Bulgaria 2016

The government remained stable throughout the observed period, aside from some oscillations in coalition relations, e.g. when the most dominant Citizens for European Development of Bulgaria (GERB) party looked for the parliamentary majority for certain law proposals among the opposition parties. GERB confirmed its current domination, with Boyko Borisov as prime minister, at local elections in October 2015, by getting seats and Mayors in almost all local governments. Elections were relatively free and fair, but vote buying, controlled voting and other violations marred the process, questioning its fairness. The President of Bulgaria, Rosen Plevneliev, submitted once again a motion on a change of electoral system at a referendum. This time the parliament approved the referendum, but cut out

There are no traditional unconstitutional veto players in Bulgaria which can interfere into government decision making process. However, high criminal rate and strong link between ruling political elite and wealthy oligarchs with their business interests are seen as a threat to democratic procedures in the country. Law proposal for fighting high level corruption entered into parliament in September, but some coalition partners voted against it and law didn’t pass. This could have a negative effect onto government efforts to tackle this burning issue, by showing that there is no unity between political actors on how to do it.

Freedom of the press is granted by the constitution in Bulgaria, but in practice this freedom declines rapidly. Huge political and editorial pressure on journalist reporting, high polarization of media and concentration of non-transparent ownership made the damage to the image of the press in the country. The Financial Supervision Commission was accused by many outlets to censor media freedom by imposing the large fines. It is the last of all European Union countries on the Reporters without Borders 2016 World Press Freedom Index, capturing a very low 113th place out of 180 countries. Bulgaria has wide range of traditional and online media outlets which are expressing diverse opinions. However, informing from various media sources is recommended for having a complete picture on a topic.

Judiciary in Bulgaria is still implementing the most basic EU standards. In Global Corruption Barometer 2013 it was perceived as the most corrupt part of public life. Since then, there were some small improvements. But political influences are still multiple, rather in high than in local judiciary. Backlog of cases and their allocation, itself suspected to be politically motivated, are also often a matter of dispute. There is a public mistrust in ombudsman bodies. Situation in prisons is bad. Long-debated judicial reform was partially implemented in December 2015. New constitutional amendments divided the Supreme Judicial Council to two entities, overseeing judges and prosecutors. But, the additional package of judicial reform, expected to reduce political influence on courts, was

Since 2007, Bulgaria regressed in fighting corruption, at least in relative terms. According to Transparency International`s Corruption Perception Index 2015, it stagnated as compared to 2014, with the score 41, placing her as 69 (of 168). During the past nine years, in spite of EU-compatible laws, the state remained captured by the alliance of political and corporate oligarchy, organized crime, partially reformed secret services and biased traditional media. As a participant in corruption, foreign authoritarian regimes are also present, through special intelligence operations or facade companies. A glimpse of hope might be found in local politics. The integrity of local authorities in Bulgaria is perceived as higher than of those at the national level. Transparency International-Bulgaria

Treatment of ethno-linguistic minorities is dubious – even though they generally enjoy their rights in education and media, use of minority languages is limited in some areas of public life, such as politics. Hate speech against minorities – Turks, Romany, Jews, Slavic Muslims, or “new” ones such as refugees – is present in broad public as well as in media according to Amnesty International with certain politicians using highly nationalistic and xenophobic rhetoric. Vigilantism against illegal border crossing and torturing the captured migrants by the self-proclaimed “defenders of citizens” was even praised on some local TVs, although police has subsequently arrested and processed the perpetrators. The building of a wall along the southern border with Turkey has been largely

Private property rights are not firmly protected in Bulgaria. As in other countries of the region, main problems arise from the weakness of the judicial system – strong out-of-court vested interest groups can strongly influence legal proceedings. Judiciary is one of the least trusted institutions in society. Constitutional amendments enacted in December 2015, aiming at promotion of judicial independence and transparency in selection process, are yet to be implemented and give results. Inefficient legal processes result in a significant backlog of cases, limiting the right to a legal proceeding in a reasonable timeframe. Enforcement of contracts is slow and inefficient, and comes at high costs. Resolving insolvency is even more so, with a very low recovery rate. Property registration is

Government expenditures in Bulgaria are much smaller in comparison to other European countries, reaching only 38.7% of GDP in 2015. Although economic growth has picked up and unemployment is falling, Bulgaria still remains one of the poorest countries in the EU, with slow income convergence. Fiscal stance has recently been improved - the deficit was reduced to 2.9% of GDP in 2015. It is expected to decrease further due to accelerated growth and stronger tax performance. Public debt is low by European standards, reaching 26.3% of GDP in 2015, although still well above the pre-crisis level. However, weak performance of the banking sector as well as malfunctioning of major state-owned enterprises still poses a fiscal threat. Furthermore, indirect government subsidies to inefficient SOEs

Bulgarian regulatory framework is mostly business-friendly, but there are many problems. Corruption of public servants, inefficient government bureaucracy and policy instability are considered as the problems affecting further improvements of business environment the most. Inconsistent application of laws, e.g. fostering favouritism by state officials, is another negative feature. Starting a new business is inexpensive but not very expedient - this procedure has recently been made easier by lowering registration fees. There is no minimum paid in capital. Obtaining electricity connection is very expensive due to high fees to the utility company. Tax regulations are overly complicated and burdensome, requiring long hours to comply, but overall number of payments is not high. Labour

Freedom of international trade is upheld in Bulgaria. Being an EU member state, it implements the EU common trade policy, which is mostly liberal, with overall low tariffs. Average applied tariff rate stands at 5.3%. However, agricultural products are on average more protected than the industrial ones. Thus, Bulgarian foreign trade is generally liberalized, but complicated and expensive standardization requirements for imported goods often create regulatory non-tariff barriers to trade. Customs office documentation compliance procedures are quick and inexpensive. However, corruption in the department remains an issue. Inadequate transportation infrastructure - both railways and roads - increases freight costs, thus burdening international trade. Bulgaria’s main export markets are fellow