Political Overview

     Parliamentary System

     Under its July 1991 constitution, Bulgaria is a parliamentary republic with a parliamentary executive. It has a single chamber, 240-member parliament, the National Assembly, which is elected every five years by universal suffrage. Members are elected through a system of proportional representation, with a four per cent threshold for party representation. The Prime Minister and Cabinet are drawn from the group able to command a majority in the Assembly.
     The President, who is also Commander-in-Chief of the Armed Forces, is popularly elected once every five years for a maximum of two terms. The President enjoys largely ceremonial powers but does hold certain emergency powers and may return legislation to the National Assembly for further consideration, which can in turn be overruled. Mr Georgi Purvanov was elected President for his first presidential mandate in november 2001. On the presdiential elction which took part in October 2006, he was reelected on the second tour on 29 October 2006.
     The current national government is made up of triple coalition between Coalition for Bulgaria (Bulgarian Socialistic party), with leader Sergey Stanishev, Simeon II National Movement (SNM), with leader Simeon Saxe-Coburg and the Movement for Rights and Freedoms (MRF), with leader Ahmed Dugan.. Bulgarian socialistic party is left orientated organization; the SNM is a centre-right party, MFF represents the Turkish minority in Bulgaria. The main opposition parties are the Union of Democratic Forces (UDF), centre-right party with chairman Peter Stoyanov, Democrats for Strong Bulgaria - right orientated party with chairman Ivan Kostov party Ataka - organization of Bulgarian nationalists and the People's Union - center right party. The parties have the following representation in the national assembly: Bulgarian socialistic party - 82 deputes, Simeon II National Movement - 53, Movement for Rights and Freedoms - 34. Union of Democratic Forces - 17, Democrats for Strong Bulgaria - 16, People's Union - 13, party Ataka - 12 and 13 independent deputies.

     Recent Political Developments

     Bulgaria has seen six changes of government since the fall of communism in 1989, alternating between the UDF and the BSP. However, in June 2001, political developments took a new turn when the former King Simeon Saxe-Coburg, leader of the newly-formed SNM was elected Prime Minister. Following World War II, Saxe-Coburg had been exiled by the Communist Party at a very young age. The SNM formed a coalition government with the MRF in July 2001.
     The government reached many of its targets - financial stabilization, privatization of government assets and economic growth. In foreign police the successes of the government are the acceptance of Bulgaria for NATO member (on 2 April 2004) and proceeding in the negotiations for EU membership. In the parliamentary election which took part on 25 June 2005 year, Simeon II National Movement lost its leading role. It became second political force, removed by Bulgarian socialistic party. No of the parties had the majority to establish its own government. After long and heavy negotiations the current government was formed by Bulgarian socialistic party, Simeon II National Movement and Movement for Rights and Freedoms The prime minister is Sergey Stanishev, the leader of Bulgarian socialistic party. It has the leading role in the council of ministers, holding most of the ministries. The main goal of the cabinet is finalization of negotiations with European Union. Bulgaria received data for joining the EU which is 1 January 2007. From this date the country will become full right member of the European Union.
     The main internal political targets of the government are continuing of economic reforms, finalization of privatization, and keeping of the economic growth.

     Foreign Policy

     Bulgaria's target number 1 in its foreign policy for the last decade has been its acceptance in European Union as full right member. The country has finished the intensive negotiations with the EU, following the signing of Treaty for joining of Bulgaria with EU, which took place on 25 April 2005. The country will become member of the union on 1 of January 2007. This will make Bulgaria part of the Schengen Agreement and it will become outer border of EU.
     Most immediate purposes of Bulgarian foreign policy are the recognition of the country in the union, sending of its representatives in the institutions and commissions of the union and assumption of the pre joining funds, which will be granted by the community for the development of the country.
     Relations with Russia have become more complex since the end of the Cold War. While Bulgaria sees its future in close alliances with the EU and western countries and institutions, it is partly reliant on Russia for its energy needs and cannot afford strategically or commercially to sever all its ties.Bulgarian is active member of NATO and Organization of United Nations. It has participated and continues to be part of pacifying missions in Iraq and Afghanistan and other crisis places on the Globe.
     Bulgaria takes an active role in multilateral institutions. Bulgaria is engaged at an international level in disarmament issues and is a member of the Australia Group and several other like-minded groupings such as the Wassenaar Agreement, the Zangger Committee, the Nuclear Suppliers Group and since June the Missile Technology Control Regime. Bulgaria is a member of the Council of Europe and in the second half of 1994 became the first former communist state to hold the Presidency. Bulgaria joined the World Trade Organization in 1996.

Economic overview

     Bulgaria is a middle income country with a gross national income per capita of $3,450 in 2005 (GNI, Atlas method). In real terms, the 2005 GNI is 97 per cent of the 1989 level, the year the country began democratic reform. Agriculture, tourism, light industry, and metallurgy are key sectors of the economy.The economy of the country is developed on the industry built before the democratic changes in 1989 year, the private sector and the foreign investments made in the country after its turn to democracy.
     In 1997 country experienced deep economic crises and hyperinflation. After the establishment of monetary counsel the economy stabilizes and starts growing. Over the past several years, Bulgaria has made impressive progress towards long-term stability and sustained growth. As a result of sound macroeconomic policies and deep structural reforms, average growth has reached close to 5 percent per year in 2000-2005. A broad structural reform program contributed to the recent solid economic performance. Growth is led by the private sector, which now accounts for 75 percent of the economy - on par with the average for the eight Central European and Baltic countries that joined the European Union (EU) on May 1, 2004.
     Current government reforms build on the gains of the past six years and focus on promoting growth and reducing poverty. Accordingly, the government has embarked on a strategy of creating an investment climate that encourages private investment, increased productivity, and sustained growth.Finalization of privatization remains the focus of the present Stanishev government. The government is making attempts to attract further foreign investment by combating embezzlement, corruption and legal violations.

     Current Economic Trends

     Bulgarian economy is characterized with stable growth in 2006. The joining towards the European Union will make the country economy part of the global European market. The rate of foreign investments increases in 2005 and 2006. Most attractive sectors are tourism, food producing industry and real estates market.      The economic growth for the year 2006 is expected to be 6 percents. The business climate is appreciated as favorable by the economic agents. The index ESTAT continues to grown in the year 2006.The deficit on the current account continues to increase, but it is lower than the amount of foreign investments which are expected to reach three billion euro until the end of the year. Export grows faster than import and the most significant is the increase of export for the Balkan counties, higher with 50 percents in comparison with the first half of 2005. Low incomes of the population have provoked measure from the socialistic government. New social sector reforms are emphasizing the development of human capital to complement investments in physical capital. They include social-protection programs that target high levels of long-term unemployment and entrenched poverty.