Chapter 7: Here comes Russian capital

After the end of the annual budget meeting, the Bulgarian government is facing a new problem - the restructuring of state-owned enterprises!

In times of war, this state-owned enterprise system not only saved the government a lot of expenses, but also saved a lot of resources.

All of them are produced according to the plan, as much as is needed, and there is almost no waste, which is undoubtedly a very scientific management method in times of war.

But the aftermath of this has also appeared, the company that has been stopped for two and a half years has now lost its vitality, everyone has become accustomed to producing according to the plan, and has derailed from the market.

The most obvious manifestation is that in the months since the end of the war, dozens of state-owned enterprises have fallen into a state of loss because of blind production and failure to grasp the direction of the market.

Not to mention state-owned enterprises, even private enterprises have also had a similar situation, the capitalists have collapsed, but the problem of state-owned enterprises is more serious!

Everyone knows that there is a problem with the way Bulgarian state-owned enterprises operate now, but no one knows how to change this, and Ferdinand is no exception, even in later generations this is a big problem!

How to change the specifics, the situation of each enterprise is different, and not all enterprises must be reformed, at least the finances of military enterprises must continue to give them a back-up, and they are really going to be completely cut, and the people at the bottom will have a production transformation, and Ferdinand will be ready to cry!

There are still traces of this situation, and it often happens in capitalist countries, when no one wants weapons after the war, and the capitalists simply send the workers home and turn to the production of civilian products.

Defense? Does this have anything to do with them? If a company doesn't make money, there's no way to survive? You can't sell weapons, can you? Now that the world war has just ended, whose warehouse does not have a large pile of weapons in it, who are they selling to?

Therefore, Bulgaria's restructuring is destined to be impossible to achieve in one step, as long as the separation of government and enterprises is completed, enterprises can operate independently and survive.

Presiding over this restructuring is naturally the cabinet, and there are two roads in front of Konstantin, and the first one is only one word - sell!

It's simple, it's easy and straightforward, and it's a one-and-done solution! As long as these enterprises are sold, everyone will not have to worry about them, and the capitalists will naturally know what to do!

The second way is - change! Let the enterprise operate independently, and then invite professional managers, and the government will only supervise the dividends.

Konstantin handed Ferdinand a document and said: "Your Majesty, this is the plan of our Cabinet for the reform of the enterprise, please take a look at it!" ”

According to the cabinet's plan, 80 percent of Bulgaria's state-owned enterprises will be auctioned off this time, and only more than 10 large enterprises such as military enterprises, Bulgarian Railways Group, Bulgarian Agricultural Products Company, and Bulgarian National Bank will be retained.

In addition to the military industrial enterprises, the economic benefits of other enterprises are not bad, even the railway companies are also profitable, obviously this is carefully selected by the government, and they don't want the enterprises that don't make money!

This also includes the famous Bulgarian Steel Group, the Bulgarian Municipal Services Company, the Bulgarian Mining Group, etc., a bunch of giant companies that have been abandoned because they cannot make a profit!

After pondering for a moment, Ferdinand decided to sell! This is determined by the market, when Bulgaria could smash the pot and sell iron to develop these enterprises, now with the completion of Bulgaria's industrialization, the historical mission of these enterprises has been completed, and staying will only increase the burden on the government!

As for turning losses into profits, it may be possible to spend some economic money, but the Bulgarian government is not specialized in business, and the government's function is to develop the country, and it cannot put the cart before the horse!

Ferdinand thought for a moment and said, "Then prepare for the auction, the government can send invitations to buyers from all over the world to try to sell for a good price!" ”

Konstantin replied with a wry smile: "Yes! ”

Sell for a good price? How is this possible? I don't look at what time it is!

The European continent is in ruins, and the capitalists are indeed waving cheques looking for investment projects, but the current factories are worthless, machinery and equipment are the price of cabbage, and the German factories demolished by Britain and France are still looking for someone to take over?

Didn't Ferdinand also buy a lot of cheap equipment? Who doesn't want a bargain?

And the capitalists in Bulgaria have one of the biggest problems, that is, their capital strength is insufficient, this world war is a feast of capital, they are directly reduced to spectators, they have not been able to complete enough primitive accumulation, and of course there are banks!

