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Analysis:Analysis:

The Lost TouristsThe Lost Tourists

Fuel Prices PlayFuel Prices Play

Member News:Member News:

Ernst & Young: Ernst & Young: FDI into Europe FDI into Europe Hits a New Hits a New RecordRecord

UniCredit UniCredit Hosts Sofia Hosts Sofia Transformations Transformations ExpoExpo

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The Migrant CrisisThe Migrant Crisis

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Wouldn’t it be great if we could devote this first post-vacation issue of the year to the departing summer, to our oncoming fall work and the expecta-tions of a positive business balance for your companies? For better or worse, though, we live in the European Union, which is facing one of its largest public crises after the Second World War: the Refugee Wave (read Boyko Vassilev’s opinion on Page 8 and a historical review by Reuters on Page 4).

Tens of thousands of refugees from conflict zones in Africa and Middle East have come knocking at the doors of the EU, looking for salvation, shelter and a better future. For the first time in decades the Union has no common solution for such a serious issue. Immigrant quotas that the European Commission has tried to request have been met with disagree-ment from member countries. The better-off Eastern Europeans have no desire to accept refugees, while the poorer ones – like Bulgaria – at least officially do not object, but have no means to do much. Just this year Italy and Greece have seen some 430,000 migrants from Syria, Eritrea, Iraq, Afghanistan, Somalia, Gambia, Nigeria, among other countries. The majority plan to continue north; however, an initially welcoming Germany and well-wishing Scandinavians cannot accept the entire refugee flow – and is this the solution anyway?

Perhaps it is time for the EU to revive the so-called humanitarian passport of the United Nations, known from the 1950s and 1960s. This used to be a blue document with the UN’s logo on the cover, photo and information about its holders inside, which allowed thousands to move around the world after wars, crises and political repressions.

Nowadays we can have a EU humanitarian passport with all the requisite data including biometrics, but most importantly with the EU country that will be considered a refugee’s host, his or her new homeland. This will allow for easier and safer transportation across the continent (by train or plane, not by foot or via the dangerous, deadly trucks); it will limit fraud and help reuniting families. It will make the refugees feel accepted, it will give them the sense that they are safe and welcome. It will enhance their integration into the EU societies.

Some among you may object that this is an undemocratic measure, a group labeling of sorts. Is it more democratic to leave downtrodden and forlorn victims of war and misfortune to wander around like scared animals? Or line up against the barbed wire on yet another border? What if the more impatient countries in the EU get fed up with the unrelenting crisis and start large-scale deportation operations?

Think about it.

Sincerely,

Milen MarchevEditor-in-Chief

Dear Reader,

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Publisher American Chamber of Commerce in BulgariaBusiness Park Sofia, Mladost 4 AreaBuilding 2, Floor 6, Sofia 1766, BulgariaTel.: +359 (2) 9742 743Fax: +359 (2) 9742 741e-mail: amcham@amcham.bgwww.amcham.bg

Editor-in-ChiefMilen Marchev

Deputy Editor-in-ChiefChristopher Karadjov

Senior Editor:Irina Bacheva

ISSN 1312-935X

Writers:Boyko Vassilev, Marina Tzvetkova, Mina Georgieva, Panayot Angarev, Yuliana Boncheva

AdvertisingAmCham Bulgaria: Nadejda Vakareeva, nadia@amcham.bg

AmCham Bulgaria Magazine:Milen Marchev, milen@milenmarchev.com

The AmCham Bulgaria Magazine reaches a broad audi-ence of AmCham members, leading US, Bulgarian and international companies, US and Bulgarian decision-mak-ers, all AmChams around the world.Subscription is free of charge. If you would like to sub-scribe to AmCham Bulgaria publications, please contact the AmCham Bulgaria office.

AmCham Bulgaria Magazine is a primary forum for political and economic analyses, news, viewpoints as well as for the presentation of new business opportunities. The articles in the AmCham Bulgaria Magazine express the opinions of the authors and do not necessarily reflect the position of the American Chamber of Commerce in Bulgaria.

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Contentsc o v e r s t o r y

The Migration Debate . . . . . . . . . . . . . . . . . . . . . 4

By Anne Hammerstad, REUTERS

EXODUS: The Refugee Crisis Sets

Difficult Questions for Europe and Bulgaria . . . . . . 8

By Boyko Vassilev

a n a l y s i s

Seaside Woes of Season 2015:

Dubious Cleanliness

and Closed Beaches . . . . . . . . . . . . . . . . . . . . .12

By Marina Tsvetkova

Will Cheap Oil Stumble Bulgarian Plans

for Domestic Production? . . . . . . . . . . . . . . . . . .16

By Investor.bg

n e w m e m b e r s . . . . . . . . . . . . . . . . . . . . .17

Auxionize

Bojinov & Bojinov

DA TRAVEL

Garitage Investment Management EOOD

Holzindustrie Schweighofer EOOD

Siemens Healthcare

Sterling Serviced Office Group

The National Network for Children

m e m b e r n e w s

Telus International �urope

Invests €40,000 to Renovate the

Louis Braille School . . . . . . . . . . . . . . . . . . . . . .19

Cruise Agency CONTITRANS M Ltd.

