The Sofia Echo
More Romanian companies are shifting south across the Danube to Bulgaria in an effort to shield themselves from the worst effects of the financial crunch in their own country and find a more rewarding business climate elsewhere, as reported by the Standart daily.
This trend has already been observed to the south as hard hit Greek companies try to find better business conditions. The Greek newspaper Vima reported that Greek businesses are attracted to Bulgaria because of lower operating costs. Some multinational companies like Tate&Lyle Greece, German Triumph and American Crown Cork & Seal have already started operations in Bulgaria.
According to Kamen Kolev, the Director of the Bulgarian Industrial Association, companies are attracted to the Bulgarian market because expenses, running costs and wages can be up to 40 per cent lower.
In light of the Romanian surge the northeastern city of Ruse has witnessed a dramatic increase in demand for rental property businesses. This is expected to continue throughout 2009.
According to Kamen Kolev, Greek companies and multinational companies based in Greece are likely to continue to opt for Bulgaria because the average wage in Bulgaria is up to three times lower than in Greece.