Ferdinand secretly thought that after this auction, the royal family will have a deeper grasp of the country's economy!

As for the embezzlement of state assets? This is a good choice, but only if you have enough strength?

There is no doubt that the cabinet is going to conduct a public auction of these companies, and even if they have ideas, they must have the ability to operate them, right?

Collusion with so many competitors and joint price reduction? Just think about it, and don't look at how many vests Ferdinand has inside, it will be exposed in minutes, and then the raid will come soon!

Anyway, Bulgaria's current law is so domineering, although it is also its own crime and resistance, but the seizure of family property has always been confiscated.

After all, I can't see the money above, which one is illegal and which one is legal, and it is not clear which one, so naturally it will all be confiscated!

So now the richer the Bulgarian people are, the more cautious they are, for fear that any bastard in the family will commit a crime and lose the family business, and there is nowhere to reason.

Of course, in fact, there are not many cases of house raids, and most of them are corrupt officials, as long as ordinary people are not too dead, they will not be able to raid their homes!

……

In fact, the biggest loss in this division of government and enterprises was the military, and their small coffer, the Bulgarian Agricultural Company, was divested.

Don't look at this ordinary agricultural company, in fact, this humble company is still the most profitable company in Bulgaria in this era, owning a large amount of land in the country and owning a large number of real estate.

And the income of agricultural companies is also very stable, mainly including land output, real estate rent, and supporting grain processing enterprises.

This enterprise monopolizes one-third of Bulgaria's grain production, one-half of grain processing, and 80 percent of Bulgaria's grain import and export trade.

They can create an output value of nearly 3 billion leva every year and hand over nearly 400 million leva in profits, which is a well-deserved boss among all state-owned enterprises!

The birth of this freak began with the raiding of houses in the time of Stambolov, and from that time on, the land confiscated by the Bulgarian government was handed over to this company.

In the later period, except for part of the land obtained through the war, the rest fell into the hands of this company, and finally a behemoth appeared like a snowball.

It has always been firmly grasped by the military, and taking the opportunity of this restructuring, Ferdinand also deducted it in one go.

As compensation, the military also received the right to cultivate farms in the colonies, and from now on all the colonies in Bulgaria were open to the military, they could go to the land at any time, and all the proceeds went to the army, but only for agriculture and animal husbandry!

None of this is important, the key is to knock out the army's own financial resources, and further eliminate the hidden danger of the birth of warlords.

As for the future benefits that the army can obtain by reclaiming land, it has been automatically ignored by Ferdinand, and everyone knows that military spending is getting higher and higher.

The hundreds of millions of leva now and the hundreds of millions of leva in the future are not the same concept at all! The current hundreds of millions of leva are enough to feed the Bulgarian navy and air force, or hundreds of thousands of land forces, but in the future it will only be a warship or even an airplane.

The purchasing power is not the same, and the results are naturally different!

……

As soon as the measures for the restructuring of Bulgarian state-owned enterprises were announced, the media around the world were boiling, and the capitalist world regarded this as a progress in human civilization, and the Bulgarian government finally realized their mistake and wanted to return to the right track of a free economy.

Many overseas consortia are grinding their fists, ready to make a big profit. Don't get me wrong, they won't come to buy factories, these consortia are waiting for the Bulgarian government to open up the financial markets!

Apparently they thought too much, Ferdinand knew very well that they were-and-pee, and if they were allowed to come in and toss, Bulgaria would not become a copy of France?

The struggle for dominance between the real economy and the financial economy has never stopped, only the virtual economy that the capitalists have won every time for their own interests!

It also took a great deal of effort for Ferdinand to tame the Bulgarian bourgeoisie and to create a social philosophy that advocated a down-to-earth economy. How could they be ruined?

Now the Bulgarian government propaganda is: industry prospers! The virtual economy ≈ a liar, only real industry is the wealth of the country, and stocks and bonds are floating clouds!

Therefore, the disturbance of the outside world is just a joke, and ordinary people do not believe that pies will fall from the sky, and the propaganda of foreign economic experts is in vain.

In contrast, the employees of state-owned enterprises are not so calm, which is related to their jobs, after all, the government has sold the enterprises, who knows what the new owners plan.

