Bulgarians protest government austerity policies

SOFIA, Bulgaria (AP) — Thousands rallied Wednesday in the Bulgarian capital of Sofia to protest government-proposed austerity measures that include raising the retirement age by one year.

Union leaders said more than 20,000 people protested in front of Parliament as lawmakers vote on next year's state budget.

The center-right government, however, said it was determined to move ahead with the planned reforms, arguing they will help Bulgaria weather the fallout from Europe's debt crisis.

Bulgaria survived the 2008 global financial crisis without seeking bailout loans thanks to its tight fiscal discipline, which wins praise abroad but does little to improve living standards at home.

The country of 7.3 million people is the European Union's poorest member, with an average monthly salary of €340 ($450) and average monthly pension of €150 ($200).

Bulgaria's government is considering raising the retirement age by one year beginning in 2012 to reduce the rising costs of its pension system, caused by an aging population and an economic slowdown. The current retirement age is 63 for men and 60 for women.

Retirement age in Bulgaria is among the lowest in Europe, but so is the country's life expectancy.

The protests came after government made a U-turn on a previous pledge not to raise the retirement age until 2021.Protesters demanded the government stick to its promises and urged Finance Minister Simeon Dyankov to resign.

The opposition, which supports the protests, urged the government to look for ways to boost revenue, such as stimulating the economy and cracking down on smuggling.

Dyankov defended the spending cuts in next year's budget, saying financial turmoil in neighboring Greece and the overall eurozone require buffers to the budget.

Bulgaria, which joined the European Union in 2007, aims to narrow its budget deficit to 1.35 percent of GDP in 2012 from 3.9 percent in 2010. Its debt is just 18 percent of GDP.

Wednesday's rally comes on top of an ongoing nationwide strike of railway workers and protests by farmers and police officers. Grain producers demanding higher state subsidies blocked traffic on several highways and some border crossings with Romania and Turkey.