Äugust september december unser partner 2004 · 2016-09-07 · •interconsult news december 2004...

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The New Public Procurement Act — Harmonisation with the EU Law Lilia Banakieva The new Public Procurement Act entered into force on 1 October 2004. It was adopted in the wake of the explicit recom- mendation of the European Commission to bring the domestic legislation in full com- pliance with the acquis in the public procurement field as a major criterion for the assess- ment of Bulgaria’s prepared- ness to absorb resources from EU funds after the accession. 1. The law broadens the scope of potential contractors by providing that a contractor under a public procurement contract may be any Bulgarian or foreign individ- ual or legal entity or associa- tions thereof. Thus the new Public Procurement Act enables legal entities which are not traders, i.e. not-for- profit legal entities, to take part in public procurement procedures. They could become contractors under public procurement con- tracts for services, for instance, in the field of mar . . . . . . . . . . . . . continued on page 3 LIVE ISSUE - - 1 ee - (). - - - - . 1. - - , - - - , - . - - - , - . . . . . . . 3 PENKOV MARKOV & PARTNERS èÖçäéÇ åÄêäéÇ & èÄêíçúéêà Updated Legal Information & Comments IN THIS ISSUE • Ç Åêéü • IN THIS ISSUE • Ç Åêéü • IN THIS ISSUE • Ç Åêéü • IN THIS ISSUE • Ç Åêéü ÄäíìÄãçÄ íÖåÄ Live Issue The New Public Procurement Act — Harmonisation with the Acquis Communautaire — Lilia Banakieva . . . 1 Opinions Is It necessary to issue social security books to employees? — Radoslav Iondrov . . . . . . . . . . . . . . . . 5 EU Law The European Union after the Signing of the European Constitution — Neli Nedkova . . . . . . . . . . . . . . . . . . . 8 Telecommunications Modern Communication Technologies Are Making Their Way also in Bulgaria — Svetoslav Dimitrov . . . . . . . . . . . . . 13 Labour Amendments to the Labour Code — New Obligations of Employers — Milena Gaidarska . . . . . . . . . . . . . . 18 Briefly . . . . . . . . . . . . . . . . . . . . . . . 20 Questions and Answers . . . . . . . . . 22 . . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . 5 . . . . 8 . . . . . . . . . . 13 . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . . . . . 22 unser Partner 2004 APRIL ÄUGUST SEPTEMBER DECEMBER Issue 15 Circulation 2,000 www.licpenkov-markov.com

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Page 1: ÄUGUST SEPTEMBER DECEMBER unser Partner 2004 · 2016-09-07 · •InterConsult News December 2004 ... contracts awarded in 2004, the bid of a small or medium-sized enterprise will

The New Public ProcurementAct — Harmonisation with theEU LawLilia Banakieva

The new Public ProcurementAct entered into force on 1October 2004. It was adopted inthe wake of the explicit recom-mendation of the EuropeanCommission to bring thedomestic legislation in full com-pliance with the acquis in thepublic procurement field as amajor criterion for the assess-ment of Bulgaria’s prepared-ness to absorb resources fromEU funds after the accession.

1. The law broadens the scopeof potential contractors byproviding that a contractorunder a public procurementcontract may be anyBulgarian or foreign individ-ual or legal entity or associa-tions thereof. Thus the newPublic Procurement Actenables legal entities whichare not traders, i.e. not-for-profit legal entities, to takepart in public procurementprocedures. They couldbecome contractors underpublic procurement con-tracts for services, forinstance, in the field of mar

. . . . . . . . . . . . . continued on page 3

LIVE ISSUE

������ ��� � � ��������-�� ������ - ���������� ������������ ��������� ���������

�� 1 ������ �� � �������e e ���� �� ����� � ��-��������� ������ (���).������� � ���� � ���������� � ������ ������� ������ ����� ������! ����"���� �� ���#������ ������������� ��������������� � ���� ����� �������� �� ����������������� ���� ������ ����-� � �$���� �� ��#��� ��-������ ���� ��"�� �� ��-��� %����� &������� � ���-����� �� ���� ���! ��' ���� ��������!����� ��.

1. ������� � #�!� ������ �����$������� � ���-������ �� ��������� ��-���� ���� ����"��, ��� �������� �� ��������������� ��"� �� ���� �!-�� �������� ��� �%"����-���� &� ������ ��� '�-������� ��$�, ����� � ��)-���� ���������!. *��� ��-�!� ��� �� ������� ���� ��"���� � %������ ��$��%��� � �������-�� ������ � �� '������-�� ��$�, ����� �� �� ��-

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PENKOV • MARKOV & PARTNERS èÖçäéÇ • åÄêäéÇ & èÄêíçúéêà U p d a t e d L e g a l I n f o r m a t i o n & C o m m e n t s

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ü ÄäíìÄãçÄ íÖåÄ Live Issue

The New Public Procurement Act —Harmonisation with the AcquisCommunautaire — Lilia Banakieva . . . 1

Opinions

Is It necessary to issue socialsecurity books to employees? —Radoslav Iondrov . . . . . . . . . . . . . . . . 5

EU Law

The European Union after the Signingof the European Constitution —Neli Nedkova . . . . . . . . . . . . . . . . . . . 8

Telecommunications

Modern CommunicationTechnologies Are Making Their Wayalso in Bulgaria —Svetoslav Dimitrov . . . . . . . . . . . . . 13

Labour

Amendments to the Labour Code —New Obligations of Employers —Milena Gaidarska . . . . . . . . . . . . . . 18

Briefly . . . . . . . . . . . . . . . . . . . . . . . 20

Questions and Answers . . . . . . . . . 22

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W��!� ���� � ����������������� — %��&�$���� ����� ����� ��� —X���! Y������� . . . . . . . . . . . . . . . 1

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_ ������! `������ �� �%�� —��� ����"���! � ����������! —\����� a� ����� . . . . . . . . . . . . . 18

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u n s e r P a r t n e r

2004

A P R I LÄ U G U S T

S E P T E M B E RD E C E M B E R

Issue 15Circulation 2,000

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Page 2: ÄUGUST SEPTEMBER DECEMBER unser Partner 2004 · 2016-09-07 · •InterConsult News December 2004 ... contracts awarded in 2004, the bid of a small or medium-sized enterprise will

Dear clients, colleagues and friends,

As you will notice I am glad to announce on thefirst page of the issue that our edition is in part-nership relations with Wirtschaftsblatt publishedin German, whom we have authorized to publishour materials.

With a view to the harmonization of our legislationwith the EU Law the Live Issue is dedicated to thenew Public Procurement Act, which attracts cer-tain interest.

I should note especially the new EU Law column and the first article in it dis-cussing the European Constitution.

The article concerning the modern communication technologies is particular-ly up-to-date with regard to the ongoing de-monopolization of the sector.

Traditionally interesting for the investors are the articles dedicated to therequirements for employers envisaged in the Labour Code, as well as specificanswers of actual questions.

Looking forward to your suggestions, I remain

Yours,Vladimir Penkov

ч„Ë ÍÎËÂÌÚË, ÍÓÎÂ„Ë Ë ÔËflÚÂÎË,

(���� )�*���)����, �,� �� ����� ������ � �� �����- �� .� ���*,�, /���0��� �)����� �������� �����1����� ����0���� � �)��)�,�� ����-��� �)�� Wirtschaftsblatt, �� ��7�� �-� ������������ ������� ���8*���8�� -�������� �� �)�������.

:� ;����,� �� <��-���)� ���� �� )���������������� �� � ���� ��=�����7���� ��>) ���8������ ��-� � ��������� �� ����� ?���� )��*,��������� ����/��, ��7�� �����)����� ��������� �������.

:��*��� ��*���)��- � ������ �8*���� =�����7��� ����� � ������-������� �� ���, �������� �� =�����7����� �������8 ��.

@�������, ��������� �� �����-������ ��-8���� ����� ��<����;��,� ���*��� ���8���� � ����� �� ��-�������)� �� �� �������.

A���� ����� ��������� )� ������������� �� ��������, ����������� ������������ � (������ �� ��8�� �)�������� )� ��*�����������,����� � ����������� ��;����� �� ���8���� �������.

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Editorial Board

ChairmanVladimir Penkov

Svetlin AdrianovMilena Gaidarska

English Translation and Editing

Vera Georgieva

German Translation and Editing

Vladimir Penkov

Editorial Office

Bl. 22, Entr. A, Iztok Dstr., 1113 Sofia, BulgariaTel (00 359 2) 9713935Fax (00 359 2) 9711191 e-mail: [email protected];www.licpenkov-markov.com

This info bulletin is produced for clientsand proffessional contacts of LegaInterConsult - Penkov, Markov & Partners,as well as for all interested readers. Theinformation and opinions which it containsare not intended to be a comprehensivestudy nor to provide legal advice andshould not be treated as a substitute forspecific professional advice concerningindividual situations.

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•L e g a •I n t e r C o n s u l t N e w s D e c e m b e r 2 0 0 4

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��$�, �.�. �� '�������� ��$� � ���������-�� $��. *���� ��$� ��)� ����� �� ������ � -��������� ������ �� ������ � �����-���� ������ � %��%�� �������� �� ��-%������ �� �� ���� � ����������� ���-���, ��%��� � �������! � ����������� ��. �� ������� �� � ��"������ � %���-��� �� �������� � ���� ������ �� ��-���������� ������, ����� �� ����� � -��� ��� � ����������� �� �������������$��� �� �� � '�������� ��$�.

