Mihály Varga urges to fight with tax evasion

Sofia Metro station (CC BY-NC-ND Serdika Station)

Bulgary is going to build metro third line in Sofia.

It wasn't Russia halted Turkish Stream project.

Public sector job cuts in Serbia.


Hungarian National Economy Minister Mihály Varga “called on European Union members to assist in a joint crackdown on value added tax evasion” – Budapest Business Journal reports. Varga states the best way to fight tax evasions is to introduce the reverse VAT – the practice that obliges the buyer of goods (not the seller) to pay tax.

The idea was revealed by Varga while visiting Czech Republic. Varga and Czech Finance Minister Andrej Babis at the joint press conference urged the leaders of EU to draft a strategy for addressing the issue as soon as possible. The Hungarian Minister reminded that approx. EUR170bn was cheated out of EU members in VAT revenue in 2013. In Hungary it was EUR1.7-2.5bn.



Bulgaria’s capital will soon have 3 lines of metro. The city mayor Yordanka Fandakova has announced that work on the project will start in the spring of 2016. “Plans for the third line, from the Zaimov park to the Krasno selo neighborhood, include new stations or connections by the park itself, next to Sofia University (a connection to Line 1), the National Palace of Culture, (where passengers will be able to switch to Line 2), Pencho Slaveykov Blvd (a prime location from which a number of hospitals are easy to reach), Bulgaria Blvd (a major thoroughfare connecting the center with the Ring Road’s southwestern section) and Krasno Selo itself” – reads Novinite.com.

The M3 Line is expected to be 16km long and will be put into service by 2018. The population of Sofia is about 1.228.282.



It was Turkey, not Russia, that halted Turkish Stream project – revealed on Saturday, December 5th president Erdogan. Turkish Stream was the business idea that Russia found after abandoning the South Stream project (of laying a pipeline from Russia to Bulgaria via the Black Sea). It was at the beginning of December 2014. The project envisioned laying a natural gas pipeline with the annual capacity of 65bn cubic meters, from Russia to Turkey across the Black Sea. In November 2015, after the Russian Sukhoi Su-24 shootdown, Russian Economic Development Minister said the Turkish Stream project falls “under the restrictive measures against Turkey”. Last week Russia informed it suspends works on Turkish Stream, calling on Ankara to confirm and strengthen its interests in the project. In the meantime Turkish president said at an international forum of innovation in Istanbul, that Moscow didn’t match his country’s expectation and that Turkey plans to find other gas supplier than Russia.

At the end of November President Erdogan paid a visit to Quatar (to secure a deal on liquefied natural gas (LNG) purchases and Prime Minister Ahmet Davutoglu visited Azerbaijan where his country is completing a joint gas project.



Serbia will lay off over 14.512 public sector workers. The move of the government will reduce the public sector workforce by 2.82 per cent from the current 514.573 employees. “Layoffs will be implemented through reorganisation of the public sector, which should happen during the next 60 days” – SEENews The Corporate Wire reports.

Later in 2016 Serbian government plans to cut another 20.000 jobs. “These people will not lose their jobs but will instead switch to a market principle model of financing”-  the administration ministry states.

The unemployment rate in Serbia is expected at 19.2 per cent at the end of the year. At the end of 2014 it was 19.7 per cent. (this is according to Serbian authorities and projections of International Monetary Fund).


What’s up in indexes?

BUX (of Budapest) dropped by 0.25 per cent on Friday, December 4th. It closed at 23629.05 index points. The previous close was 23687.65 index points. From year-end it’s up 42.05 per cent.

BET (of Bucharest Stock Exchange) lost 0.06 per cent, decreasing from 7023.14 index points Thursday to 7019.25 index points Friday. From year-end it lost 0.90 per cent.

PX (of Prague) lost 0.08 per cent, falling from 951.27 index points Thursday to 950.48 index points Friday. From year-end it’s up 0.40 per cent.

WIG20 (of Warsaw) was up 0.01 per cent increasing from 1864.37 index points Thursday to 1868.24 index points Friday. From year-end it lost 19.33 per cent.

OMXT (of Tallinn) gained 0.33 per cent, climbing from 901.31 index points Thursday, December 3rd, to 904.24 index points Friday, December 4th. From year-end it’s up 19.76 per cent.

OMXR (of Riga) lost 0.49 per cent. It fell from 586.52 index points Thursday to 583.62 index points Friday. From year-end it’s up 43.03 per cent.

OMXV (of Vilnius) grew by 0.47 per cent. On Friday December 4th the index closed at 487.77 index points. The day before it closed at 485.49 index points. From year-end it’s up 7.81 per cent.

SAX (of Bratislava) gained 0.23 per cent, climbing from 302.02 index points Thursday to 302.70 index points Friday. From year-end it’s up 36.16 per cent.

SOFIX (of Sofia) closed at 435.36 index points Friday, dropping by 0.01 per cent compared with Thursday’s close at 435.42 index points. From year-end it dropped by 16.61 per cent.

UX (of Kyiv) closed at 696.68 index points losing 2.08 per cent. The day before it closed at 711.46 index points. From year-end it dropped by 32.58 per cent.

CROBEX (of Zagreb Stock Exchange) lost 0.25 per cent on Friday, December 4th. It closed at 1673.21 index points while the day before it was 1677.37 index points. From year-end it dropped by 4.14 per cent.


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