The loss of greenhouse gas emission allowances that will result from an ongoing effort to amend the relevant EU directive may dampen the influx of direct foreign investment to Bulgaria, the Bulgarian Industrial Association warned on Wednesday.
Politimi Paunova, executive director of the Bulgarian association of the metallurgical industry, said Austria's voest alpine to back-track on likely plans for a new plant here because the allowance cuts will spike production costs.
The Austrian company did not verify this Information and said it was still examining the business environment in Bulgaria.
Voest alpine is eyeing opportunities for the construction of a 5 bln euro plant in Bulgaria, Romania, Turkey or the Ukraine.
Anton Petrov, the regional manager of Viohalco, the Greek owner of Bulgarian steel maker Stomana industry, said the company too is considering shifting investment to another location if Bulgaria's emission allowances are cut.
Bulgaria is facing an annual loss of 300 mln euro in 2013-2020 if the EU directive is amended, said BIA chairman Bozhidar Danev.
The proposed scheme will be toughest on the latest EU entrants because if the lag in their economic development relative to the older member states.
Bulgaria has therefore joined an effort championed by Hungary to enforce a one-size-fits-all target of 18%.
 | SeeNews SeeNews is a business and financial news and information provider which brings its visitors and customers access to detailed coverage on the fast-growing companies, economies and markets of ten Southeast European nations. |
Search for: company |
Search for: industry |
Search for: Bulgaria |
Search for: Romania |