2. ^%� ������ ������ �, �� ������ � ����������!, �� ������� �� � ������ �� ��-������� ������ �� ��! )����� �� ��������%���� ������������� �����.*� � ���!�� ��������� ����� �� &����, ��� ��"������� �� ��������� �������� ���� ���� ���������$��, � �� ���� ��-����������� �����, ����� $��� �� ���-�����, �� �������#���!�� �� � ����-�� �� ��������� ������ �� %������ �� ������������ �������!, � ���� ��"���-���-���� �%�����, ����� � �� ���� !���-�� ����#���!��, �� ��� � ����%������� ������� �� �� � ����.

3. d������ �� ���, �� �� ��-����� ����-� � ������ ��������� ������, ������ ��-������� ����� � ������!�� ����� ������ �� ������ � ��������� ��-����. *� � ����� �������� � � ��-�����-�� ������!�� �� � ��� �� ����$���� �%������ � � ��������, ����� ���!� ����� ������ �� ������.

4. ]�����%����� �� ������� ��$��%� �� ������ �� ��������� ������ �� �����-���� � � �������� � ��"���� � ��-�"���� �� ��� ����� ���� ��$��%� �������!�� �� ��!����� � ����%� � ��-���. ��$��%��� �� �����!�� �� ��!��-��� � ��$��%�, �� ��!�� � ��"����!����"�� ������ � ������!�� ���% �-�� �� ������ � ���� ��� ����� ����� ��-������� ��$�. *� � ��$��%� ��"� �� ��� ��� �, �����, ���� �������� ��� ��

3

ket studies and public opinionpolls, R&D, etc. This opportuni-ty to participate will help theselegal entities raise additionalresources and thus contribute tothe attainment of their not-for-profit goals.

2. Another important feature is the explicit pro-vision of the law that the acts of the contractingauthorities for the placement of public pro-curement orders are not individual adminis-trative acts by their nature. This change fol-lows logically from the fact that the contractingauthorities act as administrations rather thanadministrative bodies, which comes to showthat, in their relationships as contractingauthorities, they do not exercise any powerfunctions but they act as civil law entities. Thischange introduces greater clarity as to theopportunities for attacking the acts under thelaw.

3. New thresholds, three times higher than for-mer ones, are envisaged for the various typesof public procurement contracts and there aremore detailed rules on the calculation of thevalue of public procurement contracts. Theserules will contribute to the more accurate cal-culation of the guarantees for participationand performance as they depend on the valueof the contract.

4. The existing public procurement procedureshave been supplemented with the opportunityfor holding some new types such as the nego-tiation procedure without announcement andthe competition for a design. The negotiationprocedure without announcement is a proce-dure, in which the contracting authority nego-tiates the clauses of the contract with one ormore specified persons. However, this proce-dure is applicable only to a limited number ofcases, where the signing of the public procure-ment contract with another person wouldinfringe upon copyright or other intellectualproperty rights or the service is awarded on

LIVE ISSUE ÄäíìÄãçÄ íÖåÄ

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the basis of a design competition by sendinginvitations to all eligible participants to takepart in the negotiations, etc. Another com-pletely new procedure is the competition for adesign, whereby the contracting authorityacquires a plan or a design selected by an inde-pendent jury on a competitive basis. In thiscase, the contracting authority is free to decidewhether to make the competition for thedesign part of a public procurement contractfor service or award it on the basis of a sepa-rate contract.

5. The new Public Procurement Act providessome preferences in the evaluation of the bidsof small and medium-sized enterprises. Forinstance, in the case of public procurementcontracts awarded in 2004, the bid of a small ormedium-sized enterprise will be assessed asthe lowest provided it does not exceed the low-est bid of another bidder by more than 15 % (in2005 the percentage will be 10 % and in 2006 —5 %). The preference, however, is valid until 1January 2007.

The way of attacking acts issued in connectionwith public procurement procedures has beenchanged fundamentally. A specialised ArbitrationCourt will be set up at the Public ProcurementAgency. But its powers will be relatively limitedsince it will be able to administer justice only withregard to public procurement issues.

The new rules read that the decisions of contract-ing authorities may be attacked under the gener-al terms and conditions applied to claims servedpursuant to the Civil Procedure Code, includingthe opportunity for “summary process”. Theprocess is always at two instances and the firstinstance is always the district court. The mostimportant aspect of these changes is that theattack will no longer lead to suspension of thepublic procurement procedure automatically. Inorder to stay the procedure, the claimant willhave to explicitly request the court to do so andthe court may suspend the procedure as a securi-ty measure at its own discretion. Although this

��%���, ���� ������, ������ � ���������� ����������� ������ �� �%�� ��$� ������� �� ��%#���� �� ������ ��� �%-�� ��� �� ��������%������ ����������,��� %��%���� �� � ���� ���� ������ ���-�%� � �����, ���� �� � ����� ������ �%������ �����!���� �� ����� ������-�� %������$� � �.�. ]���� ��� � � ��$�-�%��� � ����%� � �����, �� ��!�� � -��"����!� ������� ���� ��� �����, � -��� �� �� ������ "%� � ����� �������� ����%�. *%� � ��"����!� ���� ��"���� ��� �� �#�� ���� ����%��� � ����� �� ���� ���� �� ��������� ��-���� � %��%��, ��� �� ���� � ��"�� �� ���'������ �� ������� �����.

5. W��!� ��� ����"�� ��&���$�� ���$��!����� �� �&����� �� ����� � ���-�� �����!��!. *��� ������, � ������-��� ������, � ������ �� 2004 �., �&�-��, �������� �� ����� ��� ����� �����-!��� �� �$��!� ���� �� -�����, ��� �� ���-�#�� � 15% �� -������� �&���, �����-"��� �� �%� �������� ( � 2005 �� � ��-$��� � 10%, � 2006 �. — 5%). ��&���$�!������� � ������ �� 01.01.2007 �.

_ $!�� � ������� ���� � ������� �� ��-�����, � ������ � � �� � ��$��%��� ���������� ������. �������� � �� ���-���� �� ���$���� ��� e����"�� ��� ���e���$�!�� �� ��������� ������. W�������������! ����� �� �� ��������� �����-����, ���� �� �� ��"� �� ���� ��� ������ �����, �� ��� � ��������� ������.

W���� ����� ����"���, �� ���� � ��-����� �� �#���!�� �� � ��"������� ����������� ������ �� ���� ����! ���� ���� a�`, ���� ��'������� � � ��"�� ����-������ �� �. ��. “�� � ��� �����”. ���- ������� � �%������$�����, ���� ��� ��-����$�! ����� � � ����!� ���. W� -������-���!� ������ �� ����#���� ������� ����������� ����� � &�����, �� ������������ �!�� �� ��� ���������� �� ������ ��

•L e g a •I n t e r C o n s u l t N e w s D e c e m b e r 2 0 0 4

4

LIVE ISSUE ÄäíìÄãçÄ íÖåÄ

Page 5: ÄUGUST SEPTEMBER DECEMBER unser Partner 2004 · 2016-09-07 · •InterConsult News December 2004 ... contracts awarded in 2004, the bid of a small or medium-sized enterprise will

can be considered as a positive step, it is far frombeing sufficient. One could contemplate a moreradical solution, i.e. to stipulate that the acts onthe selection of the winner are not subject toattack but the contracting authorities may be heldadministratively liable in the case of violation ofthe provisions of the Public Procurement Act andalso liable for damage under the general termsand conditions of the civil law process. In ouropinion, such a legislative solution would ensuregreater stability of public procurement contractssigned, contribute to the faster satisfaction of theneeds leading to the procedure and, in somecases, prevent the missing of deadlines for theabsorption of resources from international funds.

Is it necessary to issue social security books toemployees?Radoslav Iondrov

Notwithstanding the codifica-tion of the legal matters relatedto social security, the obser-vance of the law always revealssome specific features whichwarrant further guidance as toits application. In view of the

need for proper documentation of employees forsocial security purposes, it is important to see inpractice whether social security books need to beissued to employees who are holders of work-books.

Prior to 31 December 1999, in the cases of actualemployment relations “private employers” were

��$��%��� �� ����������� ������. �� ��������� ���� �&���, ���$�� �� �!�� ������� � ���� ������ ��� ���� � ��� ������ ���� ��$���� �� ��"� �� ����"� ���-��� �� ��$��%��� ���� ��� ��������� �!-��. \��� ��� �� ��"� �� �� ������ ���� ����-"������ ������$�!, �� ��� �� � ����������.Y� ������� �� �� ������� � ��-���������#���� �� ����� — ������� �� ������!���� �������� ��$��%��� �������� �� �� ���-��"�� �� ��"�����, ���� ������ ��� ���-�� � ��"������� �� ���!� ���������������������� �� ��%#���� �� � ���������� ���, ����� � ��������� � ��� �� ��-��! ���� ��. ]������, �� ������� �������-����� �#���� �� ����� �� ������ ��-��-�!�� ���������� �� ���'������ ������ ���������� ������, �� ���������� � ��-�� ��� �����!��� �� �%"����, ����"������"������ �� ��$��%�, � �!��� ��%����� ���������� � ���%������� �� ����� � %��!��� �� ������ �� ��"�%������&�����.

