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Europe

Bulgaria
Last reviewed: 26 August 2009

Country information

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Full Country Name: The Republic of Bulgaria
Population: 7.6 million (UN, 2007)
Capital City: Sofia
Main Ethnic groups: Bulgarian (84%), Turk (9.4%), Roma (4.7%)
Official language: Bulgarian
Religion(s): Eastern Orthodox (83.7%), Islam (13%), Roman Catholic (1.5%), Jewish (0.8%)
Currency: Lev

ECONOMY

(preliminary 2008 data)

GDP: € 28.2 bn
GDP per head: € 4475
Unemployment: 6.3%  
Exports: € 15.3 bn (Jan-Nov)
Imports: € 24.1 bn (Jan-Nov)

Major Industries: Chemicals and plastics, machine building and metal working, refined petroleum products, food processing, construction materials, ferrous and non-ferrous metals, textiles and clothing, power generation (including nuclear)

Main trade partners: Germany, Turkey, Italy, Greece, Russia, Austria

HISTORY

Early History

The Bulgarians are descended from the Slavs who migrated into the Balkan Peninsula from the 5th Century. In the 7th Century a new wave of migrants, the Bulgars (proto-Bulgarians), arrived in what would soon become Bulgaria. The first Bulgarian Kingdom was declared in 681 when the Byzantine Emperor was forced to cede Moesia (the northern half of present-day Bulgaria) to Khan Asparukh. The Bulgars were eventually assimilated into the majority Slav population leaving only their name as a legacy. Under the Bulgar Khans, Bulgaria expanded taking Central Macedonia and Albania from Constantinople.

Ottoman Rule - 1396-1878

Infighting between Bulgarian feudal lords weakened the Bulgarian Empire, which in the fourteenth century was pressed by the Serb kingdom to the West and the Ottoman empire to the South. Turnovo, the capital city, fell to the Ottomans after a 3-month siege in 1393, and Bulgaria was fully annexed in 1396.

Bulgaria remained a part of the Ottoman Empire until the Russo-Turkish War of 1877-1878. The war concluded with the Treaty of San Stefano, which created a large Bulgarian state, encompassing much of present-day Macedonia. However, the Western European powers, worried that the existence of a large pro-Russian country might destabilise the Balkans, demanded that the treaty be re-negotiated. The Treaty of Berlin provided for a smaller Bulgarian state, ruled by Prince Alexander Batenberg (1879-1886) and an autonomous region of Eastern Rumelia. Bulgaria was finally unified in 1908, and Prince Ferdinand was declared Tsar of the Bulgarians.

The early twentieth century

Bulgaria enjoyed mixed fortunes in the Balkan wars of the early twentieth century. They gained territory during the first Balkan War (1912), but the second Balkan war (1913) ended disastrously.

In summer 1915, Bulgaria entered the First World War on the side of the central powers, and signed an armistice with the Franco-British force on 29 September 1918. The peace treaty with Bulgaria was signed on 27 November 1919 at Neuilly-sur-Seine. Bulgaria lost some land, and was forced to pay reparations, but did not suffer as badly as many of the other defeated states.

Following the defeat, Tsar Ferdinand abdicated and was succeeded by his son, Tsar Boris III. Between the wars, Bulgaria was ruled by a succession of short-lived governments. Upon the outbreak of World War II, Boris III declared Bulgaria’s neutrality. However, Bulgaria came under huge pressure to join the Axis and, despite Boris’ best efforts, the Bulgarian army gradually became involved in military operations. Of particular note, though, was the Bulgarian government’s refusal to implement the Final Solution, as a result of which the majority of Jews living in Bulgaria were saved from the Holocaust.

In September 1944 Bulgaria switched sides to the allies and declared war on Germany, although not before a few confused hours where they were technically at war with every major combatant except Japan.

Communist Bulgaria

After the Second World War the Bulgarian Communist Party emerged to become the leading political force in the country. Under Soviet guidance, a purge destroyed the remnants of the old system, and a one-party system was imposed in 1947. From 1954 to 1989 Todor Zhivkov, Chairman of the State Council, dominated political life, becoming the longest serving leader of any of the Soviet bloc nations. Policies were a direct imitation of Soviet practice; industry was nationalised and agriculture collectivised. Unlike other eastern bloc nations, there were no Soviet troops in Bulgaria.

