA (The US Foreign Account Tax Compliance Act) measures, a document that involves an automatic mutual exchange of information between the two states' tax authorities referring to the financial bodies' activity, a release sent to

Prime Minister Ahmet Davuto?lu has criticized Turkish business leaders for being silent over opposition parties? ?unrealistic? economic promises, speaking a special meeting late on May 25, a source familiar with the gathering has told the Hürriyet Daily News. 

Bulgaria's Deputy Prime Minister and Social Policy Minister Ivaylo Kalfin is convening a meeting of the National Council for Tripartite Cooperation (NCTC) on May 26 on the minimum wage level in 2015.

Negotiations between Greece and its lenders are due to resume via the Brussels Group on Tuesday.

The two main issues that the technical teams have to tackle are value-added tax and pension reform.

On VAT, the institutions propose that there should be two rates, one at around 23 percent and another at 10. Greece has proposed three rates: 23, 14 and 7.

Greece has emerged as a champion in inequality among the member-states of the Organization for Economic Cooperation and Development (OECD), whose most recent report found that across its 34 member-states inequalities in general became more acute last year.

By Nikos Konstandaras