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U.S. Department of State Background Note

Bulgaria

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Bulgaria

GEOGRAPHY AND PEOPLE

Bulgaria is a parliamentary republic. The unicameral National Assembly, or Narodno Subranie, consists of 240 deputies who are elected for 4-year terms through a system of proportional representation in 31 electoral regions. Party or coalition lists, rather than individual candidate names, appear on the ballots. A party or coalition must garner a minimum of 4% of the vote in order to enter parliament. Parliament selects and dismisses government ministers, including the prime minister, exercises control over the government, and sanctions deployment of troops abroad. It is responsible for enactment of laws, approval of the budget, scheduling of presidential elections, declaration of war, and ratification of international treaties and agreements.

A one-month official campaign period precedes general elections. The voting age is 18. Preliminary results are available within hours of poll closings. Seats in parliament are allocated both by vote and by voter turnout. The votes for parties who did not receive a minimum threshold of votes are redistributed to other parties proportionate to their own share of the vote. The lists of newly elected members of parliament are announced 7 days after the elections. The president must convene the new parliament within one month after the elections, and calls upon parties, coalitions, or political groups to nominate a prime minister and form a government. If the three largest parties, coalitions, or political groups fail to nominate a prime minister, the president can dissolve parliament and schedule new elections. In recent years, it has taken approximately a month for the new government to form. A general election in Bulgaria was held June 25, 2005. Results are as follows: Coalition for Bulgaria (CfB) 31.1%, National Movement Simeon II (NMS2) 19.9%, Movement for Rights and Freedom (MRF) 12.7%, ATAKA 8.2%, United Democratic Forces (UDF) 7.7%, Democrats for Strong Bulgaria (DSB) 6.5%, Bulgarian People’s Union (BPU) 5.2%.

The president of Bulgaria is directly elected for a 5-year term with the right to one re-election. The president serves as the head of state and commander in chief of the armed forces. The president is the head of the Consultative Council for National Security and while unable to initiate legislation, the president can return a bill for further debate. Parliament can overturn the president's veto with a simple majority vote. Bulgarian Socialist Party candidate Georgi Purvanov won the November 2001 presidential election and was re-elected in October 2006.

The prime minister is head of the Council of Ministers, which is the primary component of the executive branch. In addition to the prime minister and deputy prime ministers, the Council is composed of ministers who head the various agencies within the government and usually come from the majority/ruling party or from a member party of the ruling coalition in parliament.

The Council is responsible for carrying out state policy, managing the state budget and maintaining law and order. The Council must resign if the National Assembly passes a vote of no confidence in the Council or prime minister.

The Bulgarian judicial system became an independent branch of the government following passage of the 1991 constitution. Reform within this branch was initially slow. In 1994, the National Assembly passed the Judicial Powers Act to further delineate the role of the judiciary. In 2003, Bulgaria adopted amendments to the constitution, which aimed to improve the effectiveness of the judicial system by limiting magistrates’ irremovability and immunity against criminal prosecution.

The first, appellate, and cassation (highest appellate) courts comprise the three tiers of the judicial system.

The Supreme Judicial Council (SJC) is composed of 25 members serving 5-year terms. Those who serve on the council are experienced legal professionals and are either appointed by the National Assembly, selected by the judicial system, or serve on the SJC as a result of their position in government. The SJC manages the judiciary and is responsible for appointing judges.

The Supreme Court of Administration and Supreme Court of Cassation are the highest courts of appeal and determine the application of all laws.

The court that interprets the constitution and constitutionality of laws and treaties is the Constitutional Court. Its 12 justices serve 9-year terms and are selected by the president, the National Assembly and the Supreme Courts.

Principal Government Officials
President--Georgi Purvanov
Prime Minister--Sergei Stanishev
Deputy Prime Minister/Minister of Foreign Affairs--Ivailo Kalfin
Deputy Prime Minister/Minister of Education--Daniel Vulchev
Deputy Prime Minister/Minister of Disaster and Accidents--Emel Etem
Minister of Defense--Vesselin Bliznakov
Minister of Economy and Energy--Rumen Ovcharov

Bulgaria maintains an embassy in the United States at 1621 22nd Street, NW, Washington DC 20008 (tel. 202-387-0174; fax: 202-234-7973).

ECONOMY

Bulgaria's economy contracted dramatically after 1989 with the collapse of the COMECON system and the loss of the Soviet market, to which the Bulgarian economy had been closely tied. The standard of living fell by about 40%. In addition, UN sanctions against Yugoslavia and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew in 1994 for the first time since 1988, by 1.4% and then by 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to shortsighted economic reforms and an unstable and de-capitalized banking system.