The communists attempted to modernise Bulgaria’s economy, and achieved some success with industrialisation, thanks not least to the Comecon scheme, which gave Bulgaria a captive market for transport and IT products in Eastern Europe. But by the 1980s, as elsewhere in Eastern Europe, the economy stagnated and the system began to collapse.  

Modern Bulgaria

Zhikov resigned on 10 November 1989, the day after the Berlin Wall was breached.  Although his demise had been catalysed by economic and social unrest, his departure was the consequence of a party coup rather than a general revolt. He was replaced by Petur Mladenov, who oversaw the 14th Bulgarian Communist Party (BCP) congress in February 1990, where the totalitarian system was dismantled and a market-based economy and multiparty democracy announced.

During the transition period that followed, governments were short lived and often coalitions ruled the country. Reforms were patchy. Since the early elections in 1997 caused by an economic and political crisis, governments have been able to fulfil their full 4-year term of office, but no government has yet succeeded in being re-elected. However, relative stability has allowed Bulgaria to make better progress, and the country enjoyed a period of strong economic growth. Bulgaria joined NATO in 2006 and has become a member of the European Union in 2007.

The incumbent President of Bulgaria (fifth after the collapse of the totalitatian regime) is the former leader of the Bulgarian Socialist Party Georgi Parvanov. Constitutionally, the President has little power, but Parvanov is very influential. He was re-elected President in October 2006, when he won at the second round run-off against the extremist Ataka candidate Volen Siderov. Parvanov received 76% of the vote, making him the first Bulgarian President to retain office via popular mandate since the changes of 1989. Turnout was low, with around 42% of the electorate voting in each of the rounds. The next presidential elections are scheduled for 2011.

In 2009, both European Parliament and general elections were held in Bulgaria.  In both the popularity of GERB proved to be incontestable.  As a result of the 7 June EP elections out of the 17 Bulgarian MEPs in total, GERB has 5 MEPs, the coalition for Bulgaria 4, the MRF 3, Ataka 2, the NDSV (party of former King Simeon II) 2 and the Blue Coalition 1. If the Lisbon Treaty enters into force, Bulgaria will have an 18th representative in the EP who will be from the Blue Coalition.  

The 5th July general elections resulted in a resounding victory for the main opposition party GERB, led by the Mayor of Sofia, Boyko Borissov; and a heavy defeat for the ruling 3-party coalition of the Socialists (BSP), ethnic Turkish Movement for Rights and Freedom (MRF), and the liberal NDSV. GERB won 39.7% and 116 seats, BSP 17.2% and 40 seats, MRF 14.47% and 38 seats, Ataka (ultra nationalist) 9.37% and 21 seats, Blue Coalition (centre right, EPP) 6.73% and 15 seats and Law, Order and Justice (centre right) 4.13% and 10 seats.  Without entering into a coalition but with the support of Ataka, the Blue Coalition and Law, Order and Justice, the new cabinet took office on 27 July 2009.  The NDSV was effectively obliterated and failed to get a single MP.

INTERNATIONAL RELATIONS

Bulgaria is a member of a number of international organisations, including: the Council of Europe (COE), the European Union (EU), the North Atlantic Treaty Organisation (NATO), the Organisation for Co-operation and Security in Europe (OSCE) and the World Trade Organisation (WTO).

The Bulgarian government has the following foreign policy priorities:

• Presence of Bulgaria in the core of the European politics.
• Development of the Euro-Atlantic partnerships as a guarantee for peace and global security.
• Bulgaria becoming a factor of democratic stability and development of the Balkans and the Black Sea region.
• Increasing the role of Bulgaria in the global economy.
• Supporting the development of the Bulgarian communities abroa.

See the Bulgaria Ministry of Foreign Affairs web-site for more information.

