BULGARIA Solid economic performance paves the way for EU accession
EXPECTING AN INVITATION INTO THE EU BY 2007 AT THE LATEST, THIS YEAR BULGARIA IS BANKING ON JOINING NATO. THIS MOVE WILL PAVE THE WAY FOR INCREASED TRADE AND INVESTMENT WITH THE U.S.

SOLOMON PASSY Minister of Foreign Affairs

The Bulgarian government understands that economic transformation in the country will go hand in hand with membership in the European Union and NATO. Minister of Foreign Affairs Solomon Passy outlines his government’s twin foreign policy priorities. “Chronologically speaking, the first is NATO integration and we are expecting an invitation to join during the 2002 Prague Summit. The second priority is membership in the EU and we are expecting to complete negotiations at least by the year 2004, with membership coming in 2007.”

Bulgaria has been blessed with and has worked hard to preserve its economic and political stability in the midst of ongoing Balkan turmoil, and has greatly expanded its commercial ties with Western Europe and the United States. At present, the EU is Bulgaria’s largest trading partner, accounting for 60% of its trade.

BULGARIA’S ABILITY to preserve economic and polital stability while surrounding Balkan states suffered is now paying off.

The U.S. is the sixth-largest investor in the country and accounts for 3% of Bulgaria’s overall volume of trade. Bulgaria also has a leading role to play in regional economic infrastructures and political stability. The U.S., EU, and the governments of Southeast Europe have committed to a Stability Pact to promote regional prosperity and stability, which will lead to new and expanded trade and investment opportunities in Bulgaria over the long term.
Bojidar Bojinov, Chairman of the Bulgarian Chamber of Commerce and Industry, states, “this is the first time in history that the governments of the Balkans have shown good will towards each other. It is a very important moment for the future.” Mr. Bojinov also mentions the Balkans’ movement towards a free trade zone, a fact he believes essential for EU membership.

In February, the government released a plan to wrap up EU entry talks by 2003. The new strategy makes clear that the cabinet will address all the issues the EU has named as the top obstacles to Bulgaria’s accession–judiciary, administration and energy sector reforms, privatization and liberalization, eliminating corruption, discrimination against Roma gypsies, and developing capital and land markets. The action plan includes a six-month program with steps and deadlines for implementation. It will be updated in July and then again each semi-annual period. Also in February, the World Bank agreed to lend Bulgaria $450 million in balance of payments assistance to support the country’s progress in attaining these goals.

PHILIP P. PHILIPOFF Executive Director of AmCham in Bulgaria

U.S.-Bulgarian bilateral relations are good and continue to improve steadily. Under its Southeast Europe Initiative, the U.S. is encouraging greater American trade and investment in Bulgaria and has offered Most-favored Nation status to the country. However, as Philip P. Philipoff, Executive Director of the American Chamber of Commerce in Bulgaria, notes, “one of the most important ways to strengthen relations with the U.S. lies in Bulgaria’s integration into NATO. This will help boost commercial relations between both countries.”