Ministers, MPs, business, union, banking and non-government sector representatives talked for almost six hours over measures to guarantee Bulgaria’s financial and economic stability amid the crisis.

“We are seeing the first signs of the crisis. Some sectors are beginning to gasp for breath, banks have tightened lending, and the production and financial sectors have started to lay off employees,” Prime Minister Sergei Stanishev said at the opening of the forum.

However, Bulgaria maintains stability and could be one of Europe’s leading economies in terms of growth, Mr Stanishev said complacently, quoting recession figures about the most powerful economies within the bloc.

During his 40-minute speech the prime minister reiterated many times that Bulgaria’s top priority was keeping its financial stability, as it was the basis of efficient economic and social policy.

Public spending is focused on construction with a view to propping up businesses and creating jobs, Stanishev said.

Bulgarian Construction Chamber chairman Simeon Peshov welcomed the prime minister’s commitment, saying seaside companies were in dire straits as orders dried up.

How will the other sectors be pulled out from the ditch if all is thrown to the construction industry, asked Vasil Velev, chair of the Bulgarian Industrial Capital Association (BICA).

Together with Confederation of Employers and Industrialists in Bulgaria chair Ivo Prokopiev, he called on the government to lower the social security contribution rate to leave more cash with employers.

This is a means of curbing unemployment, added Prokopiev, who is also co-publisher of Dnevnik daily.

A much more thorough analysis should be made on the state of the economy to map out anti-crisis measures, Prokopiev said, commenting on the prime minister’s statement the situation has been comprehensively analysed.

Bulgarian Industrial Association chairman Bozhidar Danev urged the government to shorten the VAT refund period and the assessment period for EU-funded projects.

Trade unions slammed the absence of measures to crack down on shadow construction, tourism and clothing industries, which they argued were the worst hit by the crisis and their workforce was least protected.

President Georgi Parvanov and Sofia Mayor Boiko Borisov remained silent throughout the meeting. Borisov told Focus news agency the Cabinet’s stimulus package was worth less than is being siphoned off from the National Revenue Agency.