��� <�6�2� 1� � ���8�����1�� ��=� ����1������ � ���6��� ��������>����?C������� D������

d����� ����&���$�!�� �� ������ %����,������������ �������������%���������������#���!, ��� ����� �� ����� ������ ��� ����� ����������, ����� ����� ���%"��!� �� ��������� ������ �� ��������-�� �%.

] ����� �� �������� �&��!�� �� ����)���-���� ���%�����$�! �� ����%!����� �� �-�����$� � ��%"�����, ��������� �����!����� ����)����� �� � � ������� �� ����%-������ ���"�� �� ��������� �� �%����������#���� � �����"�� � ������ �� �-���������! �%��� ���"��.

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OPINIONS åçÖçàü

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required, for the purposes of the public socialsecurity system, to issue not only a work-bookbut also a social security book to each employee(Order No. 91-01-34 of 12 February 1998 concern-ing the registration of payers of social securitycontributions). The general term “privateemployers” included legal entities and individu-als who were employers under the existing lawsbut had to be distinguished from governmentinstitutions and state-owned enterprises. Thosepractices of the social security system were basedon extensive primary and secondary legislation,i.e. the Rules on the Implementation of Section IIIof the Labour Code of 1951, the ImplementingRules of the Pensions Act, the Regulation onWork-books and the Length of Service, whichwere all repealed with the entry into force of thenew Social Security Code.

Since 1 January 2000, i.e. the effective date of theSocial Security Code, employers registered aslegal entities in any of the legal forms specified inthe Commercial Code have no longer beenrequired to keep social security books and to makeentries of the social security contributions in them.

However, they are still required to issue socialsecurity books and make entries of the socialsecurity contributions paid provided they act as atrade representation registered with theBulgarian Chamber of Commerce and Industry.Those who have not made entries of the socialsecurity contributions paid into the social securi-ty books of their employees may do so for anypast period on an ex-post basis.

It is the head office of the National Social SecurityInstitute (NSSI) which issues social securitybooks. For this purpose, each employee has to fillin the form entitled Application for the Issuance of aSocial Security Book. The document to be attachedto the application is the employment contract (inthe case of past periods) at the time for which thelength of service is to be recognised for socialsecurity purposes and the subsequent verificationdone by the social security authorities with anentry into the social security book.

^� 31.12.1999 �. �� ��������� �� �� ������-�� �%��� �������#���� � $����� �� ��"����� ��������� ����%!��� ��#� ����)�-���� �. ��. “����� � ���6��1�” �� � �������� � �%����� ���"�� ���� � ����%����-�� ���"�� �� ���� �� ��%"����/�������(������ t 91-01-34 �� 12.02.1998 �. ���������� � ������$�!�� �� ����%�������). *���&��%������� ���� ���!��� “������ ���-��������” ��)���#� '�������� � &� ����-�� ��$�, ����� �������� �� ������� �����-�������� ���)� ��������� ����������, ����#� ����)����� �� �� ��������� �� ��"�-���� �����!��! � %��"����!. *� � �����-�� �� ����%�������� ����� �� �� ��#� �-)% ���$� ������ � ��� ������ ������-�� ����� — ������� � �������� �� �!� III�� `������ �� �%�� �� 1951 �., ������� ��������� �� ������ � ��������, W����� ��%����� ���"�� � �%���! ���", ����� �!)��������� ���� �� ����� ���� �� ���! `�-���� � ��$������� ����%!��� (`]�).

�� 01.01.2000 �., ���� ���� `]� �� � ����, ��������������, ��������� ���� '���-����� ��$� ��� ���� �� &�����, ���������-��� *������! ����, ������� ����"���-��� � ����� �� ����%������ ���"�� � � ��-���! ��� �!) �� ��������� ����%�����������.

���� � ��, �����, � �������� � � ����� ������%������ ���"�� � �����! ����� �� ���-������ ����%������ ����� ����%����-���� ���"�� � ��� � �����������, ����� � -�#�)� ��!�� ������� �� ���� ���� ��-����� �������������, ��������� ���Y��������� �������-����#���� ������.��� � �� �!), ����� �� �� ��� !��� ����%-�������� ���"�� �� ����� ��%"�����/�-�����$� ��������� ����%������ �����,����� �� �� ����!� � ���� � ����� ������ ��� ���� ����.

_ ������� �� ����%������ ���"�� �� � �-#� �� $��������� %������� �� W�_, ���� � $���� ���� ��%"����/������� �!�� ��

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The following two hypotheses should be kept inmind in connection with the verification of thesocial security book by the NSSI authorities:

A) If no financial audit was performed at the traderepresentation in the period for which thesocial security book is to be issued, the book isto be verified by any authorised body (finan-cial auditor) of the social security system;

B) If financial audits were performed, the socialsecurity book should be verified by the finan-cial auditors who performed the audit.

In closing, it should be noted that the still existingrequirement for trade representations to issuesocial security books to their employees who areholders of valid work-books is somewhat void ofpractical relevance. Trade representations dulyregistered with the Bulgarian Chamber ofCommerce and Industry have their BULSTATnumber, social security number and tax registra-tion like all legal entities registered with therespective district courts. Hence they can be easi-ly identified for social security and tax purposesand the competent authorities can exercise con-trol on the way they fulfill their obligations underthe Social Security Code without any limitations.Therefore there is no obstacle to the removal ofthe requirement for trade representations to keepsocial security books of their employees, whichwill facilitate their operations without any viola-tion of the legitimate rights of the employees.

������� %������! &��%�! — E����� )� �)-������ �� ���;8������� ������. `�� ���� ������� �� ������� ���'��� �%�� ����� (��%��! � ���� ����� �����) � �����, ������ �� ���� �� ����� �� ����%���������" � ����������� �% ���� �� ����%�-������� ����� ����%�������� ���"��.

d� � �� ��� ��!����� �� ����%������-�� ���"�� �� ������� �� W�_ �!�� �� ������ ����� �������� �� )����� �:

e) e�� �� � � �#��� &������� �� �! ����������� ������������� � ������, � �� �� �� �� � ���!� ����%������ ���"-��, �!)���� ���������� ���� �� ��"��� �� � �#� �� ���� �����"�� ���� (&�-����� �� �) �� ��$������� ����%!���.

Y) e�� ����� � ������ &������ �� �� ��� �#���, �� ������ �� ����%������-�� ���"�� ����� �� �� ����� �� � �-#����� �� ���� &������� �� ��.

d ���'����� ����� �� �� ������"�, �� ���- ����� �� � ������ � � ����� �� ����%�-����� ���"�� �� ��%"������� �� ���������������������� �� ������� �� �������%��� �������#���� � �����"�� ������%��� ���"�� � ���!���� ��#��� �� ���-������� ����)�������. Z����������� �� %�-�������! �� ������� ���������������� Y��������� �������-����#���� ��-���� ����, ����� � '���������� ��$�, ����-�� �������! ������ ��� ��������! ��-�"�� ���, YuX]*e* ����, ����%������ ��-�� � ������� ������$�!. *�� ����%!������"�� ������&���$�!, ����� � ����%�-�����, ���� � � ������� $��� � �� ��!� ������� �� ������������� ����� �� ���!���-�� ������ �� ����"���!�� �� ���� ����%-����� �������� `]�. ��� ���, �!�� ������ �������� � ����� �� ����%������ ���"-�� �� ��������� ������������� �� �����-��, � ����� �� �� %����� �!)���� �� ����, �� ���� ��%#�� �������� ������� �� ����%���-�� ��$�.

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The European Union after the Signing of theEuropean ConstitutionNeli Nedkova

The 25 EU Member Statessigned the European Constitu-tion in Rome on 29 October2004. The choice of the venuefor the ceremony, CampidoglioBuilding, Sala Degli Orayi andCuriazi, was not accidental as it

was in the same hall that, in 1957, the six found-ing members — France, Germany, Italy, theNetherlands, Belgium and Luxembourg — signedthe Treaties of the European EconomicCommunity or EEC (renamed with theMaastricht Treaty of the European Union (EU)into the European Community (EC) in 1992) andthe European Community for Atomic Energy(Euratom), referred to as the Treaties of Rome.

The Constitution will enter into force after its rat-ification by all Member States in accordance withtheir national legislation. For this purpose, someMember States will hold a referendum.

The ceremony was attended by the PrimeMinister and the Minister of Foreign Affairs of theRepublic of Bulgaria. They put their signaturesunder the final protocol of the ceremony in theircapacity of leaders of an observer and accessioncountry. The signing of the final act has no legal-ly binding force on Bulgaria with regard to thetext of the Constitution. The EuropeanConstitution will become binding on Bulgariaupon its accession to the EU and the ratificationby the National Assembly. The accession itselfwill be carried out through the signing of anaccession treaty by the Prime Minister and theMinister of Foreign Affairs, which is subject to rat-ification. The holding of a national referendumprior to the ratification of the accession treatyunder the Bulgarian laws is at the discretion ofthe National Assembly. Since Bulgaria’s EU acces-sion, unlike the membership of other internation-al organisations, implies relinquishing of part ofthe national sovereignty to the EU bodies, the

4���������� ��E� �1�6 ��6�������� � 4�-������� ����������G��� G������

W� 29 ������ Z�� 25�� ��"�� ������ ������ ���! ��' �������)� ���� ������������%$�!. _ ���� �� �!����� �� $����-��!��, Campidoglio building, Sala Degli Orayiand Curiazi �� � ��%����, ������ ��� �� 1957 �. #����� ��"�� %��������� — h��-$�!, a�����!, _����!, w������!, Y����! �X'�����%� — �������� �������� � %��-�!��� �� ���� ����� ������������ ���-���� - �_� (������%��� �� 1992 �. �\�����)����! ����� � �� ����� ��-�� ���! ��' (�]) �� ���� ��� ������� -(��) � ���� ��� ������� � ������ �����!(������), � ����� ���� Z������� ������.

