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Schengen zone: Sofia city follows the rules

Mina Boycheva 22/03/2013

Europe without borders – actually the Schengen zone means much more than that and this is the reason why all those countries including Bulgaria with its capital Sofia are so eager to enter. In fact, Bulgarian citizens can travel freely. Even so, since the country is not a member of the Schengen zone, they have no rights to work and study without additional permission. The European Union countries have signed an agreement in 2007, according to which the transitional period for entering the Schengen zone is the end of 2013. After that, Bulgarians will have the right to settle permanently in other countries of the European Union in case they have a job or are enlisted in a University. This however is currently not valid. Sofia is still outside the Schengen zone and will remain there for an indefinite period of time.

Bulgarians will have the right to settle permanently in other countries of the European Union in case they have a job or are enlisted in a University.

An interesting fact to be mentioned is that Bulgaria is already part of the Schengen area and became such as it entered the European Union in year 2007. Even so, the citizens in the country have been blocked from free movement. Bulgaria has increased the border checks with its neighboring countries that are not members of the European Union. Besides, the country is also using the Schengen Information System, which allows for police authorities in the European Union to track down the entries and exits of the country. Sofia also has marked great success in preventing traffic of people, smuggling and drug related crimes. Currently, the country has border controls and this will not change before Bulgaria is accepted in the Schengen zone.

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Cyprus in attempt to save its economy

Mina Boycheva 21/03/2013

The political leaders of Cyprus are trying to make a last minute deal in order to save the economy of the country. According to the information presented by the European Central Bank, it will keep the emergency aid planned for the banks in Cyprus until Monday, however after that it will cut them off unless the local government does not issue a rescue program. Thus, the bailout deal should be signed soon, as the Emergency Liquidity Assistance offered by the European Central Bank will be valid only until the beginning of next week. After that deadline, the assistance will be offered only if the solvency of the banks is secured.

The political leaders of Cyprus are trying to make a last minute deal in order to save the economy of the country.

According to the new plan that the government of Cyprus wants to impose, there still will be a 2 % one-time tax on all deposits up to 100 000 Euro and 5 % one-time tax on the other deposits above the named threshold. This new bailout plan came as the finance minister of Cyprus went to Russia in search of additional help. He took this step as many of the wealthiest people in Russia hold big deposits in the banks of Cyprus. Meanwhile, the banks in the country will remain closed until the end of the week, however the authorities have ordered all ATM machines to be regularly filled with cash.

The European Commission, the European Central Bank and the International Monetary Fund, as well as other European officials hope that Cyprus will soon reach a decision and get a financial lifeline, otherwise the damage to the economy of the country will be enormous.

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Sofia office buildings: completed and under construction

Mina Boycheva 21/03/2013

Last year the construction of office buildings decreased due to the lower investment activity on that market in the country and in Europe in general. The building permission for the construction of administrative and office buildings in Sofia in 2012 were 170 in number with unfolded built-up area of almost 84 000 sq.m. This marks a drop with 23 % compared to the levels in 2011 and 58 % compared to the levels in 2008. In year 2012 the office centers in Sofia of class A and class B covered almost 122 000 sq.m. of area. That added to the total coverage of office premises in Sofia being 1 980 000 sq.m.

In year 2012 the office centers in Sofia of class A and class B covered almost 122 000 sq.m. of area. That added to the total coverage of office premises in Sofia being 1 980 000 sq.m.

Among the bigger office buildings in the capital Sofia are the office center on “Tsar Boris III” Blvd. with 19 800 sq.m., the business center on “Vladimir Vazov” Blvd with 20 400 sq.m. and the center on “Todor Kableshkov Blvd with its 11 800 sq.m. The greatest number of the completed offices in Sofia are situated in already established business districts, such as the areas around Bulgaria Blvd., Todor Alexandrov Blvd., Tsarigradsko Schousse Blvd. and Cherni Vrah Blvd. In the central zone of Sofia are still offered modern and new office centers, but they are not many in number. The available office premises in Sofia city make almost 30 % of the existing office premises in the capital. In process of construction were almost 1 400 000 sq.m. of office premises as of December 2012. Currently, there is interest in the construction of smaller office buildings up to 7 000 sq.m.

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Sofia to meet certain conditions to enter Schengen

Mina Boycheva 21/03/2013

As of beginning of March, Sofia and Bucharest cities have remained outside the Schengen zone. Restrictions have been set again, which remind people from Bulgaria and Romania about the separation before year 1989. According to Germany, the two countries have still issues to arrange. Bulgaria’s main problems are the organized crime and the corruption. Locals however, find this blocking offensive and point poverty and the low standard of living as the real reason that made the European countries so reluctant to let Bulgaria into the Schengen zone. The country’s bid to be admitted however is postponed, but not blocked forever.

