Ivan Mihaylov on Euronews Bulgaria: When Talking About Business Climate, We Must Focus on Rule of Law

AmCham has been covering this topic for over 10 years now. It is worth mentioning that there have been several improvements in this area. We are used to commenting on the business climate only on economic indicators, but we rarely discuss the rule of law, and for foreign investors, I would say this is the number one topic.

This was said by Ivan Mihaylov, CEO, AmCham Bulgaria, on the rubric “Good Morning, Europe”, on Euronews Bulgaria with anchor Ani Baldzhiyan.

Ivan Mihaylov added, “These are topics that a lot of people would say what do they have to do with business, and they do because a lot of companies investors don’t know how to feel in the context of the administration of justice in Bulgaria.”

An important element that was addressed during the interview was the so-called state fee, where the minimum is 4% and there is no ceiling. The Chamber draws attention to this because it is limiting for many companies in their claims as they do not know what the outcome will be. The delay in the judicial system also gives uncertainty to investors.

Ivan Mihaylov has also said that “We have a backlog of cases, which slows down the whole model, and that does not give investors certainty. Constitutional changes are happening, but there are many steps to go forward.”

It was also stated that according to data from the American Chamber of Commerce report, which looks at the entire justice system, Bulgarian authorities have more work to do in terms of access to justice in Bulgaria. The concerns are related to the procurement aspect because there are weaknesses in the law that we are addressing. Some mechanisms do not give equal access. We also have termination of contracts, not always in a clear format. This does not give predictability and certainty to the environment.

Watch the conversation (In Bulgarian)