Even if the law stipulates that you can't lay off employees casually, you can't control other people's salary cuts? As long as it is above the minimum wage, these are people's rights, and no one can ask people to continue to maintain a high salary when the company loses money!

Fortunately, the state-owned enterprises in this period are only a problem of upper management, and the workers at the bottom have not yet rotted, and the Bulgarians have always maintained the fine style of hard work, otherwise the trouble will be even greater!

Before the world war, these enterprises were self-operated, and although there were also government grants, most of them were still self-financed, and the roots had not yet had time to rot.

Otherwise, this auction would not have been opened so easily, and how could the capitalists invest indiscriminately if they are not stupid?

……

Kennedy asked, "Prime Minister, you came here in person?" ”

Konstantin smiled slightly and said, "In the end, I still don't know the bottom of my heart!" We have taken out so many companies at one time, whether we can sell them or not, I have to be concerned, right?

What do you think? How many buyers are coming now, and will they be able to eat this batch of enterprises? ”

Kennedy said calmly: "We have taken out a total of 89 companies for auction this time, with total assets of up to 5 billion leva, if it is only our domestic capitalists, it is estimated that they will really not be able to eat!"

But now it should not be a big problem, this time there are 427 capitalists who have handed over the deposit to us, of which Russian capitalists occupy a third!

As far as I know, because of the October Revolution, many of them lost a lot of industry and are now seeking new development.

However, with the current situation in Russia, it is not too peaceful in the short term, it is not suitable for further investment, they are still looking for new investment directions, and we happen to be one of their targets! ”

Capital is profit-seeking, and they can be unscrupulous for the sake of profit; But capitalists also pursue stability, and they also want a stable investment environment!

At the moment, the Russian Empire is in the midst of war, and it is clearly not suitable for investment, and they have to look overseas. And Bulgaria happens to be one of their most promising places!

First, the political situation is stable, the government is clear, and it is suitable for investment in industry;

Don't look at many capitalists, they like to engage in crooked ways and use illegal means to make profits, but those are all in their old nest, they are the head of the land, they want connections, they want to have power, they naturally like the collusion between officials and businessmen to make profits.

If they go to another country, what they are most worried about is precisely the rule of officials, after all, they will no longer be hunters after leaving the lair, but become prey, at this time they naturally hope that the government can be notarized and strict, and can protect their interests.

So, in the Russian Empire they dared to act unscrupulously for the sake of profit, but after leaving the Russian Empire, in Bulgaria they became cautious.

The previous network is no longer useful here, and they are no longer deep-rooted high-level households, but outsiders who need to be cautious.

secondly, close enough to the Russian Empire that they could watch the situation and have many acquaintances who settled here to take care of each other;

Third, it is easy to make money;

Their relationship in China is still there, and they can also use domestic channels to sell their products, and they will soon be able to take a share of the domestic market.

……

With so many advantages, it is natural for the powerful Russian capitalists to establish some industries here, and the easiest way is to buy them directly!

By buying a Bulgarian property, they will be able to integrate into the Bulgarian bourgeoisie, adding not only a source of money, but also a way back!

After listening to Kennedy's explanation, Konstantin's hanging heart suddenly relaxed, as long as Russian capital joined, today's auction would be no problem.

Don't look at the Russians' industry is not very good, and the economy is in shambles, but this does not mean that the Russian capitalists do not have money!

Especially the bankers, who had just ransacked the entire Russian Empire and now had large sums of money in their hands and were looking for new avenues for investment.

Investment banks are of course the first choice, but in reality they are not possible! Where in the world is there no snake on the ground? The financial market has long been carved up, and all that remains is only three melons and two dates.

If they dare to intervene strongly, it is estimated that the local forces will hand over to them what to do!

This is the sequelae of killing chickens and eggs, although they have made a lot of money, but their reputation is also bad, and the banks and consortia of various countries will be hostile to their rule-breaking behavior, even if everyone makes money together!

But when it comes to attacking opponents, no one will be soft, for example, if a Russian bank opens a branch in Bulgaria now, it is estimated that it will be difficult to generate a single business, and they will be hacked from head to toe!

Now it's a good choice to start with the real economy, anyway, it's all about making money, why not?

……