BILATERAL RELATIONS

Bulgaria and the UK enjoy a close bilateral relationship, with a number of shared interests, for example in the Atlantic relationship and the fight against organised crime and terrorism. The defence relationship is very good, and Bulgaria continues to contribute significantly to overseas military operations in support of NATO (ISAF, KFOR), EU (Op ALTHEA, Bosnia, and Chad and the Central African Republic), and Coalition Operations in Iraq, as well as UN Observer Missions world-wide.

Nearly half a million British tourists come to Bulgaria each year – to the Black Sea coast in summer and to ski resorts like Bansko in winter. In addition, around 40,000 UK nationals own property and live here either temporarily or permanently.

Recent Bilateral Visits

To Britain

March 2005 Deputy Prime Minister Plamen Panayotov
July 2006 Mayor of Sofia Boiko Borissov
July 2006 Foreign Minister Ivailo Kalfin
April 2006 President Georgi Purvanov
October 2006 Minister for European Affairs Meglena Kuneva
October 2006 Minister for Labour and Social Policy Emilia Maslarova
January 2007 Deputy Minister of Foreign Affairs Evgenia Koldanova
February 2007 Minister of Economy and Energy Rumen Ovcharov
February 2007 Prime Minister Sergei Stanishev
April 2007 Interior Minister Roumen Petkov
March 2008 Justice Minister Meglana Tacheva
June 2008 Minister for European Affairs Gergana Grancharova

To Bulgaria

March 2005 Home Office Minister Caroline Flint
February 2006 Minister for Europe Douglas Alexander
April 2006 Home Secretary Charles Clarke
May 2006 Foreign Office Minister Dr Kim Howells
September 2006 Parliamentary Under Secretary for the Department of Constitutional Affairs Baroness Ashton
December 2006 Under-Secretary of State for Immigration Joan Ryan
January 2007 Secretary of State for Education and Skills Jim Knight
January 2007 Deputy Prime Minister John Prescott
February 2007 Minister for Europe Geoff Hoon
June 2007 Parliamentary Under Secretary for the Ministry of Justice Baroness Ashton
March 2008 Under Secretary of State for Crime Reduction Vernon Coaker
April 2008 Minister for Trade and Investment Lord Digby Jones
November 2008 Minister of State for National Offender Management Services and Youth Justice David Hanson
November 2008 Minister for Europe Caroline Flint

BULGARIA AND THE EU

Bulgaria joined the EU on 1 January 2007, as recommended by the European Commission in a report published in September 2006. However, the report outlined outstanding issues in Justice and Home Affairs (JHA), Bulgaria's progress on JHA continues to be monitored.

In July 2009 the European Commission published its third full report on Bulgaria's progress on outstanding issues in Justice and Home Affairs (JHA). The report was critical of the outgoing Bulgarian government's failure to make headway in the fight against corruption and organised crime, highlighting continuing issues with the efficiency of the pre-trial phase, and the administrative capacity of the police and judiciary. In September 2009 a report on Bulgaria's management of EU funds, of which over 500 million euro of EU funding are currently suspended, will assess improvements to the management of EU funds.

GEOGRAPHY

Bulgaria covers an area of roughly 42,800 square miles. It is mountainous, with plains in the north and in the south-east. It shares borders with Greece, Macedonia, Romania, Serbia and Turkey, and has a long Black Sea coast.

TRADE AND INVESTMENT

UK TRADE & INVESTMENT

Taken cumulatively, Britain was the fourth largest investor into Bulgaria between 1999 and 2008, with a total of €8,428 million, following Austria, the Netherlands and Greece. UK investment in Bulgaria in the first quarter of 2009 increased by 23.5% compared to the first quarter in 2008 from €2,258 million to €2,784.7 million. Bilateral trade has been growing steadily since 2001. In 2008 UK Exports to Bulgaria reached £201.4 million (increase of 21% on 2007 figures), with the highest value exports being specialised machinery for particular industries, telecoms and sound recording equipment and electrical machinery and appliances.