Presents Azamara Club Cruises® . . . . . . . . . . . . .20

Western Europe Overtakes China and

North America as #1 Investment Destination

with FDI Projects at Record High . . . . . . . . . . . . .21

Walltopia Welcomes New Minority

Investors in the Company . . . . . . . . . . . . . . . . . .23

UniCredit Studio Hosts Sofia Transformations

Expo and Brings to Life History of Sofia City . . . . . .24

3M Bulgaria EOOD . AA KRES EOOD . Abbott Products EOOD . AbbVie EOOD . Actavis Bulgaria EAD . Adecco Bulgaria ltd. . ADM Bulgaria Trading EOOD . Advance International Transport EOOD . AES Corporation . AFA OOD . AGORA-IN Ltd. . AIG Europe Limited (Bulgaria Branch) . AIMS Human Capital . Albena AD . ALD Automotive OOD . All Channels Communication . Alliance One Tobacco Bulgaria . Allied Pickfords Bulgaria . Alpha Bank Bulgaria . America for Bulgaria Foundation . American College of Sofia . American English Academy . American Research Center in Sofia . American University in Bulgaria (AUBG) . Amgen Bulgaria EOOD . Amway Romania Marketing Srl. . Anglo-American School of Sofia . AON Bulgaria . APOLO Ltd. . Architect Nikolay Mihaylov Galabov . Arexim Engineering . Ashtrom International Ltd. . ASSESS Ltd. . Association Srednogorie Copper Industrial Cluster . Astra Zeneca Bulgaria EOOD . AT Engineering 2000 Ltd. . Atlantic Club Bulgaria . Atos IT Solutions and Services EOOD . Attica Media Bulgaria Ltd. . August Research . Aurubis Bulgaria AD . Auto Bavaria Ltd. . Auxionize . AVON Cosmetics Bulgaria . AW-Tronics LLC . Axway Bulgaria EOOD . Baker Tilly Bulgaria . Balkan Star Automotive EOOD . Ballistic Cell Ltd. . Baxter Bulgaria EOOD . BG Radio . BICA International Ltd. . BMG Ltd. . BMW Vertiebs GmbH - Branch Bulgaria . BNP Paribas S.A. - Sofia Branch . Bojinov & Bojinov . BOYANOV & Co. . Braykov's Legal Office . British American Tobacco Bulgaria . Brown-Forman Bulgaria Ltd. . bTV Media Group . Bulgarian American Enterprise Fund . Bulgarian Charities Aid Foundation (BCAF) . Bulgarian Executive Search Association . Bulgarian Property Developments EOOD . Bulgarian-American Commission for Educational Exchange Fulbright . Bulgarian-American Credit Bank . BulPros Consulting JSC . Bulstrad Life Vienna Insurance Group . Business Intellect Ltd. . Business Park Sofia EOOD . C3i Europe EOOD . CAD R&D Centre Progress Ltd. . Carat Bulgaria . Castello Precast OOD . Center for the Study of Democracy . CEZ Bulgaria EAD . Chaos Software ltd. . Cheque Dejeuner Bulgaria Ltd. . Cisco Systems Bulgaria . Citibank Europe Plc, Bulgaria Branch . CMS Cameron McKenna LLP - Bulgaria Branch . Coca-Cola Enterprises Services Bulgaria EOOD . Coca-Cola HBC Bulgaria AD . Coface Bulgaria Credit Management Services EOOD . COLLIERS International Bulgaria . Comverse Bulgaria . Congress Engineering Ltd. . Construction Management Group . Contitrans M Ltd. . ContourGlobal Maritsa East 3 AD . Curtis / Balkan Ltd. . DA TRAVEL . Dalkia Bulgaria EAD . Danailov, Drenski, Nedelchev & Co. . Delchev & Partners Law Firm . Deloitte Bulgaria EOOD . denkstatt Bulgaria OOD . Deutsche Bank AG . Devin AD . DHL Express Bulgaria Ltd. . Diamed Ltd. . Dimitrov, Petrov & Co. . Djingov, Gouginski, Kyutchukov, & Velichkov . Dobrev & Lyutskanov Law Firm . Dr. I.S. Greenberg Medical Center . Drujba Glassworks SA . Dundee Precious Metals Inc. . DuPont Pioneer . EcoPack Bulgaria AD . Edenred Bulgaria . Ekoterm Proekt EAD . Ekotoi - Service Ltd. . Ekzotika EOOD . EL-A-Project Ltd. . Electron Progress EAD . Eli Lilly and Company . Eltrak Bulgaria Ltd. . EMC Computer Systems Austria GmbH . Emerson Process Management . EnergoService AD . Engineeringservice Sofia Ltd. . Enterprise Communications Group OOD . EOS Matrix Ltd. . EPAM Systems Bulgaria . EQE Control OOD . Ernst & Young Bulgaria EOOD . ESRI Bulgaria Ltd. . Etap Adress . Eurobank Bulgaria . Eurohold Bulgaria . European Bank for Reconstruction and Development (EBRD) . European Trade Center EOOD . Evrika Commerce Ltd. . EVS Translations Bulgaria . Expat Capital . Experian Bulgaria EAD . FairPlay International . Fama Consulting OOD . Flying Cargo Bulgaria Ltd. - Licensee of FedEx . Force Delta Ltd. . Forton AD . Foundation Glob@l Libraries - Bulgaria . GAEA - Green Alternative Energy Assets EAD . Galardo Real Estate . Garitage Investment Management EOOD . Gasstroymontaj Jsc . General Electric International . Georgiev, Todorov & Co. . Geostroy AD . Geotechmin OOD . Geotrading AD . Gi Group . GIFTA . Grand Hotel Sofia . GSK . GTC Bulgaria . Harley-Davidson Sofia . Helios Power Jsc . Hewlett-Packard Bulgaria Ltd. . Hilton Sofia . Holzindustrie Schweighofer EOOD . Honeywell EOOD . Hydroenergy Company JSC (HEC) . IBM Bulgaria . ICAP Bulgaria JSC . IDC Bulgaria . Ideal Standard - Vidima AD . Incotex Group Ltd. . Industrial Holding Bulgaria . INFORMA . InterConsult Bulgaria Ltd. . Interdean Relocation Services . Interlang Ltd. . Intertek BA . Intracom Bulgaria EAD . Investbank JSC . Investor BG AD . IP Consulting Ltd. . Japan Tobacco International Bulgaria . Jobs.bg EOOD . JobTiger Ltd. . Johnson & Johnson Bulgaria EOOD . Junior Achievement Bulgaria . Kalamaris Group . Kaliakra AD . Kamenitza AD . Katilin Popov Enforcement Officers . Kempinski Hotel Grand Arena Bansko . Kempinski Hotel Marinela Sofia . Kinstellar Sofia Branch . KPMG Bulgaria OOD . LANDMARK Property Management AD . Lexim Sofia Co. Ltd. . Lindner Immobilien Management EOOD . Lirex BG Ltd. . M3 Communications Group, Inc. Hill+Knowlton Strategies Associate . Maria Vranovska, MD, MBA . Mars Incorporated Bulgaria EOOD . Marsh LLC. . MBL| Part of the CBRE Affiliate Network . Megatron EAD . Mellon Bulgaria EAD . Merck Sharp & Dohme Bulgaria . MetLife Europe Ltd. - Bulgaria Branch . Microsoft Bulgaria . Miltech Ltd. . Minstroy Holding Jsc . Mobiltel EAD . Monbat Plc. . Mondelez Bulgaria AD . Moten Sport . Moto-Pfohe Ltd. . Mr. Alex Nestor . Mr. David Hampson . Mr. Jean Talmon . Mr. Nikolay Ouzounov . Ms. Anelia Tatarova . Ms. Gergana Valova . Ms. Kalinka Kovatcheva . Ms. Margarita Radeva, CPA . Municipal Bank Plc . Musala Soft AD . NDB Ltd. . Nemetschek Bulgaria . NEXTDOOR Ltd. . Novacon Bulgaria Ltd. . Novotel Sofia . Nu Boyana Film Studios . On Bulgaria Ltd. . Oracle East Central Europe Limited - Branch Bulgaria . Orak Group Europe Ltd. . Orbit Ltd. . Panchim Ltd. . PANDA - IP Ltd. . Pedersen & Partners . Penev LLP . Penkov, Markov & Partners . Pfizer Luxembourg SARL Branch Bulgaria . Philip Morris Bulgaria EOOD . Philips Bulgaria Ltd. . PPD Bulgaria EOOD . Premier Luxury Mountain Resort . Premier Tours Ltd. . Prestige 96 AD . Provident Financial Bulgaria Ltd. . PSG Payroll Services Ltd. . PwC Bulgaria . Quintiles Bulgaria Ltd. . Radisson Blu Grand Hotel . Raiffeisen Investment Bulgaria EOOD . Red Devil Catering Plc . Regus Bulgaria Ltd. . Renault Nissan Bulgaria SRL . Right Rental Ltd. . RSM BX Ltd. . S&T Bulgaria EOOD . Sanofi - Aventis Bulgaria EOOD . Sb Accounting and Consulting . Schenker EOOD . Schneider Electric Bulgaria . SECTRON . Sensata Technologies Bulgaria EOOD . Shell Bulgaria EAD . Sherita M Ltd. . Siemens EOOD . Siemens Healthcare . SIENIT Holding . Silver Ridge Power . Sitel Bulgaria EOOD . Sodexo Pass Bulgaria EOOD . Sofia Hotel Balkan . Sofita Translation Agency . Sogelife Bulgaria IJSC . Sopharma AD . Sopharma Trading JSC . Sportal.bg JSC . Stanton Chase International Bulgaria . Stefan Dimitrov, Norman Realestate Co. Ltd. . Sterling Serviced Office Group . Sunfoods Bulgaria EOOD - Development Licensee of McDonald’s in Bulgaria . Sutherland Global Services Bulgaria EOOD . Synchron-S OOD . Tavex EOOD . TBI Bank EAD . TechnoLogica EAD . Telelink EAD . TELUS International Europe . The Coca-Cola Company Bulgaria . The National Network for Children . Tishman Management Company EOOD . Titan Zlatna Panega Cement . TMF Services EOOD . Tocheva & Mandazhieva Law Office . UniCredit Bulbank . UniCredit Leasing EAD . Unimasters Logistics Plc . Unique Estates . United Bulgarian Bank . Videolux Holding / Technopolis . VISA Europe . Visteon Electronics Bulgaria . VIVACOM . VMware Bulgaria EOOD . VSK Kentavar - IZ Dinamika EOOD . VUZF University Higher School of Insurance and Finance . Walltopia Ltd. . Welcome to Bulgaria . Westinghouse Energy Systems Bulgaria Branch . World Courier Bulgaria Ltd. . World Transport Overseas Bulgaria Ltd. . WorleyParsons Nuclear Services JSC . Wrigley Bulgaria EOOD . Xerox Bulgaria Ltd. . Xogito BG Ltd. . Yastrebets Hotel Wellness & SPA . Yatoto . Zlatina Ruseva-Savova, LL.M., MBA . Zobele Bulgaria EOOD .

Board of Directors of the American Chamber of Commerce in Bulgaria

President Ms. Krassimira Chemishanska Amgen Bulgaria

Vice President Mr. Alex Nestor Individual Member

Treasurer Ms. Petya Dimitrova Eurobank Bulgaria

Members Mr. Plamen Zhechev Cisco Systems Bulgaria

Mr. David Butts CMS Cameron McKenna EOOD

Ms. Diana Pazaitova Fama Consulting

Mr. George Brashnarov Nemetscheck Bulgaria

Mr. Peter Lithgow Individual Member

Mr. Sergey Koynov Forton International

Mr. Solomon Passy Atlantic Club Bulgaria

Mr. Venislav Yotov AIG Europe Limited (Bulgaria Branch)

Ex-Officio Member Ms. Maria Galindo Senior Commercial Officer, U.S. Embassy

Executive Director Mr. Valentin Georgiev

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We have been here before. Hundreds of thousands of people fleeing in rick-ety boats, many of whom perish at sea as regional governments avoid search and rescue efforts in fear of their “pull factor.” Conditions at arrival made unwelcoming in order to deter others from attempting the journey. Still people continue to come.

