Bulgaria's cabinet quits after protests against energy hikes

(Vatican Radio) Bulgaria's government resigned Wednesday after violent protests fueled by outrage over rising energy prices by foreign-controlled companies in the European Union's poorest country. The cabinet fell amid a wider debate in Europe about EU-demanded privatization of public utilities in member states.


The decision by the rightist government of Prime Minister Boiko Borisov followed days of protests from tens of thousands of furious Bulgarians in cities across this Balkan nation of over seven million people.

Protesters shouted slogans such as "Mafia!" to express their anger about increasing electricity prices by 13 percent, in a country where average monthly wages hover around 360 euro ($480 dollars).

At least one of the rallies, in the capital Sofia, turned violent late Tuesday, when protesters clashed with riot police leaving some 15 people injured.

PRIME MINISTER SHOCKED

That violence shocked Mr. Borisov, who once began his career guarding the Black Sea state's communist leader Todor Zhivkov.

The former body guard-turned-prime minister told parliament his administration resigned because he did not want to impose power by force.

Borisov said his rightist GERB party came to power in 2009 because it was the will of the people. He claimed even on Tuesday his government still did "the most to meet the demands of the protesters" but acknowledged there was "nothing" it could do "to help them."


The prime minister added: "Our power was handed to us by the people, today we are handing it back to them" as the state "needs leadership that has new credibility."

EARLY ELECTIONS EXPECTED


Borisov's move was expected to prompt early elections in April or May.

He leaves behind uncertainty about foreign investments in the country. Just before resigning, he not only sacked his finance minister but also cut power prices of foreign owned companies, risking a diplomatic row with the Czech Republic.


In Prague, the Czech Republic's Prime Minister Petr Necas said the move conflicted with EU norms and accused Bulgaria of "politicizing" the power sector by threatening to revoke the electricity distribution license of a key Czech majority-owned company.


There have also been fines for another Czech company and an Austrian power distributor.

EUROPEAN COMMISSION CONCERNED

Bulgaria's energy pricing policies have worried the European Commission, the EU's executive, explained Commission spokesperson Marlene Holzner.

“If there is a market and the market is working, than you have the best price that is possible," she said. "It will mean that the increase that is foreseen by many, many forecasts will not be as steep."


However, she complained that "In Bulgaria we have regulated prices both for the small and medium enterprises and also for the end users. Our position as the Commission is that we would prefer to have market prices, but you can always, for a certain number of people, for very vulnerable consumers of course, have regulated prices.”

Yet, there are wider European concerns over EU directives about opening up public services for foreign investments, ranging from the energy sector to even water suppliers.

Protests have been reported against these policies in several countries, including in Portugal and Greece, where the EU demands the privatization of public water works in exchange for billions of dollars in crucial bailout money for these troubled economies.

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