`������%$�!�� �� �� � ���� ��� ���� �������� ���&�$���� �� ����� ��"�� ����-��, ����� �� ��$��������� �� �����������-��. �� $���� ���� �� ��"���� �� ���� ��-���� �&����%�.

W� $������!�� �������)� � �������-����������!� � ��������� �� ��#���� �-���� �� Y�����!. *� ����"�)� ��������� ����� ���'�������! ������� �� $������!��, ��������� �� �� ����� �� �����-����'��-��� � �������� ������ �� �]. ����������� �� ���'�������! ��� �!�� ��� ��� ������ ���� � Y�����! �� ����#���� �� �������� `������%$�!��. ���� ����� �������%$�!�� ������� ����"������ ���� � Y�����!��� ���� ��������!����� �� ���� ���� ���] � ���&���$�!�� �� W������� ����-���. ]����� ��������!��� �� �� ��������� ����������� �� ����� � ��������!����� �������—����������! � �������� ����#���� �����, ��������� �� ������� �-��&���$�!. ]���� �� ���������� �������-������ ���"������ �� ��$������� �&�-���%� ���� ���&���$�!�� �� ������ ���������!��� ���� �� ��$������ �� W�-������ �������. d ��� �� ����� &����,�� �� ����� �� Y�����! �], � � ���� ��

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holding of a referendum should be considerednecessary with a view to the protection of the con-stitutional rights of citizens from whom, pursuantto Art. 1, para 2 of the Constitution the wholestate power is derived and who are the primaryexponents of the national sovereignty. Due to theprevalence of the acquis communautaire over thedomestic legislation of the Member States, thetext of the European Constitution should serve asa guideline in the course of the pre-accessionpreparations for undertaking the relevant legisla-tive changes, including amendments to theConstitution so that to ensure the compliance ofthe national legislation with the provisions of theEuropean Constitution.

After its entry into force, the EuropeanConstitution will supercede by a single act theseries of treaties adopted since 1957, which arecurrently underlying the EU. The objective is notso much to introduce any changes of material sig-nificance into the institutional framework andsubstantive law as to create much higher level ofclarity and transparency with regard to the goalsand institutions of the European Union.

The European Union emerged in 1992 upon thesigning of the Maastricht Treaty of the EuropeanUnion (as amended with the Amsterdam Treatyin 1997 and the Treaty of Nice in 2001) by the then12 EC Member States. Pursuant to Art. 1, para 3 ofthe Treaty of the EU, the European Union is basedon the European Communities supplementedwith the policies and forms of cooperation creat-ed by the Treaty. In this sense, the EU does notreplace the European Communities but it pro-motes the integration process to a higher level ofcooperation among the Member States by supple-menting the economic integration within theCommunities with the political cooperation inforeign affairs and security, on the one hand, andjustice and home affairs, on the other. The Treatydoes not constitute the EU as a legal entity but theEU could be described more accurately as theestablishment of an increasingly closer coopera-tion among the Member States with a view to theattainment of the objectives laid down in the

��������� �%�� ��"�%������ ����� �-$��, � �� ��� � ����������� �� ���� �� ��-$�������! �%������� ��� � �� ������� ������' �, ���"������ �� �&����%� ��������� �� �� � ���"�� ���� ����)�����, ������ ������� �� �������%$������� ��� ����"������, �� ����� ����� �� ��. 1, ��. 2 ��Y��������� `������%$�! ��� �� � $!������"��� ���� � ����� �� �������� ����-���� �� ��$�������! �%�������. ����������� �� ����� �� ���� ���! ��' ��� ���#���� ������������� �� ��"�-��� ������, ������� �� ���������%$�!������� �� ����%"� ������ �� ��������-����������� ��������� ���� ������ � ���-���� �� ����)������� ������������ � ����-��!, ��� ����� � ���������� � ������! ������������ `������%$�!, � ����� ����� !�-�� �� ��$��������� �� ������������� � �� -���� � ������.

]��� �� ����� ����, ���� ����� ������-�%$�!�� �� ����� � ���� �������� ��� ���-��$��� �� ������, ����� �� 1957 �. �����,�)% ����� �� �� �� ������� �], ���� $��-�� � �� ������ ��"������ �� ���������������%$������� � ������������� � ��-����!, � ����� ��-���!�� ������ �� �����-�� �� ����� !����� � �� ������ ������� $�-���� � ������%$���� �� ��' �.

���� ���!� ��' � ���� �� 1992 �. ������������ �� �����#���� 12 ��"�������� �� �� �� \�����)����! ����� ��� ����� �� �] (� ����� � �������� �� 1997 �. � ^����� �� e������� � �� 2001 �.� ^����� �� W�$�). ]������� ��. 1, ��. 3 ��^����� � �] ��' �� �� ������ �� ��-�� ����� ��������, ��������� �� ����������� &����� �� ���%��������, ����� �� �� ��-�� ������ � �� � �����. d �� � ������ �]�� ���� �!����� �� ���� ����� ��������,� �����! ������$�����! ��$�� �� ���� ��-����� ������� �� ����������� �� ���%�-��������� ��"�% ��"���� ������, ���� ��-���� �������������� ������$�! �������� ���������� � ����������� ���%��������

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Treaty. For the sake of clarity, it is often explainedwith the comparison to a temple with three sepa-rate pillars of different legal nature:

• The European Communities (these are the ECand Euratom at present);

• Common Foreign and Security Policy (CFSP);

• Cooperation in the field of justice and homeaffairs (JHA).

From the perspective of international law, the EU isan international organisation of legal capacity butit has supranational essence or this is the so-called“shared sovereignty” which is unique in interna-tional law. The supranational essence is expressedin the opportunity for the Council of Ministers tomake decisions by a majority vote of the MemberStates rather than unanimously so that MemberStates may be bound by a EC decision that they didnot support in the first place. In other words, bysigning the Treaty of the European Community theMember States relinquish part of their state sover-eignty to the community represented by its bodies.For this reason, the EC bodies may make decisionsand create legal acts of direct and universal effectwith regard to the Members States. In some cases,the scope of this effect includes also individual cit-izens and legal entities as is the case with the ECRegulations. The acts adopted prevail over thedomestic legislation of the Member States withoutany need for their ratification.

It should be noted that these powers of the ECbodies is not boundless but it is based exclusivelyon the principle of the explicit authorization, i.e.

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• ���� ����� �������� (�������!������ �� �� � ������)

• ���� ��#�� �������� � �������� �� ��-�%������

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EC JFSP JHA

EU

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the EC supranational nature is limited only tothose competences which the Member States haveexplicitly transferred to the Community and theEC does not possess the inherent national state“competence for competences”, i.e. it does notprovide the opportunity for bodies to extend theirpowers on their own. This competence is still inthe hands of the Member States alone, whichcould exercise it through subsequent amend-ments to the Founding Treaties.

The spheres whose regulation on the basis of theTreaties is the exclusive competence of theCommunity are the customs union, the commonforeign trade policy, the establishment of theinternal market, the management of the commoncurrency, the regulation of competition, etc. Inother spheres such as the environment, consumerprotection, agricultural policy, internal marketand others, the competence is shared between theEU bodies and the Member States.

In the spheres which the Treaties do not specify astheir exclusive competence, the EU bodies shouldabide by the principles of subsidiarity and pro-portionality, in accordance with which they inter-vene in the regulation of a specific sphere onlyinsofar as this regulation could not be effectivelyachieved at the domestic level by the MemberStates, confining themselves only to what is nec-essary for the attainment of the goals set out inthe Founding Treaties.

The legal nature of the second and the third pillaris somewhat different because these pillars areexpressed in an enhanced cooperation of theMember States, which is aimed at coordination ofwould-be political strategies rather than at uni-formity. In these cases, decisions are made on theconsensus basis typical of all international organ-isations and they acquire binding nature onlyupon their ratification.

With the entry into force of the EuropeanConstitution, the regulation of the “three pillars"will be integrated into a single act, while the EUwill become an international law entity of legal

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capacity, which will be able to be a signatory totreaties and agreements and to join internationalorganisations. The EU will continue to exercise itspowers through the existing EC bodies — theEuropean Commission, the European Parliament,the Court of Justice, the Council of Ministers andthe European Council, as well as the newly estab-lished EU Foreign Minister. Thus the EU willacquire the supranational nature typical of the ECso far and hence it will have the powers to adoptlegal acts of direct and universal effect, prevailingover the national legislation of the Member States.In the exercise of its powers, the EU will continueto observe the principles of the limited authoriza-tion, subsidiarity and proportionality. Part Two ofthe European Constitution will implement alsothe Charter of Fundamental Rights signed by theMember States in Nice as early as 2001. It willguarantee a broad range of fundamental socio-economic and political rights and freedoms to thecitizens of the European Union.