In the two decades following the United States’ withdrawal from Vietnam in 1975, three million people fled the com-munist regimes of Vietnam, Cambodia and Laos. More than one million were boat people.

A different sea and a different time, but the Indochinese refugee crisis has les-sons to offer for today’s Syrian exodus. Refugees are crossing the

Mediterranean in dinghies, fishing boats and even steel-hulled ships, and struggling through southern and east-ern Europe on foot, bicycles, buses and trains. They follow the same migration routes as asylum seekers from other nasty parts of the world, as well as eco-nomic migrants from sub-Saharan Africa. According to the UN Refugee Agency, UNHCR, Syrian refugees account for 53 percent of the nearly 400,000 illegal arrivals by sea to Europe so far in 2015.

The Indochinese refugee crisis was resolved in great part through resettle-ment, agreed to and executed by a broad coalition of countries. Like today, it took media attention on the countless tragedies at sea — coupled with seri-ous political backlash and humanitarian

crisis in host states such as Malaysia, Thailand and Indonesia — before gov-ernments overcame their urge to pass the buck and look away.

Overcome it, though, they did. During an 18-month period beginning in January 1979, the world, led by the United States, resettled 450,000 Indochinese refugees. By the late 1990s, one million had begun new lives in the United States, 400,000 of whom were boat people. Large numbers of refugees went to France, Canada, Australia, and other countries as part of the resettlement agreement dubbed “Open shores for open doors.”

There are many modern-day examples of large-scale refugee resettlement. Hungarians fleeing after the 1956 upris-

The Migration DebateLessons for dealing with today’s migrant crisis from the last one

By Anne Hammerstad, REUTERS

Migrants arriving from Hungary are seen in Nickelsdorf, Austria, 10 September 2015. The Austrian railway company Osterreichische Bundesbahnen (OBB) temporar-ily ceased to operate trains between Budapest and Vienna due to overburden. Migrants arriving to Austria will be transported from the Austro-Hungarian border to Vienna by buses and trains allocated for this purpose.

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ing, and Kosovo-Albanians “ethnically cleansed” during the 1999 Kosovo war, benefitted from swift, organized reset-tlement of a significant proportion of the refugees in order to alleviate the humanitarian and security concerns of countries of first asylum. Between April and June 1999, NATO airlifted 86,783 Kosovo Albanians to 30 different coun-tries, mostly in Europe and North America.

But times have changed. Faced with rising and unpredictable numbers of asylum seekers arriving directly at their door, most governments in the rich world have come to view resettlement as an avoidable burden rather than a useful tool of refugee protection.

Only a tiny fraction of the world’s refu-gees today are resettled, while vast refugee populations languish for years and decades in refugee camps, such as the Dadaab settlements for Somali refugees in Kenya, and Zaatari, home to around 80,000 Syrian refugees in Jordan.

There are some good arguments against resettlement. The ideal is, of course, that refugees should one day return to their home countries. Until that day, it could be argued that they are best looked after close to their own country, due to cultural and social affin-ities, for cost reasons, and because proximity would make them better able to judge when it is safe to repatriate.

Sometimes, though, large-scale reset-tlement is necessary. There is no end in sight to the Syrian conflict. The reset-tlement of a relatively small, but signifi-

cant proportion of Syrian refugees would alleviate the chaotic scenes played out across Europe. It would help stabilize and support Turkey, Lebanon and Jordan, all creaking under the pressure of the refugee influx. And it would reaffirm the principle, established after the horrible failings of World War Two, that all states have a joint respon-sibility to provide refuge for people flee-ing war and persecution.

There are today over four million Syrian refugees worldwide. Over 90 percent have gone no further than just across the border. Turkey hosts 1.9 million refugees, Lebanon 1.1 million — a quarter of the country’s population — and Jordan is home to 630,000 Syrians.

Until this year, because it was locally contained, it was possible for the rest of the world to pay little attention to the unfolding refugee crisis. Most fleeing

Syrians arrived with some savings with which to pay rent and an education that could, with luck, win them a job. Others had the option of getting food and health care in a refugee camp.

But the war is now in its fifth year. There are many more refugees, they are less welcome in their host states, those refugees who had savings have depleted them, and there is less humanitarian aid available per refugee in need. The UN has received 37 per-cent of the funds needed for the 2015 humanitarian program for Syria’s dis-placed: money that goes to run refugee camps, and to provide food or food vouchers, health care and education both within the camps and to the many more who have settled in urban areas such as Jordan’s capital, Amman. UNHCR’s budget is 10 percent lower than last year, leaving the High Commissioner for Refugees, Antonio Guterres, to declare that “we are

Migrants in Hungary walking in direction of the Austrian border with their wishful final destination – Germany.

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broke.”

Refugees themselves, having used up their savings, are getting into crippling debt. Their rent and costs of living in Syria’s neighboring states have increased dramatically in the past year. A recent study by UNHCR showed that 70 percent of Syrian refugees in Lebanon are now living far below the poverty line.

As needs have risen, the humanitarian system has not been able to cope. The World Food Programme just announced to 229,000 refugees in Jordan that they would no longer receive food vouchers due to funding cuts. At least 700,000 Syrian refugee children are going with-out an education, according to UNHCR.

But there is no safe and legal way for a Syrian refugee to travel to Europe — or to any other part of the world, for that matter. They have to resort to the peril-ous aid of people smugglers and, as a

result, are transformed from refugees to “illegal immigrants.”

Studies of Vietnamese refugees reset-tled in the United States show that those who had experienced traumatic and dangerous journeys by boat found it harder to integrate into their new, “normal” lives than those who had ben-efited from the Orderly Departure Program. For everyone’s sake, then, Syrian refugees need safe and legal ways to travel to countries where they can restart their lives and educate their children.

We need a comprehensive resettle-ment program for Syrian refugees in Turkey, Lebanon, Jordan, Egypt and Iraq. Not for all of Syria’s four million refugees, but as a safety valve both for host countries and refugees, coupled with stronger economic and political support to the states at the frontline of this humanitarian disaster. You cannot cut food rations in Jordan and wonder why people are leaving to seek sanctu-

ary further afield.

For such a resettlement program to work, it will take serious negotiations between the frontline states and a broad coalition of resettlement states. The Syrian refugee crisis is not a European problem. The United States, Canada, Australia and other members of the rich world need to step up. The Gulf States need to wake up to their moral obligation.

Germany has in recent days become a shining beacon of hope and decency for Syrian refugees. The governments of the UK, France, Australia and a smattering of other countries suggest they will take in somewhat larger refu-gee quotas. This is a step in the right direction, but unilateral and piecemeal announcements will not do the trick. We need a giant show of global solidar-ity and concerted action. It has been done before. The recent groundswell of sympathy for Syria’s displaced means it can be done again. �

German Chancellor Angela Merkel (C) has a selfie taken with a refugee during a visit to a refugee reception centre in Berlin, Germany, 10 September 2015. Germany can deal with the arrival of hundreds of thousands of refugees without cutting social welfare benefits or raise taxes, Vice Chancellor Sigmar Gabriel said on 10 September, during a debate in parliament on next year`s budget. Germany expects 800,000 asylum seekers this year, four times more than last year and more than any other country in the European Union, which is split on how to deal with the biggest refugee crisis since World War II.

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“Mr. Cameron, summer is over! Now deal with the biggest crisis facing Europe since World War II!”

That is how The Sun summarized the situation about the European refugee crisis. If we have to say it even more directly, in the summer of 2015 it emerged that Fortress Europe was about to fall. It is something like the Biblical Exodus, several catastrophes into one: a moral, political and demographic one.

The moral crisis hits United Europe right into the heart. After World War II, Western Europe – and later Central Europe – united to stop the wars and sufferings on the Old Continent. And if the United States is the new Rome of the imperial order, then Europe had to be the new Athens of wisdom, abstention from force, values and human rights. A utopia

which everybody likes and everybody strives for.

… And which today is bursting under the force of its own attractiveness. Its internal moral feeling cannot stand the sight of the dead Syrian child on a Greek beach, the suffo-cated people in the truck to Austria and the drowned migrants in the sea near Lampedusa. That is too much of a burden for the European public opinion – especially for the German one, which has just cured the wounds of the big wars. Europe is tormented by thoughts: Is it worthy of its own claims? And it is quite unclear if it is going to stand that burden.

