In view of increasing economic problems the Bulgarian leadership had started again to search for improvements in the system of planning and management in the late 1970s. Bulgarian reform efforts are all centered on the catchwords “socialist democratization” and “self-management”. The juridical basis of self-management in the economic sphere is to be formed by contracts between the State and the enterprise, and by transfer of the management and administration of socialist property to the labor collective. In the organizational structure of the economy, the enterprises are viewed as “commodity producers” and basic units while economic amalgamations (obedineniya) and the “Associations of a new type” are the higher levels. Starting in January 1988, new rules for price formation and new wholesale prices for a series of centrally set product prices are to be applied; State retail prices of basic necessities, most of them subsidized, remain unchanged for the time being.