Bulgaria

Economy and Energy Minister Petar Dimitrov said higher state wages would boost taxes and inflation, threatening the country’s financial stability and driving away investors. A month-long teachers’ strike demanding their salaries be doubled raised economists’ concerns the government will be unable to meet their demands and maintain financial stability. The Socialist-led coalition faces a no-confidence vote next week over the strike. Bulgaria, the EU’s poorest state by per-capita income, is struggling to boost pay and investment and stem price growth enough to qualify for euro adoption. (Bloomberg)

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