Because, purely politically, the situation does not look sta-ble. The right-wing populists were strong enough even before the refugee crisis. A month of tension at the

EXODUSThe Refugee Crisis Sets Difficult Questions for Europe and Bulgaria

By Boyko Vassilev

Martin Schulz (L), the President of the European Parliament, speaks with Commission President Jean-Claude Juncker (R) before the latter delivered his first State of the Union address to the European Parliament in Strasbourg, France, 09 September 2015. The European Union was set 09 September to launch a fresh effort to tackle its migration crisis, including a controversial scheme to redistribute refugees among member states.

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Hungarian borders and railway stations – and Hungary’s Prime Minister Viktor Orban turned into a spokesman of those who had no problem speaking aloud before:

“The supply of immigrants is endless

and if the European Union does not protect its borders, mil-lions will come; there is no end to this. There is a threat that one day the Europeans will become a minority on their own continent.”

Orban wants to tighten border control. According to him it is not Europe but Germany that has a problem. Because most refugees want to go there.

But it is Germany and the strong leadership of Angela Merkel that are the only political hope at present. Merkel, together with the French President Francois Hollande, called on the EU for measures, solidarity and actions. A master of balance, the German chancellor does not admit a compromise with the European values but she does not expect the European institutions to break down either. She says, “If Europe does not cope with the immigrants, it is not the Europe we wanted.”

How is Merkel thinking? It is clear that the so-called Dublin Regulation, which provides for the first countries of entry to bear the burden, does not work: out of 350,000 refugees that had entered Europe by the beginning of September, Greece had taken 218,000 and Italy, 114,000. All those people cannot stay there.

But it is also clear that not all refugees can get to Germany. By the beginning of September the German borders had been reached by 413,000 refugees, less than a third of whom were from Syria. Until the end of the year Berlin is expected to review 800,000 asylum applications and that hides risks even for the powerful German economy with its famed social services. More than 6 billion Euro is said to be needed for that. Consequently, the burden has to be split equally. Great Britain’s readiness to accept 4,000 refugees was one of the first steps in that direction.

Europe, and its tacit leader Merkel, have not surrendered to the crisis. But the demographic dimensions of the problem cannot be ignored. It has been less than five years since the time Thilo Sarrazin wrote “Germany Does Away with Itself”, and Merkel herself has announced

the end of the multicultural model

used until recently as an ideological matrix for integration of the European Muslims. It has been less than a year since Charlie Hebdo and the gloomy prophesies of writer Michel Houellebecq about “Muslim” France. Today Muslims in Germany are more than 5 percent, in France, up to 10 per-cent. In 2010 they were 6 percent in the whole of Europe; the forecast for 2030 is 8 percent.

Measures are needed and they should be long-term ones. As for now the German-French initiative has encouraged the President of the European Commission, Jean-Claude

Juncker, to come up with a new plan. The previous one envisaged the allocation of 40,000 immigrants in the EU countries on a quota basis – and was rejected by many countries, including Spain, which agreed to 32,000 only. Now the question is about 160,000 refugees – and that is a goal, not a reality. Juncker also suggests special European forces and assignment of “secure countries” the refugees from which will be returned home.

A deeper analysis raises the question of what the West did wrong in the Middle East. Russian President Vladimir Putin has a ready answer: of course, the United States is to blame. It has always tried to impose “foreign models” on the Arab states. Quite many opponents of the West are con-vinced of that and the thought is turning into something like an axiom of anti-Americanism.

But let us ask a few questions. The United States was right-fully criticized for waging the second war in Iraq, which toppled Saddam Hussein from power. Yes, that unleashed a series of other events but not a refugee wave to Europe. The refugees set off for Europe after the civil war in Syria, where the United States chose not to interfere. And also, when we hear the statement that dictators are to be pre-ferred to jihadists and that the Middle East was better off with Saddam and the old Assad than with Islamic State, we have to ask ourselves: Wasn’t it the dictators who created Islamic State? In a region of turbulence and revolutions there are neither clear-cut culprits, nor clear-cut recipes.

America should know it is going to be criticized in any case – when it does interfere (Bush) and when it does not inter-fere (Obama). But it is on it, jointly with the European Union, that the responsibility lies to pacify Syria and ensure that at least part of the refugees return home.

In this cocktail, big and small states have equally big prob-lems. Bulgaria makes no exception. In 2013-14 several thousand refugees brought

structural problems

to the light: poor conditions in the accommodation centers, a land border hard to protect, not properly settled issues with Turkey, danger of extremism and populism, inefficient social services. In other words, the refugees were like torches lighting up the dusty closet of unfinished reforms.

By September 2015 Bulgaria had given a refugee status to 12,800 people out of a total of 17,000 people detained on Bulgarian territory; for the whole year 2014 the number was 12,700. The trend towards an increase is clear. Nevertheless, in the summer of 2015 Bulgaria seemed to remain in the background: the big drama unfolded along the lines of the Greek islands – Macedonia – Serbia – Hungary – Austria – Germany. But that is only apparently so. There are at least three issues that need to be urgently solved.

Firstly, Bulgaria’s share for reception of refugees was 1.25%. Until recently that meant the accommodation of 800 people, which the Bulgarian institutions (and espe-cially several MEPs) viewed reluctantly. But according to

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Juncker’s new plan, Bulgaria will have to receive another 1,500 refugees. How will a country that could hardly man-age to accommodate 800 and had problems handling sev-eral thousand passing refugees cope with all that? Nobody knows. Bulgaria has its own Muslim population and quite a large diaspora in the Middle East but for now it miracu-lously stands outside the main interest of Islamic State. But there is always a risk and it should not be underesti-mated.

Secondly, Bulgaria’s desire to become member of the Schengen area can be foiled not by its own problems but because of the world around. Paradoxically, that may not be such a big catastrophe: if Sofia joins Schengen, the refugee flow may increase, rather than decrease;

once in the Schengen area,

it will be much easier for every refugee to reach the cher-ished Germany. Therefore a compromise is likely to be reached – partial entry in Schengen, for instance by air only. That will be an attempt to have the best of both worlds.

Thirdly, the shameful episode with the dead people in the

abandoned truck in Austria revealed Bulgarian participation in the illegal trafficking in human beings to the heart of Europe. In other words, the Bulgaria mafia is here and liv-ing. Nurtured by the embargo against former Yugoslavia, it lost influence with Bulgaria’s European integration but toady it is raising its head. The refugee wave is a huge resource for it; it will help few become rich but put many in the terrible situation of being strangers in their own country. That is something that a Bulgaria facing depopulation, a demo-graphic crisis and migration of its own population will not be able to stand.

To recapitulate, the moral, political and demographic crises facing Europe to a great extent are Bulgarian problems too. They demoralize the public and prevent the economy from growing. What can be done? The oldest cliché is that Chinese hieroglyph for crisis, which is said to have the double meaning of opportunity.

But that is the relief of the strong. They know that everyone can do fine with a crisp tailwind but only heading into at storm will reveal the good captain. Both Bulgaria and Europe need worthy skippers right now in the middle of the gale. �

A car with Bulgarian license plates full with 17 Syrian migrants was detained near the Bulgarian city of Tsarevo. The Driver – Iranian citizen was arrested for human trafficking.

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“Swimming is on your own responsibility. There is a risk of infections,” reads the startling warning to visitors on some of the best-known beaches in Hawaii, including the famed Waikiki. For a few days in August some of the most dreamed-about spots on the planet remained deserted. The reason was the spillage of nearly 2,000 tonnes of waste-water along the Pacific coast. Sewage. Not sharks and jellyfish. Contamination. The warning could be read on signs and heard delivered by lifeguards using loudspeakers…

The fact that breaches of the rules and contamination of the seawater affect tourism was admitted even by Bulgaria’s Minister of Tourism Nikolina Angelkova.

This year alone the number of holiday-makers has dropped about 20 percent, she said. These are sad statistics, given that the sector generates 12 percent of the gross domestic product and the gov-ernment even had plans to raise the share to 20 percent by 2020. However the trend is just the opposite.

As a matter of fact there are more indi-cations that the crisis in Bulgarian tour-ism is aggravating. In the first half of 2015 only 50 percent of the visitors to Bulgaria’s resorts were citizens of EU member states, statistics show. Visitors from Germany dropped 13 percent, Romanians, nearly 50 percent. Tourists from Russia and Ukraine, which are traditionally the largest group and the

most generous lovers of the Bulgarian seaside, decreased at least 20 percent.

Tasty and cheap is not enough

The problem of contamination of the Bulgarian seaside has been looming large for years. The construction boom and the tourist influx are the main rea-sons for the doubtful cleanliness of the water and beaches around several resorts.