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] �� ��� ���� �� ���� ����� �������%-$�! ���������$�!�� �� “���� ������” ������ ��������� ������ ���� ���, � �] ��������� ��������� �� ����������� �%������ ��"�%�������� ���, ���� �� ��"� ������ ����� �� ������ � �������#���! ��� ����%� ��"�%������ ����� �$��.]���� �������! �] �� �������!� �� ������#���� ����� �� �� — ���� ��� ����-��!, ���� ��� �������� � ]��, ]��� �����������, ����� � �� ���� ���! ����� ����� ������! ���� �� ��#��! �����-�� �� �]. *��� �] �� ������� �����$�����-��! )�����, ����"��� �� ���� �� ��, � ����� � ���������� � ������� �� ��������� � �!�� � %�������� �� ����, ���-�� �)������ ��� ��$��������� �������-������ �� ��"���� ������. �� �������!-��� �� ����� �������! �] �� �����"��� �� ����� !� � ���$����� �� ���������-�� %������������, �%���������� � ����-$���������. d ���� ��� �� ���� ����� ���-����%$�! �� ���� ������������� � w����� � �������� ���, ��������� �� ��"���������� ��� �� 2001 �. W�$�, � ��!�� ����"������ �� ���� ���! ��' �� ����� ��-������� #��� ������� �� ������,��$�����-������������ � ����������� ���� ������.

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Modern Communication Technologies AreMaking Their Way also in BulgariaSvetoslav Dimitrov

After the initial statement ofinterest by applicants for anindividual license to providetelecommunications through apublic telecommunications net-work from the fixed radio ser-vice of the “point-to-multi-

point” type, the Communications RegulatoryCommission (CRC) issued Decision No. 1751 of16 September 2004, stating its intention to issuethat type of telecommunications licenses. TheCommission announced its intention to issue twolicenses with nationwide coverage within the fre-quency range of 3.4 — 3.6 GigaHerz. Fourteen let-ters of interest were served by applicants for sucha license before the established deadline on 25October 2004.

Thus the CRC made a further step in the develop-ment of the telecommunications sector, focusingits attention on a modern wireless technology withlots of prospects from the regulatory viewpointand from the perspective of potential operators.

The "point-to-multipoint" technology is a techno-logical application of a wireless telecommunica-tions network from a fixed radio service. It hasdeveloped substantially in the other Europeancountries, where the regulatory bodies issuedsuch licenses some years ago. The technologyoffers the opportunity for attaining a quality levelof telecommunications services, which is higherthan the quality of service provided through aconventional optical cable. It provides for broad-band data transmission at a speed ranging from128 kbps to 34 mbps. This type of telecommunica-tions networks is used for a wide range oftelecommunications services such as voice anddata transmission, access to Internet, fax, telex,video-information and multimedia applications.

The most important advantage of the wirelesstechnology is the opportunity for providing

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]��� ���������� �!���! ������ �� ���-������ � � ����� �� ������%���� ��$�� �! � �������!��� �� ��������������! �� ��������� ����������������� ��"� �� ��-����"���� ������%"�� �� ��� “����� �������� �����”, � �#���� t 1751 �� 16 ������-� 2004 �. `�����!�� � ��%����� �� ����-����!�� (`Z]) ��!� ����� �������� � � -����� �� ���� �� ����������������� ��-$�� ��. ��!����� �������� �� � � ������� �� ��$�� �� � ��$������� ��)�� ������-��! ����� �� 3,4 — 3,6 ����)�$�. ^� � �������� ���������! ���� ��� - 25 ������ 2004�. �!)� �������� ������������ ����� � ����-�� �� ��������� � ��$�� �!.

�� �� � ����� `Z] ����� ��� ������ ���� ���� �� �����������������! �����, ���������� ��������� �� ��� ������ � ���-�������, ����� �� ��%������ ������ �����,���� � �� ����� �� �����$������� �������,�� "���� ��)������!.

*�)������!�� “����� ��� ����� �����” ����-���!� ��)��������� ����"���� �� �� "��-�� ����������������� ��"� �� ������"��������%"�� � ��� ��� ����� � ���� ��-�������� ��"�� �� ����, ������, �����!����� ������ ��%������� � ����)� �����-�� ��$�� ��. *� � ��)������! �������! � -��"���� � ��������� �� ������� �� ������-������������� %��%��, ��-����� �� ��� ��%��%����, �������!�� �� ��������� ����-��� �����. *�)������!�� �� ��!� �� �� ����%-� #��������� ����� �� ����� � $�&�������� �� 128 �������� ���%��� �� 34 ����-���� ���%���. *� � ��� �������������������"� �� � ��� �� � �������!�� �� � -����� ����������������� %��%�� ���� ������� ���� � �����, ������ �� �������, &���, ��-����, ������&���$�! � �%������� �� ��-��"���!.

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telecommunications services to places, whereoptical cables would be unfeasible or financiallyprohibitive. The technology makes it possible tobuild networks in both scarcely populated areasand densely populated urban areas, which makesit particularly suitable for the establishment ofdata transmission public networks with nation-wide coverage. Last but not least, the establish-ment of this type of network is much cheaperthan the installation of cables.

A number of issues arise in connection with theupcoming licensing and subsequent use of the"point-to-multipoint" technology, some of whichrelate to the issuance of individual licenses.

The first question is whether the issuance of anindividual license by the CRC requires the hold-ing of a competitive bidding procedure or not.

Pursuant to the provisions of Art. 48, para 2 of theTelecommunications Act and Art. 2, para 1, sub-para 6 of Regulation No. 13 of 22 December 2003,telecommunications activities are performed onthe basis of an individual license, where limitedresources are used and the telecommunicationsnetwork is built on a stationary radio service. Inthis connection, the technology in question hasundoubtedly to be subject to individual licensingunder the Telecommunications Act.

The Telecommunications Act specifies explicitlythe prerequisites for choosing one or the otherprocedure.

The major prerequisite for the issuance of alicense on the basis of a competitive bidding pro-cedure or a public tender as specified in Art. 55,para 1 of the Telecommunications Act is the use ofa limited radio frequency spectrum. However,there are some exemptions from this hypothesis,which are explicitly indicated in the provisions ofthe Telecommunications Act.

The most important exemption relates to thenumber of applicants in the announced proce-dure. Where their number is equal to the number

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d� � �� � ������!���� ��$�� ���� ������������ � ��� ��� �� ��)������!��“����� ��� ����� �����” � ����� ���"���-� �����, ���� ���� �� ����� �� �� ��� �� ������� �� ������%������ ��$�� ��.

���!� ���� � �� �� � ��� ���� ��$�-�%��� �� � ����� �� ������%���� ��$�� �!�� `Z] � ���� ���"������ �� ����%� ������ ��� ��.

]������� � �������� �� ��. 48, ��. 2 �� ����-�� � ��������������!�� � ��. 2, ��. 1, �. 6 ��W����� t 13 �� 22 ������ 2003 �., ��������-����������� �� ����� �� � �#�� � ����-� �� ������%���� ��$�� �!, ������ �� � ���- � �������� ��%� � ���������������������"� � �� ������"�� ������%"��. d�� �� � ��� � ���"������ ��)������! ����-�%��� ����� �� ���� ������%���� ��$�� �-��� �� ���, ������� �^.

������� � ��������������!�� � ���� ���-�"�� ������������, �� ��������� �� ���-�� ����� �� �� ������ ��� ������ ��� �%��-�� ��$��%�.

�������� ���������� � � ����� �� ��-$�� �!�� �� ����%� ��� ���, �������� ��. 55, ��. 1 �� �^, � � ��� ����� �� ����������%� - ������������ ������. �� �� � )���-�� � ����� �� �������� � ��'����!, � ��-�� %����� ���������� � ������ �� �^.

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of operators which may be licensed for therespective free limited resources or less, the indi-vidual license is issued without any competitivebidding procedure or public tender.

At the same time, Art. 4, para 1 of the Regulationon the procedural rules and technical parametersfor the operation of telecommunications net-works from the fixed radio service states explicit-ly that the procedure for the issuance of a point-to-multipoint license is competitive bidding orpublic tender.

Given the interest expressed and also the oppor-tunity for the issuance of only two licenses due tothe limits frequency resources, the CRC has todecide whether to announce competitive biddingprocedure or public tender for the granting of thelimited resources.

Furthermore, in the choice of competitive biddingprocedure or public tender, the provisions of Art.2, para 1, subpara 2 of the Competition ProtectionAct should be taken into consideration, in accor-dance with which its provisions apply to cases,where the executive authorities explicitly orimplicitly prevent, restrict or violate or may pre-vent, restrict or violate competition in the coun-try.

The second major issue related to the granting offree radio frequency spectrum.

The CRC announcement on the intentions to issuetwo individual licenses indicates the availabilityof additional free resources, which will not begranted due to pending litigation.

In accordance with the objectives and principlesunderlying the Telecommunications Act and theCRC Principles for the management and alloca-tion of the radio frequency spectrum for civilianneeds (“the Principles”), the regulatory body is incharge of the development of the telecommunica-tions market, the creation of conditions for equaltreatment of operators and the promotion of com-petition among them. At the same time, the CRC

W� -����������� � ��'����� � �� ��� ���! �� ����������� ��!����� ��$��%�. d��%�� , �� ��!� �� � ��-����� ��� ��� ����! �� ���������, ����� ����� �� ����� ��-$�� ���� � ��������! ������� ����������%�, ������%������ ��$�� �! �� � ����� ����%� ��� ���.

