Don’t ignore Bulgaria’s progress, says deputy PM

Date: 19/09/02

BULGARIA'S leaders fear that the full extent of its recent economic reforms may not be recognised in the European Commission's forthcoming annual report on the country.

Deputy Prime Minister Nikolay Vassilev has presented the EU's executive with an exhaustive set of data to support his claim that Bulgaria is a functioning market economy. Along with neighbouring Romania, the Balkan state is not expected to be among the first wave of new entrants to the EU in 2004.

Yet Vassilev said Bulgaria's progress in opening markets demonstrates that it is complying with the economic criteria for EU membership.

Although frequently described as a laggard in the enlargement race, he feels Bulgaria is edging closer towards the bulk of other candidate countries in aligning its laws to EU norms.

Nevertheless, he fears that the Commission could fail to recognise how far Bulgaria has gone in altering its economy in its annual report on the country, due to be published on 9 October.

'We would not like the Commission to write the assessment before they get the facts but there is a risk that could happen,' he told European Voice.

'If we get a very positive assessment, the question of why we are not in the first wave would arise.'

A paper which Vassilev submitted to Enlargement Commissioner Günter Verheugen presents a rosy picture of Bulgaria's economy. It states:

• Bulgaria had the best performing stock market in the world during 2001; the Sofia stock exchange registered a growth of 20;
• The economy grew by 4 last year and 3.2 in the first four months of 2002;
• Its trade regime has been liberalised considerably, with customs tariffs now the only trade barriers;
• The privatisation of Bulgarian Telecommunications Company is under way, and;
• Bulgaria has succeeded in bringing its debt down to the level stipulated by the Maastricht Treaty; its gross public debt (both domestic and foreign) fell from 73 of national income in May 2001 to 59 in May 2002.

But the document acknowledges that the country's unemployment rate remains 'very high'. Although the rate fell by 3.4 in 2000-1, more than 17 of Bulgaria's workforce were still out of work at the end of July.

Vassilev said the 'most pessimistic scenario' was that Bulgaria, which has eight million inhabitants, would join the Union in 2007. He is seeking a firm date for accession, although he is not adamant this must be agreed at December's Copenhagen EU summit.

'Whether we are given a formal date or not, we would like to have an idea about what is going to happen,' he added. 'We don't want to be left out.'

Bulgaria's leaders fear that the full extent of its recent economic reforms may not be recognised in the European Commission's forthcoming annual report on the country. Article is part of a European Voice survey on enlargement.