Sunday

19th Aug 2018

Opinion

What to expect from Bulgaria's EU presidency?

  • Bulgarian prime minister Boyko Borisov. It will take Bulgaria the next 25 years, at an unprecedented annual productivity gain of four percent, just to reach EU average income levels (Photo: Vesselin Zhelev)

Jean-Claude Juncker and Donald Tusk competed with one another in Sofia last week to heap the most praise on Bulgaria, which assumed the presidency of the Council of the European Union for the first time on January 1.

Juncker joked of once holding the fate of Bulgaria's EU ascension in his hands, but promised Sofia would find its place in the Eurozone and the Schengen border-free travel zone.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

For all their confidence, however, Europe's top officials cannot dismiss serious doubts over whether Sofia can protect European interests against Brexit negotiations, a hybrid Russian threat, illiberal and populist movements, and the tense deliberations over Emmanuel Macron's eurozone proposals.

Are Juncker and Tusk right in believing the Bulgarians can pull it off?

To answer that question, we should look to Bulgaria's four priorities, decided together with predecessor Estonia and successor Austria.

The agenda includes the "economic and social cohesion" of the EU, the "security and stability" of Europe, the digital economy, and –bmost importantly – the "connectivity" binding the Western Balkans and the rest of Europe.

Bulgaria is a problematic standard-bearer for economic and social cohesion, to say the least.

The country technically meets all of the criteria to join the Eurozone and clearly has Juncker's support for its candidacy, but Bulgaria is also by far the poorest country in the EU with GDP per capita that is just 47 percent of the EU average.

The World Bank notes "productivity will need to grow by at least 4 percent per year over the next 25 years for Bulgaria to catch up with average EU income levels".

Sofia is also ranked 75th of 176 on the Transparency International corruption perceptions index and 109th of 180 on the World Press Freedom index.

Economic advancement is undermined by systemic corruption the government does little to address.

This scourge is visible everywhere: small towns host dozens of casinos and empty luxury shops, while the beneficiaries of illicit activities drive expensive cars and ordinary people are left to deal with a failing health system. High-ranking officials suspected of corruption face no consequences.

Pervasive rot

The EU is aware of this pervasive rot.

Brussels put Bulgaria under special supervision via the cooperation and verification mechanism (CVM) a decade ago, but the economy is still in thrall to organised crime.

A half-hearted anti-corruption law passed by parliament in December was immediately vetoed by president Rumen Radev – and then reinstated by parliament.

Foreign investors highlight the fact that the independence of Bulgaria's judiciary is highly questionable.

Corrupt local interests make it more difficult to attract and keep foreign investment.

In an open letter to the government, the country's major foreign business associations (representing France, the UK, US, Canada, Norway, and Austria) warn "the pervasive sense of lawlessness and impunity eroding Bulgarian society… contributes to Bulgaria largely lagging behind other EU members from Eastern Europe in all socio-economic aspects."

Onerous government regulations have sent many Western companies packing, leading foreign investment to markedly decline in recent years.

For all the huffing and puffing, Sofia's banner economic growth is merely the result of domestic consumption and absorption of EU funds.

Will Bulgaria have an easier time safeguarding European security?

As a Slavic and Orthodox nation, the country is a prime target for Russian propaganda.

BNO Shipka is a leading paramilitary organisation with deep ties to Moscow, has been sending militia groups to hunt refugees along the border with Turkey. Bulgaria's nationalistic, pro-Russian United Patriots have entered government as part of the ruling coalition.

Some of their ministers will be chairing EU committees during Bulgaria's presidency – only to be replaced later this year by Austria's far-right.

Russian energy interests

Russian interests in gas, nuclear, wholesale and retail fuel-distribution have secured their stakes in Bulgaria's energy sector through strong links with local oligarchs and politicians.

In Bulgaria's defence, the country is a committed member of NATO and is attempting to break the Russian stranglehold over its energy through diversification.

To succeed, the Bulgarians need the EU to show resolve in creating a genuine energy security policy that counters Moscow and offers workable alternatives. Juncker is right in insisting EU membership was the right decision.

Beyond its benefits to Bulgarian citizens, EU and NATO membership have jointly brought Sofia into the fold of Europe's security interests.

For all its struggles, the presidency could help Bulgaria boost replicate the economic dynamism of other 'new' EU members.

The focus on the "digital economy" was tailored to Estonia, but also highlights Bulgaria's overall lack of preparedness for the future.

The World Economic Forum ranks Bulgaria 69th of 130 in "networked readiness", behind even non-EU Balkan states including Macedonia (46th) and Montenegro (51st). This has encouraged investment in digital skills for an economy that sees far too many young people leaving to work elsewhere in Europe.

In fairness, Sofia is not the most problematic country for Brussels, avoiding Poland's violations of the rule of law and Hungary's provocations over EU refugee quotes.

Bulgaria's presidency could ultimately demonstrate its commitment to progress and constructive European consensus – but we should not underestimate the hurdles it will need to surmount in getting there.

Nicolas Tenzer is the chairman of the Paris-based Centre for Study and Research for Political Decision (Cerap), editor of the journal Le Banquet, author of three official reports to the government, including two on international strategy, and of 21 books.