]��������� ��. 4, ��. 1 �� W������� � ��-����!�� �� ��$��%���� ����� � ��)��-������� ������� � ����� �� ����������-��������� ��"� �� ������"���� �����-�%"�� � ���� ����"��, �� ��$��%��� �����%� ��� ��� �� � ����� �� ��$�� �! �“����� ��� ����� �����”.

`��� �� ��� ����� ��!���!� ������, ������ ����� � � ��"������ �� ����� � ����-�� ���� �� ��$�� �� ����� ���������!�������� ��%�, �� �%�� �����, `Z] ������� ��� �#���� ���� �� ��!� ����%������ ��"�� ��$��%� � �������!�� �� ��-�������! ��%�.

]���������, ��� ���� � ���� ����%������ ��"�� ��$��%�, ����� �� �� ��������� � � �������� �� ��. 2, ��. 1, �. 2 �������� � ����� �� ����%��$�!��, ������������� � �������� �% �� �������, ������ �-������ �� � ������������ ���� � ���� ����������� �������!��, ���������, ��-%#��� ��� ����� �� �������!�, �����-��� ��� ��%#�� ����%��$�!�� �������.

d���!� ������ ���� � �� �� � �������-!���� �� ������� ������������ ������.

d �%����%����� ��������� � ��!!��� ���������� � � ����� �� �� �����%������$�� ��, `Z] ������ ��������� �� �����-������� ������� ��%�, �� �� �!�� �� ������������� ����� ��������� �� ��!����$��%�.

]������� $����� � ���$����� ���"��� �^,� � �������� �� ������� �� `Z] ���$�-�� � %������� � � ��������� �� ����-

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is responsible for the efficient use of the radio fre-quency spectrum and the development of newcommunications technologies, services and appli-cations based on the use of the radio frequencyspectrum.

Any retention of free radio frequency spectrumwhich has not been granted to another telecom-munications operator, would represent a viola-tion of the objectives and principles laid down inthe Telecommunications Act and the Principles.

On the other hand, the National Plan for the allo-cation of the radio frequency spectrum into radiofrequencies and radio frequency bands for civil-ian needs, for the needs of the national securityand defence and for joint use as adopted by theCouncil of Ministers indicates the specific radiofrequency bands to provide telecommunicationsthrough various radio services.

Pursuant to the provisions of Art. 28, para 1, sub-para 1, item "c" and Art. 164 of the Telecom-munications Act, the CRC provides specific radiofrequencies and radio frequency bands for use totelecommunications operators licensed under theTelecommunications Act. Hence when theyexpress their interest, applicants for an individuallicense may not indicate specific frequencyresources as they are limited by the allocated fre-quency bands. Besides, the act of serving anapplication does not imply that a specific fre-quency spectrum is reserved and the Commissionis not obligated to provide it in all cases.

Before it makes a decision on the issuance of anindividual license, the CRC has to check theavailability of free frequency resources and, pur-suant to Art. 57, para 1, subpara 1 of the Telecom-munications Act, the CRC has to refuse an indi-vidual license, where no free resources are avail-able.

For these reasons, the pending litigation is noobstacle to providing the free frequency resourcesto operators willing to use them.

��������! ������ � ��"������ �%"��("���$�����"), ��%������ �����! � � -���� �� �����������������! �� �, �� ���-�� �� %����! � ������������� �� ������-��� � ��������� �� ����%��$�!�� ��"�%�!). ]��������� `Z] �����! � �&����-���� � ��� ��� �� ������������! ������ �� ������ �� ��� ����������� ��)�������,%��%�� � ����"���!, �� ���� �� � ��� �-���� �� ������������ ������.

d�!�� ���"��� �� ������� ������������������, �� �� �� � ��������� ��� �� �%������������������ ������, �� �������!-��� ��%#���� �� $����� � ���$�����, �-��"��� �^ � ���$�����.

�� �%�� �����, W�$�������!� ���� �� ��������� �� ������������! ������ ������������� � ������������ ����� ���"������ �%"��, � �%"���� ����$��������� ���%���� � ��������, ����� � � �������� ��� ��� ��"�% �!), ���� ��\��������� ����, ������! ���������������������� �����, ����� �� �������!����������������! �� � ������� ����-��%"��.

]������� � �������� �� ��. 28, ��. 1 �. 1, �.“” � ��. 164 �� �^, `Z] �������! � ��� �-�� ���������� ����������� � ����������-�� ����� �� ������������������� �������,��$�� ���� �� ��� �� �^. ]���������� �� �!!��� �� ������ ����������� � � ������� ������%���� ��$�� �! �� ����� �� �����-�� �������� �������� ��%�, � �� �������-�� �� � ���������� ���������� �����. ��-�� ��� ��������� �� �!����� �� � ������ ����� �� �������� �������� ������,���� ��� � ������!�� ��� ����"���������% �������!��.

���� ��� ���!���� � � ����� �� �����-�%���� ��$�� �! `Z] ���!� ��������� ��������� �������� ��%� � �������� ��. 57, ��.1, �. 1 �� �^ � �#���� ���� � � �������, ��-���� �� � ����$� ����.

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There may arise further questions in the subse-quent use of individual licenses that have alreadybeen issued. They refer primarily to the ways ofestablishing the network, the interconnectivitywith the existing telecommunications networks,the provision of leased lines, the joint use ofpremises and equipment, and the specific orunbundled access to subscription lines.

Notwithstanding the multitude of outstandingtechnical and legal issues and lack of clarity inrelation to the point-to-multipoint technology, itis a step forward in the development of telecom-munications networks from a stationary radioservice. At the same time, the issuance of severalindividual licenses will bring about opportunitiesfor the development of effective competition inthis telecommunications sector which is able toprovide multiple services to both end users andother telecommunications operators.

In this context, one can conclude that the CRCactions are a conscious step towards the introduc-tion of modern telecommunication technologiesin Bulgaria, which will inevitably promote theprestige of this administrative authority as aneffective market regulator.

]����������, ��!���� ������� ��$��%��� �������!� ����� � �������!�� ���������! �������� ��%� �� ������� "���-��� �� �� � ��� ��.

]��������� ����� ����� �� � ����� ��� ����������� � ��� ��� �� � ����������� ������%���� ��$�� ��, ���� �� ���� ��� ������� c �������� � � ��"������ ��"���, �� ����� �� ��� ��� ������-%����� ����������������� ��"�, �����-��!���� �� ����� ��� ����, ���������� � -��� ��� �� ��������! � ����"���!, ������ ���$�&����! ��� ����� �� ������ �� ���-������� ����!.

W� ������ �� ������� ����, ��)������� �'�������� ����� � ��!����� ������� ��)-������!�� “����� ��� ����� �����”, �! ����-���!� ����� ����� � ������ �� ����-��������������� ��"� �� ������"�� �-�����%"��. d ������ ��� � ������� �� �!-����� ������%���� ��$�� �� �� ����� ��� ��"���� � � ���� �� �&������ ����%-��$�! �� � �������%����$����� �����,�� �� ��� � ��"������ �� �������� ���-"���� %��%��, ����� �� �� ���� ��������-��, ���� � �� ���������� ������������������������.

d� � �� � ���� ��"�����, ��"� �� �� ��"��� �� ���!�� �� `Z] �������!�� ������������� ������, �������� ��� ��"�������� ������ �������%����$����� ��)������� Y�����!, ����� �����%��� �� ���� ��� � � � ������ �������� �� �� � ����-��������� ����, ���� �&������ ��%������ �� ��.

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Amendments to the Labour Code — NewObligations of EmployersMilena Gaidarska

A number of amendments tothe Labour Code effective asfrom 1 August 2004 have beenadopted in order to adjust thelegislation to the Directives ofthe European Union and toguarantee social stability in the

case of changed ownership of enterprises.

The changes can be assessed as socially orientedas a whole because they provide protection to theeconomically more vulnerable party to the labourrelationship through the introduction of newobligations of employers.

1. In the cases of mass redundancies, the employ-er has the obligation not only to inform theemployees in a formal manner but also to holdpreliminary consultations with them, while mak-ing best efforts to achieve an agreement in orderto avoid and restrict the mass redundancies andto mitigate their effect. Consultations have to startat least 45 days prior to the event of mass redun-dancies. Since this is an imperative provision, thefailure to conduct preliminary consultationsmight lead to unlawfulness of the redundanciesthemselves.

A positive feature is the specific definition of theterm “mass redundancies”, where the law-makerhas used strictly objective criteria, i.e. number ofpeople laid off, average number of employees,and time-frame of the redundancies. For instance,if the enterprise has 50 employees on the averageand the employer intends to make redundantmore than 10 employees within a month due toreduced volume of work of reduction of staffinglevels, this would qualify as a case of mass redun-dancies and preliminary consultations will haveto be held.

The consultations in the case of mass redundan-cies should be conducted in the manner provided

H�2������ � I�6�� � ���6 — ���� �6�1=���� � � ���6��1�I����� J�7������

] $�� ���"������ ���������� � ������-��� �� ���� ���! ��' , ����� � � ����� ��-������� �� ��$������� ���������� �� ��-�!�� ������������ �)% �����!��!, `������ �� �%�� �!)� ����� ���$� � ����-��!, ���� �� 1 ��%�� 2004 �.

