Doing Business Reform Memorandum

Bulgaria experienced strong economic
growth prior to and shortly after joining the European Union
(EU) in 2007. Under the better regulation program, the
government adopted over 100 measures to reduce the
regulatory and administrative burden, but no formal
mechanism was introduced to regularly monitor and review its
implementation at the national or municipal level. Some
areas, in which entrepreneurs expected to see improved
efficiency, actually saw setbacks. The time needed to get a
construction permit, import license, or operational license
almost doubled between 2008 and 2013, and senior managers of
firms reported that they were spending more time, 22 per
cent in 2013 , dealing with public officials or public
services than in 2008, when it took 14 per cent of their
time. The final diagnostic study considered in this memo is
the Doing Business report, which is also the basis for the
reform recommendations presented in the document. According
to last year’s Doing Business report, business regulation in
Bulgaria varies significantly across the areas measured.
Bulgaria is among the global top 50 performers in 4 of the
10 areas, specifically, protecting minority shareholders
(14th), getting credit (23rd), resolving insolvency (38th),
and starting a business (49th). Bulgaria‘s performance lags
behind in four areas, getting electricity (125th), dealing
with construction permits (101st), paying taxes (89th), and
enforcing contracts (75th).