Bulgaria is hopeful to enter the free travel Schengen zone in the future, when it finally meets the requirements of the European Union members.

In October 2012, Germany also called for certain travel restrictions for the countries on the Balkan peninsula, including imposition of visa requirements. Even if this idea was shared by other members of the European Union like France and Luxembourg, Belgium and the Netherlands, and even by Great Britain, it was later dropped. This was so, as these countries were more afraid of the Roma population trying to enter their territories rather than the regular citizens from the Balkan countries. Thus, no such restrictions are applied today. Bulgaria is hopeful to enter the free travel Schengen zone in the future, when it finally meets the requirements of the European Union members.

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Cyprus turning to Russia for a rescue

Mina Boycheva 20/03/2013

According to Reuters, Cyprus will ask Russia for a new loan in order to avoid a financial bankruptcy, as the island country rejected the 10 billion Euro bailout offered from the European Union, which increased the risk of bank crash and default. The negotiations with Russia are still going on even if the Finance Minister or Cyprus has not made a deal with his Russian colleague the first time. Currently Cyprus has a 2.5 billion euro loan from Russia, but has asked for five-year extension and a second 5 billion Euros loan. At the same moment, Russia has a serious interest to help the banks in Cyprus, as a great deal of the billions is owned by Russian individuals and businesses. In case the country does not take an aid plan soon, the Central European Bank will have to take measures on the Cypriot banking sector.

According to Reuters, Cyprus will ask Russia for a new loan in order to avoid a financial bankruptcy, as the island country rejected the 10 billion Euro bailout offered from the European Union, which increased the risk of bank crash and default.

Cyprus has already rejected the plan offered by the European Union, according to which a levy had to be put on all deposits in order to collect 5.8 billion Euros. Actually, not even one of the lawmakers in Cyprus voted for the bailout scheme offered by the European Union. This is the first time when a national legislature rejects the assistance of the European Union due to its harsh conditions. In the last three years the European Union had offered helping plans to Spain and Portugal, Ireland, Greece and Italy and they all have accepted the measures in order to receive the aid. In general, the European Union usually achieves the outcome they are up to by pressing the smaller countries, but Cyprus is looking for another way out of the crisis.

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The new office buildings in Sofia

Mina Boycheva 20/03/2013

The construction of new big office buildings in Sofia is currently in a waiting policy situation. This is so, as the demand is towards offices in small centers of a mixed type – with residential zone and trade zone with shops. Currently the projects for new office buildings are postponed, until there are more positive prognosis for the real estate market. With an interim government and elections coming in May, the political situation in the country seems unstable and thus foreign investors will most probably arrange for temporal postponing until the situation gets clearer. The real estate brokers and property managers confirm that this might lead to delay in the sale or the rental of the new office premises in Sofia.

In 2013 two high-class office buildings will be completed along Bulgaria Blvd. – the office zone of Bulgaria Mall and Vertigo Business Center, which will form the area as one of the most prestige business and office locations in the capital Sofia.

In 2013 two high-class office buildings will be completed along Bulgaria Blvd. – the office zone of Bulgaria Mall and Vertigo Business Center, which will form the area as one of the most prestige business and office locations in the capital Sofia. Three additional business centers of the same high class are expected to be completed in 2014. In the last few years, the projects for new Sofia office buildings are difficult to be completed. Currently, the office projects in Sofia with postponed construction feature area of almost 220 000 sq.m. At the same time the small companies are looking for smaller office centers and working premises with area varying between 80 and 200 sq.m. The main criteria for choosing a certain office are the good location and easy access, the attractive price and the presence of a parking.

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Sofia still out of Schengen zone

Mina Boycheva 20/03/2013

Bulgaria is still out of Schengen after Germany opposed to it joining the no borders area. The regime of travel without borders is left for the future, after the meeting of the interior and justice ministers of the European countries in Brussels in the beginning of March. In order for the country to be accepted in the Schengen zone, all ministers have to be unanimous in their approval. According to Germany, Bulgaria has still not met the fundamental conditions required for being accepted in the Schengen area and has to be more decisive and strict when fighting against the corruption in the country. The annual report of the European Union declared that both Bulgaria and Romania have shown progress, but still have to achieve more.

Bulgaria is still out of Schengen after Germany opposed to it joining the no borders area. The regime of travel without borders is left for the future, after the meeting of the interior and justice ministers of the European countries in Brussels in the beginning of March.

