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Employers, Trade Unions Warn of Risks to European and Bulgarian Industrial Competitiveness


In a declaration on March 17, nationally representative employers' organizations and trade unions express their concern about the growing risks to the competitiveness of European and Bulgarian industry stemming from the increasing regulatory burden, high energy costs and the instability of the carbon emissions market. The declaration is supported by the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Podkrepa Confederation of Labour, the Bulgarian Industrial Capital Association (BICA), the Bulgarian Industrial Association (BIC), the Bulgarian Chamber of Commerce and Industry (BCCI), and the Confederation of Employers and Industrialists in Bulgaria (KRIB).

The declaration reads that in the face of increased global competition and accelerated industrial transformation, European industry needs policies that create a predictable regulatory environment, encourage investment and protect production chains and jobs in the European Union.

"In this regard, we support the joint initiative of the Ministers of Industry of Austria, Croatia, the Czech Republic, France, Germany, Italy, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Spain to take decisive action to strengthen the competitiveness of European industry and to ensure a more balanced and investment-oriented regulatory approach. The initiative is a continuation of the Berlin Declaration of November 3, 2025 within the framework of the Friends of Industry initiative, supported and adopted with the signature of Bulgaria," the unions and employers emphasize.

According to them, Bulgaria should be among the most active countries in such initiatives - any European decision that leads to an additional increase in production costs in the industry has a stronger impact on Bulgaria than the EU average. "The share of industry in the Bulgarian economy is above the comparable European average. Bulgarian industry is integrated into European supply chains and is the backbone of the country's foreign trade and employment. Therefore, any sustained decline in industry automatically becomes a social risk and is a direct blow to Bulgaria's exports, balance of payments and fiscal position. Therefore, we consider it important for our country to participate actively and consistently in the formation of the regulatory and energy agenda of the European Union and to advocate measures that preserve the competitiveness of the industry," the document reads.

The unions note that trends related to the functioning of the European Emissions Trading System (EU ETS) create a risk of excessive price volatility, limited market liquidity and additional pressure on industrial enterprises. “High carbon prices, combined with prohibitive energy prices, call into question the survival of entire sectors such as energy, transport, fertilizer production, cement, steel, aluminum, chemicals, etc. The upcoming revision of the system should ensure greater predictability, stability, effective mechanisms for protection against carbon leakage and energy and resource independence and should not lead to the displacement of production outside the EU, but to a real transformation based on innovation and investment,” the declaration states.

Trade unions and employers call on the caretaker government to take active action and clearly state Bulgaria's position within the European Union, by officially supporting Member States insisting on strengthening the competitiveness of European industry and reducing the regulatory burden on enterprises. They add that the country must stand behind the need for a reform of the European Emissions Trading System to ensure a competitive European industry, market predictability, limiting price volatility and effective protection against carbon leakage and to protect the interests of Bulgarian industry and its workers. According to unions and employers, Bulgaria's lack of an active and timely position on these issues creates a real risk of loss of industrial potential, investments and jobs, as well as of deepening economic disparities between the EU Member States.