The contamination of the beach in Lozenets is a classic example of private investment initiative outstripping the con-struction of infrastructure. At the height of the season it emerged that the water on

In search of lost tourists…

Seaside Woes of Season 2015: Dubious Cleanliness and Closed Beaches

By Marina Tsvetkova

The beaches of Lozenets, Ahtopol, Tsarevo and Chernomorets, the central and eastern beaches of Pomorie, the southern beach of Kiten, Primorsko and Sozopol are the ones with levels of contamination above the best standards according the official data of the Regional Inspection of Environment and Waters of Burgas.

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Lozenets’s central beach and the former camping site of Nestinarka had the high-est concentrations of E-coli and intestinal enterococci. The data were published on the website of the Regional Health Inspection of Burgas. Following a micro-biological analysis of the water, a tempo-rary ban was issued on swimming in the sea. The samples showed that the val-ues of coliforms exceeded the admissible levels. Coliforms are bacteria like E-coli and other such bacteria that can cause acute gastro-intestinal infections.

Regarding the Lozenets case, Minister of Environment and Water Ivelina Vasileva said there was a need for modernization and expansion of the wastewater treat-ment plant, which was built many years ago. For the purpose the municipality and the local water-supply and sewerage company have to prepare a plan. It turned out that untreated water had been discharged from the plant, i.e. more efforts are needed for its proper opera-tion, Vasileva said.

The treatment plant was built 30 years ago with a capacity to service 3,000 people, while today it has to service more than 10,000 tourists.

Comparative data show that the seawa-ter by Bulgaria’s northern coast of the Black Sea is much cleaner that on the southern one. That is known by tourists, so every investment in a treatment plant is a reason for optimism among the affected towns and villages. Burgas

Regional Health Inspection published the indicators of 48 beaches along the southern coast. The samples were taken in late July and early August. Analyses are made regularly every two weeks and the results are ready in three days. Additional inspections are made in case of alert. As could be expected, the established quantity of bacteria causing gastro-intestinal infections is higher around the larger seaside towns and resorts.

At the end of August, a mysterious con-tamination startled holiday-makers on the beach in Primorsko after the sea waves cast ashore white wax-like balls that were greasy to the touch. The prob-lem was first reported to the inspection

by the concessionaire of the northern beach in Primorsko, who saw huge piles of the mysterious substance.

The cleanest beaches to the south are Silistar, the village of Chernomorets – South, the central beach of Sveti Vlas, Aheloy camping site, the southern beach of Pomorie, the beach of Kraymorie and the beaches of Dyuni. The popular beach of Koral has not been examined, most probably because it is not guarded this year.

At the opposite pole are the central beaches of Lozenets, Ahtopol, Tsarevo and Chernomorets, the central and east-ern beaches of Pomorie, the southern beach of Kiten, Primorsko, Nesebar, Sozopol, the camping sites of Zlatna Ribka and Gradina, as well as some of the beaches of Sunny Beach, show the official data of the Regional Inspection of Environment and Water of Burgas.

Ofitserski Beach in Varna is an exception to the general rule – it is among the con-taminated ones; in the middle of July the concentration of E-coli in the water there exceeded more than twice the admissible norms (500 units per cubic centimeter of water). The beach was never closed, because follow-up analyses did not show deviation from the norm.

Contamination with fecal water was found in the region of the Kabakum North beach, next to Chayka residential district, following a signal. The source of the contamination was a pipeline pass-ing between the International House of Journalists and private properties.

Minister of Tourism Nikolina Angelkova presented a new online register for Bulgarian tourist attractions early in September. For different reasons - Ukraine, Russian workers holidays policy, financial crisis in Bulgaria and contamination scandal, the tourists to Bulgarian seaside this summer were almost 20% less than in 2014.

Interesting facts about the Black SeaThe Black Sea is about four times larger than Bulgaria and makes up 1/853rd of the total area of all seas and oceans on the planet. Its maximum depth is 2,245 meters, and its average depth is 1,271 meters. The water catchment area spreads over some 2,500,000 square kilometers and includes rivers on two continents: Europe and Asia.

The Black Sea is a typical internal sea. To the west, its shores reach the Balkan Peninsula; to the north, it is bounded by the Russian Plain; to the east, the Caucasus and the Colchis Lowland; to the south, the Anatolian Peninsula.

The coastline is 4,090 kilometers long. The Black Sea is part of the large interconti-nental Mediterranean Sea. The Bosphorus Strait, which is up to 50 meters deep, connects it to the Sea of Marmara, and the Strait of the Dardanelles connects that sea to the Mediterranean. To the north, the Strait of Kerch connects it to the Sea of Azov, which can be seen as a shallow and large bay of the Black Sea. The Black Sea is the most isolated sea from the world ocean.

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The institutions actually conduct spe-cialized water tests and have already established improvement of the water quality in the regions where treatment plants operate. The plants are designed to treat wastewater from industrial facili-ties and households. Once processed, the water is discharged into the sea without causing pollution. The new facil-ities and technologies have to guaran-tee a healthy environment for people and preservation of the biodiversity, which is a wealth for Bulgaria.

Treatment plants vs. wastewater

Some 300 million Leva has been invest-ed in facilities to clean the seawater in the summer of 2015. Two treatment plants have been opened in Varna and Pomorie, which makes the water safer for swimming for nearly 420,000 tourists and residents of the towns. Large-scale reconstructions of the treatment plants near Nesebar and Ravda will be finished soon. The investment amounts to 95.8 million Leva. The facilities will service Sunny Beach, Nesebar, Sveti Vlas, Kosharitsa, Ravda, Kableshkovo, Aheloy

Minister of Environment and Water Ivelina Vasileva during the official opening ceremony of the new water supply and purifying system in Kardzhali. For the case of Lozenets contamination she said there was a need for modernization and expansion of the wastewater treatment plant in the seaside town, because it was planned for 3000 citizens and during summer season the tourists in Lozenets are more than 10000.

The Black Sea basin has undergone many changes. The climate of the Black-Sea coast is characterized by mild winters and relatively hot summers with many sunny days. To a great extent the climate above the sea itself is formed by the atmospheric transport. While all oceans and most seas have almost one and the same salinity, which is quite high (35 percent), the salinity of the Black Sea is twice lower (18 percent). That is related to the hydrological peculiarities of the Black Sea, more specifically the formation of its water mass, its structure and dynamics.

The low and high tides in the Black Sea are insignificant and are registered with instrumental observations. As a result of the vertical distribution of salinity and tem-perature, the water mass in the Black Sea has a specific structure, split into two layers: an upper layer containing oxygen (from its surface to a depth of 200 meters) and a lower one (below 200 meters), where oxygen is replaced by hydrogen sulfide. The stratification of the water mass has an impact on all other hydrological indicators of the vertical stratification of the plankton and benthos. There is no other sea on the earth with such stratification of the water mass.

Some 70 percent of the total amount of waste discharged into the Black Sea comes from the six Black Sea countries (Bulgaria, Georgia, Russia, Romania, Turkey and Ukraine). Some of this waste and the rest 30 percent flow into the Black Sea through the Danube River. Given the lack of large currents, the insufficient circulation of the water and the large quantities of doubtful nutrients flowing into it, the environmental status of the Black Sea is getting worse and worse.

Taking into account the worsening environmental health of the Black Sea, in April 1992 the six Black Sea countries signed in Bucharest a convention on the protection of the Black Sea against pollution, which is a legal and diplomatic platform for joint actions.

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and Tankovo, which means some 150,000 tourists in summer and 30,000 local residents. A 73 million Leva waste-water treatment plant in Sozopol is also to be opened soon. It will solve the very serious pollution problem in Sozopol Bay. Currently the wastewater of Sozopol, Chernomorets and Ravadinovo is discharged directly into the sea, con-taminating both the beaches and the many shellfish farms in the area.

The total value of the projects under the new Environment Operational Program is 2.5 billion Leva until 2020. A part of the money will be used for construction of new and expansion of existing treat-ment plants at the seaside. A total of nine treatment plants have been financed under the Environment Operational Program 2007-2013. Four of them have been built or reconstructed already: Varna-Akatsiite, Pomorie, Provadia and Ruen. The project for modernization and expansion of Golden Sands’ treatment plant is under way. The deep-water discharge facility is worth 48 million Leva and has been built already. The treatment plants of Nesebar and Tervel are also under construction. Three new treatment facilities are planned in the region of Burgas: in Banevo, Vetren and Mineralni Bani, as well as in the district of Gorno Ezerovo. The treatment plant in Sozopol, which residents and holiday-makers have been waiting for years, is almost fin-ished too.