`��� $!�� �������� ����� �� ����� �$��������� ��$����� ���������, ������ ������� ������������ ��-������� ����� �� �%��-��� �������#���� ��������� ���!����� ��� ����"���! �� �������������.

1. d ��%����� �� ����� %������� �������-���!� ��� � ���"�� �� ���� �� ��&������%"������� ����� &������, �� � �� ���-�� ���������� ����%���$�� � �!), ���� ��-��"� ����)������� %����! � ��������� ������ %�����, � ����� � �!������ � �����-������� �� ������� %������� � ��������-�� �� ���������!�� �� ����. W���)����� �����%���$���� �� ������� �� ��-����� �� 45��� ���� � �#����� �� �������%�������. *� ���� �� ����� � ���� �� ��-������� )�����, ����� ����� �� ��$�-�%��� �� ���������� ����%���$�� ������o �� ����� �� �� �������� �� � �#�-���� %������!.

`��� ����"������ ��"� �� ���� �$����� ���-������� ��&������ �� ���!����� “�����%�������”, � ����� ����������!� � � ��� -�� ����� �������� ������ — �� �� %��-������ ��$�, �� �� �������������! ������ ����� �� � �#��� �� %������!��. *���������, ��� �����!��� ��� ��������-����� ������� �� 50 �%#�, ����������!������� �� %���� ������ �� ���� ����$,����� �����!��� �� ����� �� ������� �����������! ����, ����� �� 10 ��%"�����,�� ���� ����$� )����� � �� ����� %�������� ����)������� �� ���"���� �� �����-����� ����%���$��.

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for in the collective labour contract. However, theprevious legislation did not contain any provi-sions on how planned mass redundancies wouldbe notified, where no collective labour contractexisted in the enterprise. In order to fill in thatgap, at least to a certain extent, the new wordingof the law reads that the consultations will beheld with representatives of the employees elect-ed at a general meeting of the employees at theenterprise.

2. Another new obligation of the employer is toprovide the employees with information in writ-ing as to the existing vacancies at all levels,including vacant executive positions requiringhigher qualifications.

3. The requirement to have served at least eightmonths in order to become eligible for annualpaid leave has been removed. Still, in order toactually exercise this right, the employee has toserve at least eight months at his or her first job.Where the employment is terminated earlier thanthe eight-month length of service, the employee isentitled to compensation for unused annual paidleave.

The latest amendments to the Labour Code haveintroduced more detailed rules on a number ofissues, especially mass redundancies. In order toavoid the risk of having the redundanciesannounced unlawful by court, employers willhave to take into consideration the new require-ments when the plan and carry out mass redun-dancies.

With a view to ensuring better matching of theexisting labour law with the needs of employersand employees in the context of a quite dynamiceconomic development, the law-maker could con-template, de lege ferenda, some further changesrelated to the expansion of the scope of employ-ment contracts with fixed term and to the intro-duction of additional and more flexible groundsfor termination of contracts in the cases of inter-nal re-organisation, economic need and other cir-cumstances.

`���%���$���� �� � �#��� �� �����%������� ����� �� �� � �#�� �� ���,������� ���������! �%�� �����. d������#���� %����, �����, �� ��#� �������-����� ��� ����� �� ����� %����!����� �������!�� ����� %������! ��%�����, ��-���� �����!����� �!�� �� ���� �������-�� �%�� �����. �� �� �� ������� �� ��� ���� ���� ���!����, ����� ����$�! �� ����� �� ����"�� ����%���$���� �� �� ��-�"��� � ����������� �� ������$� � ��%-"�����, � ���� �� ������ ������� �� �-�����$��� � ��%"������� �����!�����.

2. W�� �� ��! )����� � � ����"������ ������������! �� �������! ������� ��&�-��$�! �� ��%"������� � ��������� ������������� ����� � ���"����� �� ����� ��� �����!����� ��� ����� � ������������"�����, ����� � ����� ��-����� ����-&���$�!.

3. ������� � �������� � �����%� 8 ����$��%�� ���" � � ������ �� ��� �� ����������#�� ���%��. �� �� ���� ����� &���������%��"���� ��� ���, ��%"����!� �� ���-������ �� ����� � ��� ��� ����� �� ��-����� �� -����� 8 ����$� �%�� ���". d ��%-�� , �� �%����� �������#���� ���� ���-����� ���� ��������� �� 8-������� �%-�� ���", �� ��%"����! ����� �� ���� � ���-���� ��� ������� � ��� ��� �� ������ ����-#�� ���%��.

] ���������� � ������! `* �� ���������� ��-������� ���������$�! �� ���$� ����� ��� -��� �� �� �, �� �� � ������� %����-��!. �� �� �� � ������ ������� �� ��!!��� ��������� ��� �� � �#��� %������! � �� �-�����, ����� � ������! �� �!�� �� ����� ����� ����� �� ������������� �� �����-����� � � �#����� �� ����� %������!.

�� �� ��"� ���������$�!�� �� �%����� ��-��#���! �� ������ �� �%"���� �� �������-���� � ������$� %����!�� �� ������������������ � ���� �� ���������, �� ����-

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1. The Minister of Regional Development andPublic Works issued Regulation No. 3 of 21 July2004 on the main aspects of the design of buildingstructures and the impacts on them, which waspublished in The State Gazette, No. 98/2004. TheRegulation specifies the main aspects of thedesign of building structures and foundationsand the ground base of construction works(buildings and equipment), as well as the meth-ods of identifying the impacts on them. Structuresof different materials and structures for suchfacilities as nuclear and other power plants,hydrotechnical and transport facilities, silos andreservoirs, high stacks, masts, towers and otherare to be designed and the impact on them is to beidentified in accordance with the Regulation andthe requirements of the relevant special legisla-tion. The Regulation is applicable to the design ofnew construction works, as w ell as to reconstruc-tion, overhaul, repair and refurbishing or thechange of purpose of the respective facility.

2. The Regulation on the proper and safe operationand maintenance of irrigation infrastructure facili-ties was published in The State Gazette, No. 97/2004. The Regulation specifies the require-ments to the proper and safe operation and main-tenance of irrigation infrastructure facilities, as wellas the rights, obligations and responsibilities of irri-gation companies established under the IrrigationAssociations Act, which have acquired the right touse or title to irrigation infrastructure facilities.

3. Regulation No. 8 of 19 October 2004 on theadditional rules for the tariff classification of

��� ����������!� de lege ferenda �� ������� � � #�!��� ����"���� ���� �� �����!�%�� ����� � � ��"���� �� �������-����� ��-����� �������! � �����!���-�� �� �%���! ����� ��%����� �� ���#-�� ������ �$��, ������������ ����)���-���� � �%�� �����!������.

1. d ^d, �. 98/2004 �. �� �%����%��� W����� t 3�� 21.07.2004 �., � ������ �� �������� �� ����-������� � ���� � �����%��� �����, � ����-���� ����"���! � ��������� �� �����%�$��-�� �� ����"��� � � � �� ���!�� �)% �!). ]�������� �� ������!� �������� ����"���! ���������� �� ����������� �����%�$�� � ��&%���������� � ������ ����� �� ����"���(������� � ����"���!��), ����� � �������� �������!�� �� � �� ���!�� �)% �!). ������-����� �� �����%�$�� �� � ����� �������� ��� �����%�$��, ����� ������ � ����"�, ���������� � �%�� $������, )�����)������� ���������� ����"���!, ���� � � � ����,����� ������, �����, �%�� � �., ����� � �����-�!���� �� � �� ���!�� �)% �!) �� � �#���� %����!�� � �� ��� �� �� � ������ � ��� ������!�� �� ���$�&������ �������� ����-�. W������� �� ������ � ��������� �� ����-�%�$�� �� ��� ����"�, ����� � �� ������-%�$��, ��%��� ���, ������ ������ �����!�� �� ����� ��������� �� ����"���.

2. d ^d, �. 97/2004 �� �������� ��������� ������� � �� ������ ���������$�! � �����"����� ����"���!�� �� )��������������� ��&-���%��%�. ��������� %�"�� � ������!�� � �������� � �� ������ ���������$�! � ���-��"��� �� ����"���!�� �� )�����������-���� ��&���%��%�, � ���� ���� �����, ����-"���!�� � ������������ �� ��%"���! � ����!-���, ��������� �� ������ � ��%"���! � ��-��!��� � �������� ��� �� ��� ��� ��� ��-� �� ���������� �)% ����"���! �� )�����-���������� ��&���%��%�.

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BRIEFLY çÄäêÄíäé

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goods issued by the Minister of Finance pursuantto Art. 27, para 2 of the Customs Act was pub-lished in The State Gazette, No. 96/2004. TheRegulation specifies the additional rules for thetariff classification of goods in accordance withthe explanatory notes to the Harmonized Systemfor Description and Coding of Goods, theexplanatory notes to the CombinedNomenclature applicable in the EU MemberStates, the opinions on the classification of goodsadopted by the Committee for the HarmonizedSystem of the World Customs Organisation andthe decisions on the classification of goods applic-able to the EU Member States.

4. Instruction No. 1 of 12 October 2004 by theMinister of the Environment and Water and theMinister of Agriculture and Forests on the identi-fication of waters in water bodies or parts thereoffor fish habitation and the coastal areas for raisingshell organisms was published in The StateGazette, No. 96/2004. The Instruction introducesa procedure for the identification of water for fishhabitation, including waters requiring protectionor improvement in connection with the supportof the life of fish, as well as those for raising shellorganisms, including the areas requiring protec-tion of improvement in connection with the sup-port of the life of crustaceous organisms and mol-lusks.

