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Bulgaria’s entry into the EU
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| On the 25th of April 2005 Bulgaria signed the accession treaty that will hopefully see it join the EU in January 2007. However, the government had to agree to a series of reforms before final membership could be granted – if these were not met by an agreed deadline then entry to the EU would be delayed. These reforms include the streamlining of business registration and the improvement of the business environment, the privatisation of many remaining public enterprises, the introduction of greater flexibility within the labour market, and a sweeping modernisation of the education system.
According to the Comprehensive Monitoring Report 2005 regarding the economic criteria for accession, Bulgaria continues to make good progress. If this continues as anticipated Bulgaria should be capable of coping with the competitive pressure and market forces it will encounter upon entry.
Progress has been made in most areas where improvements were suggested in last year’s report, but a number of challenges remain. After narrowing in 2004, the trade and current account deficit widened considerably again in the first half of 2005. Further measures have been taken to curb bank credit growth, but the continuation of prudent fiscal policy and moderate wage increases remains critical to containing potential risks for the external balance and the situation needs to be closely monitored. Further reforms are needed to improve the business environment, and in particular the functioning of the administrative and judicial system. The streamlining of business registration has started, but has not been completed. The privatisation programme is well underway but progress needs to be maintained. Little progress has been made in improving labour market flexibility, which, together with a comprehensive reform of the education system, would be crucial for dealing with skills mismatches and improving the adaptability of the Bulgarian economy.
According to the May 2006 monitoring report, topping the issues of concern are organised crime and corruption. Bulgaria is expected to implement thorough reforms in its judiciary and public administration systems. Under an agreement with the EU, the country must also close down two Soviet-era nuclear reactors at the Kozloduy plant by 2006. This plant provides nearly half the country's electricity needs, and the plans to decommission the ageing reactors are being met with growing resistance from the public.
Bulgaria has implemented 82 % of the measures under the action plan adopted after the latest critical report of the European Commission presented in May this year. The European Affairs Minister Meglena Kuneva reported recently that 385 out of all 466 measures in the European Commission recommendations have been implemented.
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Investment Opportunity
There has never been a better time to invest in Bulgaria. The economi... more
Why Bulgaria?
Bulgaria is the fastest growing holiday and property investment destin... more
About Bulgaria
For tourists and property investors alike, Bulgaria truly has it all. ... more
General information
The Republic of Bulgaria covers 110,910sq km and has a population of 7... more
Airports
Sofia Airport
Sofia airport is just 5km east of the ... more
Climate
Bulgaria is blessed with an almost perfect climate. Summers are typica... more
Culture and Traditions
As you’d expect of a country with such a long a chequered history Bulg... more
History
Bulgaria has a long, turbulent and fascinating history. It has been i... more
Economy
How favourable is it for foreign investors?
The Bulg... more
The property market in Bulgaria
Bulgarian real estate sector is currently very buoyant – there is no s... more
Government
Bulgaria is a stable Parliamentary Republic. The constitution was rat... more
Useful Tips
Body language
It’s confusing - you need to understand that... more
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