Under the leadership of former Prime Minister Ivan Kostov (UDF), who came to power in 1997, an ambitious set of reforms were launched, including introduction of a currency board regime, bringing growth and stability to the Bulgarian economy. The currency board contained inflationary pressures and the three-digit inflation in 1997 was cut to only 1% in 1998. Following declines in GDP in both 1996 and 1997, the Bulgarian Government has delivered strong, steady GDP growth in real terms in recent years. Prime Minister Simeon Saxe-Coburg’s economic team of young, Western-educated financiers continued to implement measures that helped sustain stable economic growth and curb unemployment. Measures introduced by the government were targeted at reducing corporate and individual taxes, curtailing corruption, and attracting foreign investment. The government also restructured the country’s foreign debt, revived the local stock market, and moved ahead with long-delayed privatization of some major state monopolies. As a result of this progress, in October 2002 the European Commission declared Bulgaria had a "Functioning Market Economy."

Bulgaria’s current government has continued these reforms, and as a sign of Bulgaria’s progress, in 2007 the country joined the European Union. According to the World Bank, in 2006 Bulgaria attracted the highest levels of foreign direct investment, as a share of GDP, among Eastern European countries. In early 2007, in order to attract additional foreign investment, the Bulgarian Government lowered corporate tax rates to 10%, reportedly the lowest rate in Europe. Despite Bulgaria’s many successes, organized crime and corruption remain problems.

DEFENSE

Bulgaria became a member of NATO on March 29, 2004 after depositing its instruments of treaty ratification in Washington, DC. Bulgaria's military is currently undergoing an ambitious restructuring program aimed to bring the army up to NATO standards, modernize equipment, and transform to an all-volunteer force.

Bulgaria has been an active participant in military operations outside its borders. It currently has company-sized units working with coalition forces in Afghanistan and Iraq, deployed a frigate to Lebanon with UNIFIL in late 2006, and has small contingents of troops deployed with international forces in Bosnia and Herzegovina and Kosovo.

FOREIGN RELATIONS

Bulgaria became a member of the North Atlantic Treaty Organization on March 29, 2004, and a member of the European Union on January 1, 2007. Bulgaria is a member of the United Nations and in 2002-2003 served a 2-year term as a nonpermanent member on the UN Security Council. Bulgaria served as Chair-In-Office of the Organization for Security and Cooperation in Europe (OSCE) in 2004.

Bulgaria joined the World Trade Organization in 1996. In July 1998, Bulgaria became a full member of the Central European Free Trade Agreement (CEFTA), which called for the reduction of tariffs by 2002 on most industrial and agricultural goods traded between CEFTA countries. Bulgaria has initialed free trade agreements with Turkey, Macedonia, Croatia, Lithuania, Estonia, Israel, Albania, and Latvia.

Bulgaria's relationship with its neighbors has generally been good. Bulgaria has proven to be a constructive force in the region and has played an important role in promoting regional security.

U.S.-BULGARIAN RELATIONS

The year 2003 marked the 100th anniversary of diplomatic relations between the United States and Bulgaria. U.S.-Bulgarian relations were severed in 1950 but were restored a decade later. Bilateral relations between the two nations improved dramatically after the fall of communism. The United States moved quickly to encourage development of multi-party democracy and a market economy. The U.S. signed a Bilateral Investment Treaty in 1994 and gave Bulgaria most-favored-nation trade status in October 1996.

In 1989, the U.S. Congress passed the Support for East European Democracies Act (SEED), authorizing financial support to facilitate development of democratic institutions, political pluralism, and free market economies in the Balkan region. Since 1990, Bulgaria has received over $600 million in SEED assistance. In 2007, after its EU accession, Bulgaria is graduating from the SEED program.

In May 2005 the United States and the Republic of Bulgaria signed a Defense Cooperation Agreement, which gives the United States military access to and shared use of several Bulgarian military bases. The United States military intends to use this access to facilitate joint training with the Bulgarian and Romanian militaries.

Bulgaria hosts the only fully American university in the region, the American University of Bulgaria in Blagoevgrad, established in 1991, drawing students from throughout southeast Europe and beyond. As of 2007, the American University of Bulgaria had over 1,000 students.

Principal U.S. Officials
Ambassador-- John R. Beyrle
Deputy Chief of Mission--Alexander Karaqiannis
Counselor, Public Affairs--David Siefkin
Director, USAID--Michael Fritz
Political/Economic Counselor--Brad Freden
Senior Commercial Officer--James Rigassio
Consular Officer--Daniel Perrone

The U.S. Embassy is located at 16 Kozyak Street, Sofia; tel: [359] (2) 937-5100; facsimile: [359] (2) 9375-320.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

Revised: Mar. 2007

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