TBP Legal and Business News - May 2013


TBP Legal News May 2013
TBP Legal News May 2013


Early General Elections Held, Tight Election Results

On 12 May 2013 early national parliamentary elections in Bulgaria were held. According to official information provided by the Central Electoral Commission, four political parties have reached the mandatory threshold of 4 % of the total vote.
The centre-right orientated party GERB (Citizens for European Development of Bulgaria) of former Bulgarian Prime Minister Boyko Borisov has received 30.54 %, of the votes, the Bulgarian Socialist Party (BSP) – 26.61 %, the ethnic Turkish Movement for Rights and Freedoms (DPS) party – 11.31 %, and the nationalist party Ataka – 7.30 %. Based on these results, the mandates for the Parliament have been distributed as follows: GERB will have 97 seats in the country’s 240-seat National Assembly, and BSP has obtained 84 seats. Ataka and DPS would respectively have 23 and 36 seats in the Parliament.
On 29 May 2013 the National Parliament passed the vote for the new Government. The Prime Minister Mr Plamen Oresharski was nominated by BSP and the newly formed government includes experts and political figures both from BSP and DPS.
Mr Oresharski has stated in his political platform that the new government will keep the 10 % flat tax rate for corporate and personal income taxation and also that no changes in the overall tax policy will be introduced. Challenges standing before the new Government include keeping the currency board and financial stability, reducing relatively high unemployment rates and achieving Bulgarian long awaited accession to the EU Schengen area.


Environmental Permission Procedure for Nabucco Pipeline Project Completed

The procedure for issuance of an environmental permit for the Bulgarian section of the Nabucco gas pipeline has been completed.

The total length of the Bulgarian section of the project is 424km. According to a media statement of Nabucco consortium, Bulgaria is the second country after Hungary to complete the Environmental Impact Assessment (EIA) permitting process.

The CEO of Nabucco Gas Pipeline International defined the finalization of the EIA procedure for the Bulgarian section as an important step towards the implementation of the project. According to the statement of the Nabucco consortium, the stakeholders will continue working with the Bulgarian authorities in the course of the forthcoming processes connected with obtaining the other permits necessary for the implementation of the project – the detailed zoning plan approval and the issuance of the construction permit.


Key Interpretative Decision of the Supreme Court of Cassation

On 25 April 2013 the Supreme Court of Cassation ruled out a Resolution on interpretation of key provisions in Bulgarian legislation related to registration of transactions with real property rights.

According to the Resolution, the judge-registrar who is responsible for the registration of a particular real estate transaction into the Real Estate Register shall not be empowered to give instructions to the party applying for registration, if he finds irregularities in the respective application. Should such irregularities be found, the judge shall rule out a written resolution by virtue of which the registration shall be refused.

Next, the Resolution provides for a simplified procedure of registration of restraint orders imposed over real estates, as compared to the requirements for registration of real estate transactions. In particular, no specific description of the particular estate with the respective cadastral characteristics shall be required, but a simpler, less detailed description will suffice.

In furtherance, under the Resolution, the agreements for establishment of easement rights in favour of utility companies shall not be registered with the Real Estate Register. Agreements for establishment of easement rights shall be subject to such registration only if signed between owners of land plots.

The Resolution is obligatory for all public administrative authorities and for all judiciary bodies on the territory of Bulgaria.

TBP Legal and Business News - May 2013