5. Regulation No. 9 of 28 September 2004 on theprocedure and forms for providing informationon waste disposal activities and for keeping thepublic register of permits, registration documentsand closed down facilities and activities was pub-lished in The State Gazette, No. 95/2004. TheRegulation was issued by the Minister of theEnvironment and Water, the Minister of RegionalDevelopment and Public Works and the Ministerof Health in order to ensure the provision of com-plete and reliable information on waste disposalactivities by specifying the procedure applicableto the documentation and the disclosure of data,as well as to the keeping of the public registerunder Art. 26, para 1 of the Waste ManagementAct.

3. d ^d, �. 96/2004 ��#� �%����%��� W����� t 8�� 19.10.2004 �. � �������������� ����� � ��-�&�� �������� �� �����, � ������ �� ���������� &�������� �� �������� ��. 27, ��. 2 �� ������ ������$���. ] �� � ������ �� ������!� �������-����� ����� � ���&�� �������� �� ������� ���������� � ��!���������� ����"�� ��� w�-���� ������ ������� � �������� � ������� ���������, ��!���������� ����"�� ��� `�������-���� ���������%�, �������� ������� - �������� ���� ���! ��' , �����!�� � �������� ���������, ����� �� `������� �� )����� ������������� �� ]������� ���������� ����� �$�! ��#���!�� � �������� �� �������, �������� ������� - ������ �� ���� ���! ��' .

4. d ^d, �. 96 �� �%����%��� � �������� �����-��� �� �������� ���� � ����e � �������� �� ���������� � ����� �� _���%�$�! t 1 ��12.10.2004 �. � ������&�$���� �� ����� � ��-���� ������ ��� ����� �� �!) � �������� �� ���� � ����� � �� ��"�� ����� ��� � � �"-���� �� ��%���� ����� ��. ] �� � ����%�$�!�� ��"�� ��$��%� �� ������&�$������ ������� � �������� �� ���, ��'������� �� �,��������� ���� � ������ ��� ��� ��� �����-!���, � � �� � �����"����� �� "���� �������, ����� � � � �"���� �� ��%���� ���-�� ��, ��'������� �� �, ��������� ���� � ���-��� ��� ��� ��� �����!���, � � �� � ���-��"����� �� "���� �� ������ �� � ��������.

5. d ^d, �. 95/2004 �. ��#� �%����%��� W�����t 9 �� 28.09.2004 �. � ��� � ��� $���, �� ������� �������! ��&���$�! � �� ������� �� ����-��$���, ����� � ��� � ����� �� �%������! �-����� �� � �������� � �#���!, ������$���-���� ���%����� � �� ������� ������ � �� ���-��. W������� � � ������ �� �������� �� ����-���� ���� � �����, �������� �� ������������ ���� � �����%��� ����� � �������� �� ������ ����� � $��� ���%������� �� ����� ��������� ��&���$�! � �� ������� �� ������-$��� �� ������!�� �� ��� � ���%�������� ��������!�� �� �������, ����� � ��� � ������� �%������! ������ �� ��. 26, ��. 1 ������ �%������� �� ������$���.

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Is it possible for a company registering underthe VAT Act to deduct the VAT charged prior tothe VAT registration date with regard to theassets and materials purchased or acquired inanother way for the repair and refurbishing of abuilding owned by the company?

In accordance with the VAT Act, a person regis-tered under the law may deduct as a tax credit thetax charged on goods acquired in taxable suppliesas a non-registered person provided all condi-tions laid down in the VAT Act are met cumula-tively, including the condition to have the goodsavailable at the time of the registration. Materialsand the building are goods within the meaning ofthe VAT Act. Since the building is owned by thecompany, the input materials used for its repairand refurbishing increase its book value. In thisparticular case, the materials have been acquiredas a result of the supply of goods and put into anavailable asset (good), representing an integralpart thereof at the time of the VAT registration inaccordance with the accounting procedure set outin Art. 12 NAS 4. This gives grounds to claim thatthe materials put into the building are available asof the time of the VAT registration. If all require-ments of the VAT Act are met, including therequirement for the owner of the building to havetax invoice(s) for the acquisition of the materials,the owner is entitled to use the tax charged on theacquisition of the materials in a taxable supplyprior to the VAT registration as a tax credit.

What is the way of obtaining information aboutthe social security and health insurance contri-butions paid by an employer or a self-employedperson?

The National Social Security Institute and anysocial security scheme have to send informationto each insured person about the contributionspaid to the permanent address of the person onan annual basis. Besides, each person subject tosocial security after 1997 is entitled to request theNational Social Security Institute to send him orher a report in writing on his or her social securi-ty status.

3�=� 1� ��� ��8������� � 6��=����� ���KKF �� 6 �����6�� ����1���� 2� 6�� ���-6� 6�� � ��8�������� 2� �� �KKF �� ����->���� � �������� �1� ���6� ��� �� 6��8 �-��� ���� � 2����1�, ����1���� � ��2���� �� ����� � 6��=������� �8�6 ?

]������� �^^] ��������� �� ����� ��$� ��"��� �������� ���� ������� ����� ���������! �%����� � �������� �� ���� ����� �� ���������������� ���� ����������� ��$� �� �����-����� ������� �� ����� %����!, ����������-�� �^^], ��� ����� ������� �� �� ������� ��������� �� ������$�!. �� ������� �� �^^] ����-������ � ������� �� �����. ]��� ���� ������� ����������� �� �%"������, ��"����� ��! ��-������ %������� ���������� ��� ����. d ��%-��! ���������� �� �������� �� ������� ��� ���-�� � �� ��"��� ������� ���� (�����), �� �����������!�� ���������� ���� �� ���� ��� �������� ������$�! �� �^^], �������� ��� � ������-��, ������� ��.12 �� W]] 4. *�� ��� �����-��� �� �� �����, �� ����������, ��������� �������, �� ������� ��� ������ �� ������$�! ���^^]. �� %�����, �� �� ��� ��� ����� � ����-��! �� �^^], �.�. ����������� �� ������� ������"�� � ����������� �� ���������� ��-�����(�) &���%�(�), ����!� ��� ��� �� ��� ����� ������� ����� ������, �� �� �% � ���������� ���� ��������� �� ���������� �� �������-�� ������� ���� ������$�!�� �� �^^].

I �1�6� 6 �� ��1��� �����2��� � �����-���� 6�1=�2� ���8�����1�� ����� �� � ���-6��1� �1� �� �2����8������ �� 1���?

W�$�������!� ����%������ ������%�, ����� ��!�� o���%������ �%"����, ����� �!�� ����-�� �� � ����� �� �����!���! ���� �� �!�� ���-�%!��� �� ��$� ������� ������� �������������%������ �����. ]��� ����, �!�� �����"�-�� �� ����%!��� ���� 1997 ������ ��$� ��"� �������� ������� ������� �� W�_ ������� ��!����%������ ����%�.

]������� `������ � ��$����� ����%!��� ��$�-��, ����"���� ��������� �� ����%�����, ��

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QUESTIONS AND ANSWERS Çöèêéëà à éíÉéÇéêà

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In accordance with the Social Security Code, per-sons acting in the capacity of payers of socialsecurity contributions have the obligation, uponthe request of the insured person or an authorisedrepresentative of the insured person, to issue therelevant documents on the length of service andincome for social security purposes free of chargewithin 14 days.

The NSSI web-site contains details also on thecurrent health insurance status at the followingaddress:http://healthinsurance.nssi.bg/report_healthhtm.asp

���"�� �� �������� �� ����� �� ����%�����$� ��� �����"�� %���������� ���� ������-���� �� � ����� �� ������ 14-����� ��� ����-)������� ���%����� � ������! ����%���������" � ����%������ ��)��.

d �� �� �� W�_ ��"� �� ���� ������� � ��&�-��$�! � ���%����! ����%� �� ������ ����%!-��� �� ����:http://healthinsurance.nssi.bg/report_healthhtm.asp

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QUESTIONS AND ANSWERS Çöèêéëà à éíÉéÇéêà

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Lega InterConsult (LIC) – Penkov, Markov & Partners was established in 1990.We provide comprehensive legal service and advice to Bulgarian and foreign companies

in all major spheres of law related to the economy.

The team work ensures continuous commitment, high quality and effectiveness of the legal service provided in order to find together with the client the best innovative and practical solution within the existing economic environment.

LIC – Penkov, Markov & Partners through its offices in Sofia, Bourgas, Rousse, Lovech, Dobrich, Pleven, Targovishte, Varna,Stara Zagora and Vratza covers the whole country.

LIC – Penkov, Markov & Partners is Member of Lex Mundi, the World’s Leading Association of Independent Law Firms and Associated Member of Eurojuris Germany, and it also has cooperation partners:

Austria - Lansky, Ganzger & Partner, Germany - Niebaum, Kohler, Punge, So..der

FOR CONTACTS

Head office: Iztok Dstr., Bl. 22, Entr.A, 1113 Sofia, BulgariaTelephone: (+359 2) 971 39 35 Fax: (+359 2) 971 11 91 e-mail: [email protected]

www.licpenkov-markov.com

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