Issue 4, 2006

The development of an overall vision for making an adequate macroeconomic policy in perspective involves the localisation of possible sources of economic tension, as well as the relevant fields of tension in the context of the specific macroeconomic objectives. An attempt has been made to outline basic types of potential tensions in the Bulgarian economy in the mid-term perspective and to formulate recommended versions of macroeconomic policy. The analytical study is targeted at defending strategic principles of behaviour of the macroeconomic policy in contract to the construction of tactical practices for achieving given short-term objectives. The whole analysis and recommendations are in the spirit of the liberal economic doctrine and especially the understanding that the main macroeconomic policy instruments are (unpretending any hierarchic order) in the field of budgetary and monetary impacts and the development of a well-functioning institutional environment.

JEL: E61; E63

The state, resources and prerequisites for the employment growth in Bulgaria have been outlined. Approximate calculations of annual increases in the number of employed in the near future have been made with a view to the achievement of the generally accepted aims of the EU member states. Emphasis is put on the changes in the quantity indicators and the coefficients of employment, economic activity and unemployment.
Possibilities for raising the number of employed through decreasing that of unemployed have been examined, as well as the growth in employment of at risk groups on the labour market such as women, youth, and elderly. General socio-economic and political prerequisites for employment growth have been presented in detail. The basic parameters of economic growth have been pointed out. It is proven that growth is still not a sufficient condition for an increase in employment. The sector structure of employed has been described in detail, as well as the possible and desired changes; distribution of employed in large, medium and small-sized enterprises and positive perspectives related to restricting the employment in the grey economy.
Basic characteristics of the labour market policies, implemented in Bulgaria, have been presented as a main precondition for improving employment. Directions for changing them in the future have been outlined.

JEL: J21; J23; J64

The reasons for the low innovation activity of Bulgarian enterprises have been examined. The need to develop a long-term national innovation policy and to increase considerably the R&D expenditure has been justified. The main priorities of such policy have been pointed out and specific measures for stimulating innovations in Bulgaria have been proposed. Emphasis is put on the necessity to apply a systematic approach in developing and implementing the innovation policy and its co-ordination with policies of the EU member states.

JEL: O31; L53

The regulation of investments of pension funds has been considered as an element of the overall regulation of their activities. Different aspects of the main principles, on which the investment restrictions are based, have been characterised - the prudent investment principle and the principle of quantity restrictions. The legal framework in Bulgaria has been analysed from this point of view and the necessity for its amending has been justified. Based on a brief analysis of Bulgarian regulatory practice, some unsolved issues have been outlined.

JEL: J26; F21

The return on investment has been considered in its two main aspects - rent yield and capital gains as a difference between the purchase and sale prices of the real estate. Four basic criteria have been used to evaluate both the returns on rent and re-sale of the real estate. Prospects of the real estate market have been outlined in the context of the forthcoming EU accession and the entering of foreign institutional investors into the market.

JEL: G21; R21; R31