2015 Annual Review of Labour Relations and Social Dialogue Bulgaria PLAMEN DIMITROV January 2016  Enhanced fiscal discipline, inadequate economic growth, and slow recovery of the labour market are among the leading factors that have worsened the environment for social dialogue and industrial relations development in Bulgaria.  А trend towards decentralisation of collective bargaining has been observed, as well as abandoning the practice of extending branch collective agreements to all companies in the given sector/branch. All these developments are gradually diminishing unions’ collective bargaining power and as a result the processes of social stratification and income inequalities have deepened.  The minimum wage remains one of the most important tools to influence income policy, but increasing it is facing more and more intensive opposition from employers' organisations.  For the trade unions the issues related to improving the sectoral and branch social dialogue, the establishment of a common procedural framework for conducting collective bargaining at various levels and the provision of necessary information to the negotiating teams are of strategic importance.  A new income policy with a catching-up effect can be achieved not just on the basis of economic growth but also through increasing the role of the state in the distribution and redistribution of GDP. This means that the fight against poverty and social exclusion goes through both more and quality employment and also through more equitable taxation and improved social and solidarity systems.  The social effects of the new economic governance and the European Semester are apparent. Greater activity and involvement of trade unions at the national level in the elaboration and discussion of key documents is needed.