There is increasing interest from UK companies in Bulgaria and it is an important and growing business for UK consultants. Priority sectors include:

• Water - the introduction of private-public partnerships in the water sector in Bulgaria opened new opportunities for UK water companies and consultancies. Significant EU funding will be allocated for the construction and improvement of water and wastewater infrastructure.
• Environmental - improvement and development of waste treatment infrastructure, cleaner technologies and processes, environmental consultancy and monitoring, renewable energy production.
• Transport infrastructure - EU funding will help the construction and extension of roads, railways, ports and airports, with ongoing opportunities for consultancy and equipment.
• Education and Training - especially health and safety training, professional English training, vocational training, supply of special education needs products, supply of content for e-study books and distance learning.
• Communication - one of the UK’s main exports.
• Advanced engineering and Specialised machinery.
  

POLITICS

Government system: Parliamentary Republic
President: Georgi Purvanov
Prime Minister: Boyko Borissov
Foreign Minister: Rumiana Jeleva

Bulgaria is a parliamentary republic ruled by a democratically elected government. The Prime Minister is head of the executive branch. The National Assembly consists of 240 deputies who are elected for 4-year terms. Since 2009, 31 of the MPs are elected by majority vote and 209 by proportionate vote where voters select candidates from party or coalition lists in each of the twenty-eight administrative divisions. A party or coalition must receive at least 4% of the national vote to enter parliament. Parliament is responsible for, amongst other things, enacting laws, approving the budget, scheduling the presidential elections, declaring war and ratifying international treaties and agreements. There is no second chamber.

The President of Bulgaria is elected for a five-year term, with a two-term maximum. The President serves as the head of state and commander in chief of the armed forces. The President's main duties are to schedule elections and referenda, represent Bulgaria abroad, and to head the Consultative Council for National Security. The President does not have the power to invite someone to form a government following Parliamentary elections. He/she must instead grant the mandate to the party with the most seats. Also, the President has no veto; he/she may return legislation to the National Assembly for further debate, but it can be passed again by a majority vote. Presidential elections can go to two rounds. For a candidate to win in the first round he/she needs i) more than 50% of the vote and ii) a 50% turnout. If either condition is unfulfilled, the election goes to a run-off between the two nominees with the most votes.

Main Political Parties

Ruling Party:

• Citizens for the European Development of Bulgaria (GERB) 116 seats
  Centre-right party founded in December 2006. GERB won 116 seats in the 5 July general elections. The minority GERB cabinet was supported by the Blue Coalition, Ataka and the Law, Order and Justice MPs.
  Leader: Tzvetan Tzvetanov (although the de facto leader is the Prime Minister Boyko Borisso)
  European Parliament affiliation – European People’s Party (EPP) 5 MEPs

Other Parliamentary parties:

• Coalition for Bulgaria 40 seats. A loosely formed composition of left leaning parties, dominated by the Bulgarian Socialist Party (BSP).
  Leader: Sergei Stanishev (the former Prime Minister)
  European Parliament affiliation - Party of European Socialists (PES) 4 MEPs

• Movement for Rights and Freedoms (MRF) 38 seats.
  Centrist/Liberal party, which draws most of its support from the ethnic Turkish minority.
  Leader: Ahmed Dogan
  European Parliament affiliation - European Liberal Democrat and Reform Party (ELDR) 3 MEPs

• Ataka Coalition 11 seats.
  Ataka Coalition 21 seats – Extreme nationalist party, founded in 2005.
  Leader: Volen Siderov
  European Parliament affiliation – No group 2 MEPs.
  
  

• Blue Coalition 15 Seats. Coalition centre right parties
  Leader: Martin Dimitrov, chairman of the Union of Democratic Forces, Ivan Kostov, chairman of the Democrats for Strong Bulgaria, and Anastasia Mozer, leader of the United Agrarians (co-leaders)
  European Parliament affiliation – European People’s Party (EPP) 1 MEP

• Law, Order and Justice (LOJ) 10 seats A small centre right formation set up in 2005.  The key priority of their programme is fight against corruption.
  Leader: Yane Yanev
  European Parliament affiliation – European Conservatives and Reformists 0 MEPs

HUMAN RIGHTS

The FCO 2008 Annual Human Rights Report has information on Bulgaria’s human rights record.

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Useful Links

• BBC News Country Timeline: Bulgaria
• British Council - Bulgaria
• European Bank of Reconstruction and Development (EBRD)
• UK Trade & Investment Country Profile: Bulgaria 
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