Wage Differences Across Regions Reach 4000 BGN – Causes and Consequences

The significant difference of nearly 4000 BGN in wages between different regions of Bulgaria is a result of various economic and social processes. Economist from Sofia University "St. Kliment Ohridski" Assoc. Prof. Kosyo Stoychev commented to Bulgaria ON AIR that the state has launched a large-scale project to increase wages, which has led to growth in sectors such as "Education", "Security", "Public Administration" and others. This, in turn, provoked a reaction from the private sector, which began to increase salaries to retain its specialists. Changed living costs also contribute to the trend.

Assoc. Prof. Stoychev defines the situation as a natural cycle of income increase. Businesses seek return on capital, and poorer regions are more dependent on European funds and grants for economic survival. However, in large cities, business is more dynamic and outpaces municipal administration.

Problems with transport infrastructure also affect regional development. "The fact that we still do not have a completed highway ring makes business difficult and increases the risk of accidents with cargo transport, especially in Northern Bulgaria," commented Assoc. Prof. Stoychev. Bulgaria still dreams of more bridges, but according to him, there is not enough developed road infrastructure parallel to the Danube. If it focuses only on transport links with Romania, the territory remains primarily transit. Entering Schengen is not the source of these problems, but has only facilitated travel.

The demographic picture in several Bulgarian municipalities is also alarming – the population is above working age, mortality exceeds the national average, and the functions of settlements are gradually fading. According to Assoc. Prof. Stoychev, this process may continue for another 10-15 years.