Bulgaria's corruption problem mars EU presidency start

A dispute between the government and the president over an anti-corruption law has put the spotlight on one of the Bulgaria's main problems - just as it is trying to showcase its economic and social progress.

Bulgaria to take first steps towards euro

Bulgaria joining the single currency "will not result in any additional risk for the euro system", its finance minister said. The country's lev currency has been pegged to the euro since 1997, making it already highly dependent on ECB policy.

Bulgaria's president vetoes anti-corruption bill

Bulgaria is starting its six-month EU presidency amid attempts to shake off issues of corruption and poor press freedoms. Earlier this week, Bulgaria's president vetoed an anti-graft bill, claiming it was too weak.

EU needs commitment to rights in West Balkans

The European Commission's new West Balkans strategy means well - but it will need serious commitment to respecting the rule of law, not just paying attention when violence flares.

How long can Bulgaria keep facing both East and West?

Sofia may be wearing out its welcome with Western democracies by playing both sides - seeking closer integration in Europe while cosying up to Moscow and Beijing, claiming to work towards hitting EU targets while putting its own interests first.

News in Brief

  1. Germany and Greece strike deal on taking back migrants
  2. Merkel confronts far-right critics: '2015 will not be repeated'
  3. UN: Predictable disembarkation process urgently needed
  4. Slovenia set to select former comedian as prime minister
  5. Polish president to veto election rule helping big parties
  6. MEPs blast UK 'alphabetical approach' on citizens rights
  7. EU hits back over Salvini's blame for bridge collapse
  8. Poll: Sweden's social democrat-led government set to win again

EU's moment of truth in Khan al-Ahmar

EU states have spoken out in strident terms against the Israeli demolition of another Palestinian community - but what are they prepared to do to stop the war crime?

Stakeholders' Highlights

  1. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  2. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  3. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  4. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  5. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  6. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  7. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  8. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  9. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  10. Mission of China to the EUChina: Work Together for a Better Globalisation
  11. Nordic Council of MinistersNordics Could Be First Carbon-Negative Region in World
  12. European Federation of Allergy and AirwaysLife Is Possible for Patients with Severe Asthma

Latest News

  1. EU gets record response on 'summertime' consultation
  2. 'Nativism' and the upcoming Swedish and Bavarian elections
  3. Former Malta opposition leader fears for his life
  4. Women shun EU-funded site for female entrepreneurs
  5. Building a Europe more resilient to terrorism
  6. Brexit talks resume as chance of 'no deal' put at 50:50
  7. US trial sheds light on murky Cyprus-Russia links
  8. Burned cars fuel Swedish election debate

Stakeholders' Highlights

  1. PKEE - Polish Energy AssociationCommon-Sense Approach Needed for EU Energy Reform
  2. Nordic Council of MinistersNordic Region to Lead in Developing and Rolling Out 5G Network
  3. Mission of China to the EUChina-EU Economic and Trade Relations Enjoy a Bright Future
  4. ACCAEmpowering Businesses to Engage with Sustainable Finance and the SDGs
  5. Nordic Council of MinistersCooperation in Nordic Electricity Market Considered World Class Model
  6. FIFAGreen Stadiums at the 2018 Fifa World Cup
  7. Mission of China to the EUChina and EU Work Together to Promote Sustainable Development
  8. Counter BalanceEuropean Ombudsman Requests More Lending Transparency from European Investment Bank
  9. FIFARecycling at the FIFA World Cup in Russia
  10. Nordic Council of MinistersOECD Report: Gender Equality Boosts GDP Growth in Nordic Region
  11. Centre Maurits Coppieters“Peace and Reconciliation Is a Process That Takes Decades” Dr. Anthony Soares on #Brexit and Northern Ireland
  12. Mission of China to the EUMEPs Positive on China’s New Measures of Opening Up

Stakeholders' Highlights

  1. Macedonian Human Rights MovementOld White Men are Destroying Macedonia by Romanticizing Greece
  2. Counter BalanceControversial EIB-Backed Project Under Fire at European Parliament
  3. Nordic Council of MinistersIncome Inequality Increasing in Nordic Countries
  4. European Jewish CongressEU Leaders to Cease Contact with Mahmoud Abbas Until He Apologizes for Antisemitic Comments
  5. International Partnership for Human RightsAnnual Report celebrates organization’s tenth anniversary
  6. Nordic Council of MinistersNordic Cooperation Needed on Green Exports and Funding
  7. Mission of China to the EUPremier Li Confirms China Will Continue to Open Up
  8. European Jewish CongressCalls on Brussels University to Revoke Decision to Honour Ken Loach
  9. Nordic Council of Ministers12 Recommendations for Nordic Leadership on Climate and Environment
  10. Macedonian Human Rights MovementOxford Professor Calls for an End to the Anti-Macedonian Name Negotiations
  11. ACCAPeople Who Speak-Up Should Feel Safe to Do So
  12. Mission of China to the EUProgress on China-EU Cooperation

Join EUobserver

Support quality EU news

Join us