The concern of the German Minister Friedrich, there is a risk that citizens who are outside the European Union can enter Bulgaria and then go to the rest of the European countries if the borders are open and there is lack of control. He claimed that he wants to keep the European Union from such invasion of immigrants. The Schengen zone allows for free travel with no visas and no passports being checked at the borders. Besides that, all European Union citizens are allowed to remain in any state in order to study or to work. Currently, the Schengen zone covers 22 states, members of the European Union, which means approximately 400 million residents. The countries that are not included are Bulgaria and Romania, Cyprus, Ireland and Great Britain. On the other hand, four countries that are not members of the European Union are part of the Schengen agreement and these are Norway and Iceland, Liechtenstein and Switzerland.

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Exceptions to the Schengen border freedom, Sofia still waiting

Mina Boycheva 19/03/2013

Even if the free movement of people from the European Union within the Schengen area is now largely achieved, there are a few exceptions. Under certain circumstances, internal border checks are introduced again for a temporary period of time. For example, the moments when such check borders were used are during the Football World Cup and the European Championships, as well as during the NATO summits and the meetings of the Group of Eight. In the summer of 2012, Germany, France and several other countries used border checks when a member country of the European Union allowed refugees that were too many. Such measures however, could be used in case there is serious threat to the public safety. For example, Germany and France were afraid that Greece was no longer able to patrol its border with Turkey in an efficient way due to its inner problems and crisis. In general, the countries that are part of the Schengen zone are trying to be as careful as possible, since when a person is already inside the Schengen are, there are no more borders or other checks applied.

Currently, Bulgaria is still outside of the Schengen zone, but will eventually become one in the future.

Currently, Bulgaria is still outside of the Schengen zone, but will eventually become one in the future. The country is trying to answer all requirements that are applied, to fight corruption on all levels and to be strict with the crime fight. The country now has a new, interim government and new elections coming in May.

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Cyprus one-off tax measure

Mina Boycheva 19/03/2013

The ruling party in Cyprus lacked just one vote in the parliament to push on the bailout conditions it agreed upon on Saturday. The main dispute is about the one-off tax measure on deposits in the country, that are expected to gather some 5.8 billion Euro in order to stabilize the banks. The initial reports were for two rates – 9.9% for deposits over 100 000 Euros, and 6.7% for those below this sum. Now Cypriots try to renegotiate these terms in favor of the smaller depositors. The unofficial consensus is for 12.5% on the deposits above 100 000 Euros and 3 % on those below that sum. Several authoritative business newspapers predict even a higher rate of 15% for the deposits over 500 000 Euro. According to the governor of the Cyprus Central Bank people with relatively small amounts in all banks should be exempted from tax.

The European Central Bank announced that Cyprus has to decide how and by whom it will collect the sum of 5.8 billion Euro.

Today will be organized a teleconference between the finance ministers and central bankers of the European Union area, during which shall be discussed whether the new ideas are acceptable. The European Central Bank announced that Cyprus has to decide how and by whom it will collect the sum of 5.8 billion Euro. The finance ministers and the creditors in the face of the European Commission, the European Union and the International Monetary Fund are ready to confirm their promise of 10 billion Euros, but first they want to hear the exact figures and arguments that the measure will be efficient. The financial services in Cyprus make 70% of the gross domestic product. Currently, there is no such statistics for Bulgaria.

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The tendencies at the Sofia offices market

Mina Boycheva 19/03/2013

The Sofia office market is developing well and today we can point out a few tendencies that characterize it. In the last couple of years in the city of Sofia have been constructed smaller, boutique-type office buildings for mixed usage. This means that these buildings offer residential zone and office zone. The main reason behind that is that the investors are trying to answer the demand of the buyers in the city of Sofia. In year 2012, the focus was on small to middle-sized office premises with coverage of 80 to 200 sq.m of area. Of course, there was also a demand for large offices with size exceeding 1 000 sq.m, mainly from certain companies from the IT sector and from companies that were looking to expand their business. In general however, the large office buildings in Sofia often remained with too many large offices that had no companies to rent them. At the same time the smaller offices were answering the needs of the small business. According to the experts, in the near future there will be a balance between the supply of office centers in Sofia and their demand.

In year 2012, the focus was on small to middle-sized office premises with coverage of 80 to 200 sq.m of area. Of course, there was also a demand for large offices with size exceeding 1 000 sq.m, mainly from certain companies from the IT sector and from companies that were looking to expand their business.

In the last few years, many companies in Sofia decided to relocate their offices from the old buildings and locations into modern business centers due to the better working conditions and the reduced office rental levels in Sofia. For example, in year 2012, the offices in business centers of class A and B have reduced their selling prices with almost 7.5 %, compared to year 2011 and their rental prices with almost 16 %. In the end of last year, the average price of the office premises in Sofia was 5.80 Euro per sq.m. Currently, the office market in Sofia city is stable and no major changes are expected. The investment in Sofia offices is attractive and the companies are improving their offices and looking for more and better extras and facilities.

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