Introduction

A little over a year ago, the Institute of Market Economics sent a letter to the newly elected Prime Minister (Stanishev). In this letter, taking into account the specific structure of state government, we suggested principles and actions in the field of economic policy that would enable the government to cope with different tasks in order to increase the well-being of society and to overcome obstacles of contemporary state governance without destroying confidence between the coalition partners.

Obviously the government has decided to do the opposite of what we suggested. The positive changes, as far as they exist, are based on a foreign pressure – from European Commission, IMF, companies with violated rights and public opinion.

During the last year we examined closely the economic policy and offered suggestions and solutions regarding different aspects of economic policy including:

1) a reduction of the tax burden
2 ) broadened economic freedom
3 ) amelioration of the effectiveness of state governance

Saving the fundamental structure of our previous letter, today we attempt to analyze what the government has done and what remains to be done in the field of economic policy as well as all kinds of specific domains with direct or indirect relations to economic policy.