More than 400 million Leva is the value of the nine treatment plants

in the region of the Black Sea. These include three projects performed under the ISPA pre-accession program before 2007: the water cycle of Varna and Balchik and the wastewater treatment facility of Meden Rudnik district in Burgas. The ISPA projects amount to

some 110 million Leva. That means that more than 550 million Leva has been invested for the past 10 years in making the seaside cleaner. The total value invested in 50 projects for environmen-tal preservation at the Bulgarian seaside in the sectors of water, waste and biodi-versity stands at 713 million Leva.

Waste treatment is also related to the

cleanliness of the seawater. Because if that is not done according to the European standards, the groundwater carries the waste into the sea. Statistics of the Ministry of Regional Development and Public Works show that of 209 beaches along the Bulgarian Black-Sea coast, 95 have not been granted con-cessions on. The check-up of more than 100 concession-holders in August showed mass breaches of the rules, including the rules for free access to the beach, provision of medical care and lifeguards. A total of 56 concession-holders were fined and there are grounds for termination of several contracts for repeat breaches. More than 1.5 million Leva is the amount of fines collected this year but concession-holders and those renting beaches prefer paying the fines to changing the management of beaches. �

Cleanliness of seawater near Nesebar will be guaranteed The project for expansion and modernization of the wastewater treatment plant in Ravda is almost completed. The discharge facility carrying the treated water 2.5 kilometers into the sea was finished at the end of June. When the project is over, the capacity of Ravda’s treatment plant will reach 222,000 people and will treat an addi-tional amount of 9 million cubic meters of wastewater. The cleanliness of the seawa-ter in the resort villages of Aheloy, Ravda and Nesebar will be guaranteed.

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In Bulgaria the lower oil prices will affect mainly the price of the natural gas but they can also shrink the VAT revenues

For weeks now oil prices in world mar-kets are aiming at a new bottom. The analysts say that the markets are oversupplied and demand lowers. At the same time the economy of one of the biggest energy consumers – Japan, shrank in the second quarter. A slowdown is seen also in China, the world second biggest economy, which inevitably will affect the global econo-my.

One by one, major energy companies freeze new projects because of the restless oil market. In Bulgaria the plans for exploration of the natural gas and oil in the deep waters of Black Sea in the Khan Asparuh block were also postponed. The consortium between Total, OMV and Repsol can-celed its contracts for some of its activities in the promising block, taking into account the changes in the legis-lation from one side, and the time-consuming geological exploration from another.

Now the exploration of the field is expected to start as soon as 2016 instead of late 2015. The consortium asked for the delay so it can make new evaluation and wait for the situation to settle down.

Since then though the prices of the energy resources have fallen even more. According to the company though after the first delay the project is back on track and currently the drill-ship is being chosen. The exploration is planned to start between March and May 2016.

The economist Lachezar Bogdanov commented that it's more difficult to transport natural gas and there is cer-tain economic logic in developing new explorations. Their scope is large and currently the major companies choose the projects that make greatest eco-nomic sense. He says that the explo-ration of natural gas and oil won't stop but the costs are being analyzed very carefully.

In Bulgaria the effect of the lower oil prices will be felt mainly in the price of natural gas. The formula of its calcula-tion is such that the oil price affects it too albeit a delay of 9 months. According to the economist Krasen Stanchev the impact will be mainly fis-cal and trade and export will feel some relief.

He reminded that the Law on the State Budget was based on a long-term forecast for an oil price of about 92 dollars per barrel for 2015. Currently, however, the Brent crude, used in the calculations of the Ministry of Finances, is traded at 49-50 dollars per barrel (as of August 21) in global markets which is close to the crisis levels of 2008.

The very first months of the year showed that the Ministry experts are wrong in their forecast for the situation on oil markets. The oil price was cor-rected in the spring review of the bud-get – to 61,5 dollars per barrel average for the year. The expectations of the analysts at the U.S. Department of Energy though are that the European crude oil will be traded at just over 54 dollars per barrel average in 2015.

If there is a great discrepancy between the forecast and the actual oil price, the revenues from VAT and excise duty set in the budget will be lower, says Stanchev. Therefore he expects new correction of the fuel prices in the autumn review of the state budget.

Lachezar Bogdanov though doesn't expect serious problems for the budget because of the difference between the forecasts and the real oil prices. He cited that the latest budget data show VAT revenue growth which is behind the budget surplus in recent months.

“Partially this is due to the higher value of the dollar, partially – to the estimat-ed tight costs in the budget”, adds Bogdanov. �

Will Cheap Oil Stumble Bulgarian Plans for Domestic Production?

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Auxionize is an e-pro-curemet system offering

an alternative to the traditional procurement process. The company was founded by two of the most successful Bulgarian entrepreneurs – Ivaylo Penchev a serial entrepreneur and co-founder of Walltopia – the world's leading climbing walls manufacturer and Peter Mitev a co-founder of Chaos Group – the creator of one of the most success-ful products for 3D visualization, V-Ray. Auxionize`s official launch was in November 2014 offering a software solution that increases the efficiency of the business processes and a virtual marketplace for transparent business governed entirely by the market principles of supply and demand. More than 4000 Bulgarian and international companies are registered users of the new e-procuremen system. Every company no mater big or small can implement the new soft-ware solution offered by Auxionize to revolutionize the whole procure-ment process in the company. The platform is most suitable for pur-chases of commodities and standardized goods or services. Moreover, Auxionize is developing an unique marketplace, where the buyers will be able to find new supplies and vice versa. The first industries where the virtual marketplace will be available are the transport and logistics, plus the courier services, software & hard-ware plus software licenses, office supplies, marketing and advertis-ing materials, airplane tickets and hotels for business trips and events, vehicle/company cars and tiers, insurances and more.

Contacts: Elina Halacheva

Managing PartnerTel.: +359 2 90 49 610

Address: 10, Arh. Bogdan Tomalevski Str., Mladost 41715 Sofia

Bojinov & Bojinov is a boutique law firm providing highly special-

ized legal services in IP and corporate law. First established as a family practice in 1935, we combine innovation with traditional experience to serve our client portfolio spanning local start-ups to global FORTUNE 500 companies. This empowers us to provide the optimal balance between expert legal services and personal atten-tion to the smallest of details. Our team is comprised of Partners with substantial experience in the IP field, which is complemented by an array of associates having earned their degrees in the United Kingdom and United States. The firm has selectively built a team of experienced consultants – scientific, linguistic, and investigative – to deliver the highest quality legal counseling in every sphere of our practice. This enables objectivity in every case and familiarity with the needs of our clients from every part of the globe. As a part of Bojinov&Bojinov‘s social responsibility program, we utilize our pro-fessional experience to actively work with state institutions and international organizations. Together we conduct and participate in round tables, seminars, and professional workshops to enhance the role of IP law in society. The company’s innovative approach in the spheres of IP and corporate law combined with strong legal traditions and ethics passed through three family generations, deliv-ers entrepreneurial thinking both to and on behalf of our clients.

Contacts:Bojidar Bojinov

ManagerTel.: +359 2 986 2974

http://www.ptmbojinov.comAddress: 38, Alabin Str., 1000 Sofia

We are DA TRAVEL, more than 10 years on market, mainly focus on corporate travel management - IATA full accredit agent. We

offer full and complex services to corporate clients: air tickets (negotiated corporate fares), hotel accommodation, transfers, rent-a-car, event management in Bulgaria, registration for con-gresses, incentives trip and holidays. Our main focus is 100% customer satisfaction, maximizing savings and control of overall corporate travel.

How we Work� Dedicated IATA certified travel consultant with minimum 5 years’

experience in corporate travel management.� Individual approach familiar with the habits, preferences and

requirements of our customers.� Negotiate corporate fares.� Work in full compliance with Bulgarian legislation.

Main Services:� Airtickets – Global airfare consolidator – 900 airlines, contracted

fares from 70 markets – US/Asia/Europe; Corporate negotiated fares; tripartite agreements; maintenance of loyalty programs – Miles and More, Bluebiz and etc.; group fares.

� Hotel Accommodations – 7 reservation systems; guaranteed quotes for congresses ; over 200000 hotels worldwide; con-tracted fares.

� Event Management – Team buildings and congresses; contracts with more of

� 650 hotels in Bulgaria, reliable subcontractors – conference technique, catering, show programs.

Contacts:Maria Atanasova

CEOTel.: +359 2 980 6698

Address: 10, Tsar Petar street1000 Sofia

Garitage Investment Management EOOD is a company specialized in investment man-agement for own accounts and for third party

investors, on project level. The company has experience and focuses on investments in the real estate sector, agricultural / food production, and education. The company's portfolio includes proj-ects for managed residential communities and office parks, com-mercial areas, educational and sports centers.

Garitage Investment Management EOOD partners with some of the most established architectural studios in Bulgaria, and worldwide, to integrate the styles diversity and modern trends in materials and technologies to successfully implement its investment projects.

The company sustains high quality of operations by partnering with experienced contractors using integrated systems and cer-tificate management processes.

Contacts: Atanas Garov

Managing PartnerTel.: +359 2 904 6686

Address: Sofia Park, Build. 16B, 3rd Floor1766 Sofia

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Holzindustrie Schweighofer EOOD is a subsidiary company of Holzindustrie Schweighofer Romania and part of the Schweighofer Group. The core business of Holzindustrie Schweighofer EOOD is trading

of coniferous logs. For more than four centuries, the Schweighofer family has been closely associated with the wood processing industry. The result of the development of the past 12 years: meanwhile 5 modern technology woodworking factories were established in Romania. At present Schweighofer employs 2,800 people in 3 sawmills (Sebes, Radauti, Reci - starting Q3/2015) and 2 panels factories (Siret, Comanesti). Holzindustrie Schweighofer is the market leader in wood industry – with a wide range of high quality products, exported to more than 70 countries all over the world.

Schweighofer Group is active in the following business sectors:� Saw mills and further processing (Holzindustrie Schweighofer)� Energy - cogenerated heat and power plants for production of

green electricity� Wood trading� Production of high quality viscose pulp� Forestry� Real estate� Hotel

Contacts:Jurgen Bergner

CEOAddress: 128, G.S. Rakovski Str., Fl. 5

Sofia

For over 166 years, our innova-tions have been advancing human

health Siemens Healthcare is a pioneer when it comes to provid-ing medical technologies that help deliver a better quality of healthcare. Siemens Healthcare develops innovations that sup-port better patient outcomes with greater efficiencies, giving pro-viders the confidence they need to meet the challenges of a changing healthcare landscape. As a global leader in medical imaging, we have a keen understanding of the entire patient care continuum—from prevention and early detection to diagnosis and treatment.

Siemens Healthcare strives to be a trusted partner in a changing landscape. Our aim is to support our customers at all levels and along the entire continuum of care to meet the new challenges and achieve a successful transition to next-generation health-care.

Today, we’re one of the world’s largest suppliers of technology to the healthcare industry. All supported by a comprehensive portfo-lio of clinical consulting, training, and services tailored to custom-ers’ needs.

Contacts:Todor Vodenicharov

CEOTel.: +359 2 8115 394

Address: 2, Kukush Str.1309 Sofia

Sterling Serviced Office Group was the first Serviced Office provider

in Bulgaria opening in 2004, offering premium, flexible & tailored serviced office solutions in 3 locations: � Sofia, at 2a Saborna Street - in the heart of the city in one of the

most beautiful office buildings, an architectural monument built in 1929 and modernised on the inside.

� Sofia, at Serdika Offices – is our brand new centre with 137 workstations in 26 offices, various Meeting Rooms, Club Lounge Room, Café and spectacular views of Sofia and Vitosha Mountain from the top floor

� Istanbul, at Astoria, Tower A, Floors 8/9/10 – in the heart of city’s business district

Sterling services and facilities include fully Furnished and Equipped Offices, Project Offices, Virtual Office & Business Base, Meeting, Conference & Training rooms, Event Planning and Venues, Video Conferencing, IT/Telecom, Business Support, Reception and Welcoming, Club Lounge Room & Café area. Monthly fees are inclusive of substantial amount of services.

Sterling is also a member of Alliance Business Centers Network with over 650 partner locations worldwide.

Contacts: Giles Blanchard

Managing DirectorTel.: +359 2 9264 111

Address: 2A, Saborna Str.1000 Sofia

Inquire: +359 2 9264 111; sofia@sterlingoffice.com www.sterlingoffice.com

The National Network for Children is an alliance of 127 member-organizations from all over Bulgaria, which work with children and families in four major direc-tions: health, education, families and chil-

dren in institutions, as well as children’s and juvenile justice. The mission of the organization is to strengthen and facilitate the coop-eration among similar non-for-profit organizations and all inter-ested parties in the best interest and wellbeing of children in Bulgaria. In 2014 the member-organizations of the National Network for Children worked and helped 94 141 children through-out the country. They also supported 6 792 families and trained 3 134 experts from different professional groups that work with chil-dren and families. There are a thousand people that work in the National Network for Children and more than a thousand volun-teers help us on regular bases.

Contacts:George BogdanovExecutive Director

Tel.: +359 2 444 43 80Address: 58 Vitosha Blvd., 4th fl.

1463 Sofia

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As part of the Telus Days of Giving in Sofia, more than 500 TELUS International Europe volunteers invested their time and energy, along with a company investment of €40,000, to renovate the Louis Braille School for the visually impaired children. TELUS International Europe, a leading outsourcing company, aims to improve the environment and conditions in which children live and learn.

Telus team members around the world volunteer to worthy causes in their local communities, bringing to life TELUS’ “we give where we live” philosophy. Telus Days of Giving are a global initia-tive that takes place in every location Telus International operates. TELUS International Europe was honored with the special “Engage” award, from the Bulgarian Business Leaders Forum, for the Telus Days of Giving event in 2014.

The initiative is taking place at the Louis Braille School for the third consecutive year. With this year’s planned activities, Telus International Europe and the vol-unteers fulfill the promise made three years ago to the school management to help them to improve the conditions where the children live and study.

"We are extremely happy and grateful to Telus International and all the volun-teers for the support. Our school rarely receives an investment of such scale and we can’t believe we have finally accomplished what we’d dreamt of for years. Our school is one of the few in Bulgaria where children with disabili-ties can get education and I can hap-pily say that the conditions, atmo-sphere and quality of teaching and learning in the school have been sig-nificantly improved after the Telus Days of Giving. Telus International Europe remains our friend and we will be very happy and proud if some day our students can be part of the com-pany and have the chance to bring back to the community through the corporate social responsibility pro-

grams of the company,” said Elka Belokapova, director of the school.

"We express our gratitude to the 500 volunteers and Telus International Europe employees. The declared inten-tion of Telus International Europe to continue to organize the Telus Day of Giving in Bulgaria in the coming years will meet the full support of the Bulgarian government. We are convinced that the number of the socially responsible com-panies that will undertake such noble initiatives in our country will continuously increase in the future," said Mr. Totyu Mladenov, Counselor to the Cabinet of the Prime Minister of the Republic of Bulgaria.

Other friends and partners to the com-pany and the school tool part in the ini-tiative Krasimira Velichkova, Director of the Bulgarian Donors Forum and Mr. Lazar Zhivankin, chairman of the asso-ciation of parents of visually impaired children.

“Every year, thousands of Telus employ-ees participate in volunteer activities in connection with a special day for our company; the Telus Days of Giving. Telus team members around the world join forces to contribute to a better life for those who are most in need. Today,

we have more than 500 volunteers; Telus International team members, and their friends and families,” said Xavier Marcenac, President of Telus International Europe.

“We expect significant growth of the company and I hope next year we will have twice as many volunteers attend the Telus Days of Giving. I am really proud to be part of this amazing team and to know that, together we are giving back to the community in which we live,” Mr. Marcenac added.

The TELUS International Europe invest-ment this year is focused on finalizing the refurbishment which started three years ago at the first TELUS Day of Giving. The school dormitory has been entirely refurbished, the lighting in the dormitory and school building has been changed, the furniture has been replaced, the school yard was cleaned and the green areas maintained. The special sensory garden was brought back to life and now the children can continue to explore the surrounding nature. This year, the investment of time, money and energy are concen-trated on refurbishing the school library, the corridors and the dormitory, planting new trees, and preparing the school for the start of the new school year. �

Telus International �urope Invests €40,000 to Renovate the Louis Braille School

Levon Hampartzoumian, UniCredit Bulbank and Xavier Marcenac, Telus International Europe.

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US$305b invested into the region, 36% year-on-year increase UK, Germany and France remain the preferred destinations for foreign direct investment (FDI) within Europe, while Turkey enters the Top 10.

More than half (59%) of investors into the region believe Europe’s attractiveness will improve in the next three years

FDI into Europe hits a new record with US$305b attracted into the region in 2014, translating to a 36% year-on-year growth, despite global growth slowdown. Last year alone, 43 European countries – including Russia and Turkey – drew 4,341 projects reaching a 10% growth over 2013 and created 185,583 jobs (+12%).

According to 808 decision-makers polled for EY’s 13th European attractiveness survey, Western Europe attracted 50% of investments worldwide in 2014, up from 45% last year, overtaking China as the most attractive investment des-tination, which saw a 6% decline in projects to 38%. An increase in North American investment, up from 31% to 39%, placed it in second place and saw China pushed down to third place.

Marc Lhermitte, EY’s Head of International Location Advisory Services and author of the report says:

“The improvement in Europe’s relative attractiveness stems not just from economic stabilization and recovery in Europe, but also from the greater uncertainty about the emerging mar-kets and their ability to continue delivering the growth rates achieved over the past decade. Lower energy prices, a weaker euro and quantitative easing have all added impetus to Europe’s investment appeal and resulted in almost 200 thou-sand new jobs created across the continent which is a very encouraging figure as employment is one of the key drivers of economic growth.”

Country and city ranking: Who is winning the European attractiveness race?

More than half (52%) of FDI projects and 30% of jobs created by investments into Europe were captured by the top three destinations: the UK, Germany and France.

The UK is still the number one destination in terms of FDI proj-ects and jobs. Turkey is a new entrant into the top 10 countries by FDI projects at the ninth position, replacing Finland. The remaining positions are taken by Spain, Belgium, Netherlands, Poland, Russia and Ireland.

The capability to restore economic growth, competitive edge, the ability to nurture new-age companies and commercialize ideas for changing the lives of millions are a few reasons why European cities attract FDI, with London at the number one position, followed by Paris and Berlin. The top 10 includes three in Germany – Berlin, Frankfurt and Munich – as well as two cities in Spain – Barcelona and Madrid.

Central and Eastern Europe, Russia and Turkey account for more than half (52%) of Europe’s total jobs created by FDI – at 96,087 jobs – outpacing Western Europe. Slovakia is a new entrant into the top 10 countries by FDI jobs creation at the ninth position, replacing Serbia. The top 10 also include the UK, Russia, Poland, France, Germany, Romania, Spain, Turkey and Ireland.

Western Europe Overtakes China and North America as #1 Investment Destination with FDI Projects at Record HighEY European attractiveness survey

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Key sectors for FDI in EuropeAn economic recovery, a depreciating euro and falling energy prices have all helped revive the appeal of manufacturing in Europe. Taken together, they underpin a 20% surge in FDI manufacturing projects and jobs. Logistics operations, also blue collar, rose 27%, driven by this industrial resurgence and a boom in e-commerce.

Services had a mixed year: software projects (27% increase), financial intermediation (37% increase) and back-office opera-tions (15% increase) all grow strongly while business services (24% decrease) and research and development (1% decrease) slide.

Projects go west, jobs go east

Central and Eastern Europe (CEE) incl. Russia and Turkey outperform their western neighbors in the number of jobs cre-ated by FDI. Therefore if the number of new jobs in Western Europe is 89 486, those in CEE are 96 087. Poland and Turkey retain the appetite of investors and generate high levels of new jobs. Poland ranks third with 15,485 jobs, and Turkey is eighth with 8175 jobs. Romania is progressing impressively with 77%, creating 10 892 new jobs. The largest jump however makes Macedonia with 233 % increase in jobs created. They are 5688 in 2014. Bulgaria ranks just after the first ten – 12th place with 5688 new jobs. However, the need for reforms and better infrastructure is crucial in attracting investor interest.

The biggest investors

Although, European companies account for half (51%) of FDI projects into Europe itself and US multinationals a full quarter (25%), Chinese companies passed Japanese companies to become the fifth-largest FDI investors into Europe in 2014. With 210 projects, up by almost 40% from a year ago, Chinese investment into Europe shows the effect of the Chinese Government promoting outward investment as a means to acquire technology, brands and resources overseas to boost domestic high-value manufacturing and services.

A bumpy road ahead?

The survey reveals 59% of investors are confident about Europe’s prospects in the upcoming three years, but only 32% of executives have plans to establish or expand operations in Europe over the next year, while 64% do not have any plans.

Investors suggest that to make the best of Europe’s economic resurgence and further improve the investment climate, policy-makers should continue to remove impediments to business efficiency – such as excess bureaucracy and slow growth, which are still seen as major obstacles.

Foreign investors see bureaucracy (20%) and slow economic growth (17%) as the biggest flaws in Europe’s attractiveness, overshadowing the geopolitical uncertainty at Europe’s fron-tiers (11%) and big deficits (11%). European countries need to further enhance labor market flexibility, simplify regulations and foster business-friendly environments.

Lhermitte says: “Current debates across Europe are likely to influence the region’s attractiveness for investors. Any poten-tial change in the UK’s relationship with the EU and key events – elections and reforms – in major European econo-mies could affect the attractiveness rankings going forward. In particular, those countries – France, Spain, Italy and more – that have the potential to raise their investment appeal could contribute to an even more interesting Europe in the next couple of years.”

Pascal Macioce, EY’s EMEIA Deputy Managing Partner, says: “A stable business environment, research and innovation capacity and its market are Europe’s top investment attrac-tions. Investors believe the digital, health care and energy transformations will drive Europe’s renaissance, once again becoming the most desired investment destination.” �

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Walltopia, the world’s leading manufac-turer in the climbing wall industry with more than 1,300 projects in 50 coun-tries has joined forces with BlackPeak Capital and the China–CEE Fund.

BlackPeak Capital, a co-investment growth equity fund focused on invest-ing in high-growth Bulgarian companies with leadership positions on the global and domestic markets, together with the China–CEE Fund, a fund estab-lished by China Exim Bank in partner-ship with other institutional investors

from the CEE region, focused on iden-tifying and partnering with dynamic businesses, have acquired a minority share in Walltopia Ltd. This is the first investment of the China-CEE Fund in Bulgaria and one of the six investments completed by BlackPeak Capital since its launch in 2014.

“We are happy to welcome partners who share our passion for the product and who can drive value beyond money” said Ivaylo Penchev, CEO of Walltopia. The partnership between

Walltopia, BlackPeak Capital and the China–CEE Fund aims to support the company’s impressive growth and inno-vative amusement products. In 2012, Walltopia has expanded its portfolio of products and services towards the larg-er amusement and active entertain-ment market. The investment will also increase capacity and support the glob-al roll-out of Funtopia, an amusement concept for indoor climbing for kids, which has already been launched suc-cessfully in Bulgaria, the U.S., Canada, and Israel. �

Walltopia concept design of indoor climbing wall for the near future. Founded in 1998, the company is now one of the world's foremost manufacturers of artificial climbing structures, operating on 6 continents through offices in the USA, UK, Canada, Germany, Russia and Asia Pacific and exporting to 50 countries around the globe. The Head office is located in Sofia, Bulgaria. Innovation has always been, and continues to be, our driving force and we not only offer the largest and most complete range of climbing wall surfaces available in the world today but also deliver complete solutions for customers' facilities and businesses from project design to wall assembly, route setting and staff training.

Walltopia Welcomes New Minority Investors in the Company

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The gallery for modern art, UniCredit Studio, hosts Sofia Transformations, an exhibition with photographs of Bulgaria’s capital city from the end of XIX and the first half of XX century. The exhibition is realized in partnership with the creator of the website Stara Sofia (www.stara-sofia.com), Victor Mihaylov, and is under the auspices of the Mayor of Sofia, Yordanka

Fandakova.

“I hope that all citizens and visitors of Sofia will be able to feel the spirit of old Sofia as at the same time we attempt to make our city a better place for living” Yordanka Fandakova said to the guests at the open-ing ceremony. She received a present from the Chairman of the Management

Board and Chief Executive Officer of UniCredit Bulbank, Levon Hampartzoumian – a copy of an advertisement supplement in the Times newspaper dated 1925. On the last page, one finds a photograph of the building of the Bulgarian National Bank, which back then was accommodat-ed in the building where UniCredit Studio is currently housed.

Sofia Transformations presents a different face of the capital city that few of us remember. The pictures take the visitors on a journey through the old main streets: Rakovski Str., Targovska Str., Lege Str. Knyaz Dondukov Blvd. The pictures show buildings beyond time that have become the capital’s symbols. The exhibition dis-plays the transformations through the years of symbolic sites such as the National Theatre, the Military Club, Sofia University, Lion’s Bridge, Sveta Nedelya Church, Ariana Lake, the Bulgarian National Bank etc.

The black and white photographs tell sto-ries of fortune and misfortune, glamour and ruin. The exhibition takes the visitors 130 years back in time, a period during which the capital of Bulgaria changed a lot.

For many years, Victor Mihaylov has been collecting the photographs taken by a large number of photographers, publish-ers and explorers. The priceless images were captured for greeting cards, publica-tions or were made by amateurs. �

UniCredit Studio Hosts Sofia Transformations Expo and Brings to Life History of Sofia City

Levon Hampartzoumian, UniCredit Bulbank and Yordanka Fandakova, Mayor of Sofia.

Archive photo of the commercial street near the mosque downtown Sofia. Ariana lake.

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