change of guard - amcham.bg€¦ · issue 62 september 2005 americ an chamber of commerc e in...
TRANSCRIPT
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A m e r i c a n C h a m b e r o f C o m m e r c e i n B u l g a r i a
h o m e p a g e : w w w . a m c h a m . b g e - m a i l : a m c h a m @a m c h a m . b gBus in e s s Pa rk So f i a , M lados t 4 A re a , Bu i l d ing 2 , F lo o r 6 , 1 7 1 5 So f i a
Te l . : ( 3 5 9 2 ) 97 6 9 5 6 5 Fax : ( 3 5 9 2 ) 97 6 9 5 6 9
Events:New U.S. Ambassador JohnBeyrle Arrives in Sofia
U.S. Senator Chuck HagelMeets President Par vanov
Events:New U.S. Ambassador JohnBeyrle Arrives in Sofia
U.S. Senator Chuck HagelMeets President Par vanov
AmCham Inter views:Deput y Prime Minister Ivaylo Kalfin
HE Jeremy Hill , Her Majest yAmbassador to Bulgaria
AmCham Inter views:Deput y Prime Minister Ivaylo Kalfin
HE Jeremy Hill , Her Majest yAmbassador to Bulgaria
Change of GuardChange of Guard
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e d i t o r i a l
Dear Members and Friends, Dear Reader,
Looking at this issue's
cover, some of you may
ask, Isn't it a bit too late
for a picture of Sergey
Stanishev with Simeon
Saxe-Coburg-Gotha? After
all, Bulgaria's new govern-
ment is already old news
by now?
As I've said more than
once, AmCham Bulgaria
Magazine is not a break-
ing-news publication. Instead, our goal is to analyze trends,
express opinions and make informed predictions. That is
why I consider it very appropriate to run several texts
about the government transition in our September issue
(see pages 4-14). I am sure some of you will reach for the
scissors to cut out the list of new cabinet members' bios
and pictures, so you can have a handy miniature Who's
Who of Bulgaria's top political leadership, which you can
use at the many AmCham events with cabinet-level par-
ticipation.
Ivaylo Kalfin, the new foreign minister, expressed the offi-
cial position on Bulgarian-U.S. relations (see page 20).
Prime Minister Stanishev said he would give an interview
to AmCham Bulgaria Magazine after his return from
Washington, D.C., so stay put for more on this important
topic.
This issue is devoted to new faces - new ministers, new
U.S. ambassador to Sofia (see page 32), new mission
director for USAID (see page 38). But that is not all. A new
author made its debut on our pages: bTV's talented
reporter Desislava Stoyanova has contributed to the issue.
Milen Minchev, a prominent reporter with the now defunct
Radio Free Europe, will be coming back from a three-year
stint in the United States. He expressed his willingness to
contribute to AmCham Bulgaria Magazine, too.
To sum it up: you are bound to see a new political sea-
son, new faces in the magazine, new opportunities for your
business.
Yours,
Milen Marchev
Editor-in-Chief
"The recent heavy rainfalls
did little to cool off a really
hot political season. The
2005 parliamentary elec-
tions, which led to some sur-
prises in the constitution of
the new National Assembly,
as well as the intense multi-
party negotiations for the
creation of a new govern-
ment, have been generating
much excitement in the com-
munity."
That was the beginning of
my address for the July issue
of AmCham Bulgaria Magazine and it represented what seemed to be
a rather eventful summer. Yet who could imagine that what we wit-
nessed in June and July would be far surpassed by early September?
Who would have predicted that floods would turn into a national dis-
aster affecting the life of all Bulgarians? The country went through a
tragedy which left thousands without home and hope, a catastrophe
that would shake our vulnerable economy quite seriously. Who would
predict that the usual political talks that precede the formation of any
new government would drag on for more than 50 days bringing the
country to the brink of new elections? The political gridlock took place
at a time when we needed desperately some competent leadership in
the face of natural disasters. Time was lost and now it would be very
hard to make up for the delay in the process of Bulgaria's EU acces-
sion. A massive amount of work remains to be accomplished toward
the EU membership goal which politicians of all stripes have declared
as a priority.
Meanwhile, nature seems to have turned against humans all over the
world. Half of Europe was in floods this summer, half was in flames;
Hurricane Katrina destroyed New Orleans and affected heavily the
Southern United States; earthquakes in Japan sparked new fears of
possible tsunami in the Pacific.
In this context, I read the Boyko Vassilev's article in the current issue
on the 'green wave' in world's politics and it came to my mind that not
just politicians but all of us should overcome our human selfishness
and egotism. We must stop the greedy and mindless exploitation of the
nature because this planet is our only home. This is the world our chil-
dren will inherit - shouldn't we take good care of our bequest to them
while we still can?
Best regards,
Valentin Georgiev
Executive Director
c o n t e n t s
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Publisher
American Chamber of Commerce in Bulgaria
Business Park Sofia, Mladost 4 Area
Building 2, Floor 6, Sofia 1715, Bulgaria
e-mail: [email protected]
www.amcham.bg
Editor-in-Chief
Milen Marchev
Deputy Editor-in-Chief:
Christopher Karadjov
Senior Editor:
Irina Bacheva
Layout, Design & Printing:
Milen Marchev
Writers:
Boyko Vassilev, Marina Tzvetkova,
Mina Georgieva, Panayot Angarev,
Yuliana Boncheva
Advertising
AmCham Bulgaria:
Nadejda Vakareeva, [email protected]
AmCham Bulgaria Magazine:
Milen Marchev, [email protected]
The AmCham Bulgaria Magazine reaches a broad audience
of AmCham members, leading US, Bulgarian and internation-
al companies, US and Bulgarian decision-makers, all
AmChams around the world.
Subscription is free of charge. If you would like to subscribe
to AmCham Bulgaria publications, please contact the
AmCham Bulgaria office.
i s s u e 6 2s e p t e m b e r 2 0 0 5
AmCham Bulgaria Magazine is a primary forum for political and economic analyses, news, viewpoints as well as for the presentation of new business oppor-
tunities. The articles in the AmCham Bulgaria Magazine express the opinions of the authors and do not necessarily reflect the position of the American
Chamber of Commerce in Bulgaria.
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a m c h a m b u l g a r i a
3M (East) AG . AA KRES EOOD . ABB Bulgaria Ltd. . AbC.R.O. - Bulgaria EAD .Abrotea Bulgaria AD . Accor Services Bulgaria . Acsior . ACT Soft Ltd. . AddressBulgaria Holding JSCo.- A real estate company . ADIS Ltd. . Advance InternationalTransport (Balkan) EAD . AES Corporation . AFA OOD . AIG Bulgaria . AIG LifeBulgaria . AIMS Human Capital . Alexandrov Ltd. . Allan Collautt Associates, Inc. .Allied Pickfords Bulgaria . Alter Ego Company . American College of Sofia . AmericanConstruction Products JSC . American English Academy . American University in Bulgaria(AUBG) . Amylum Bulgaria EAD . Anglo-American School of Sofia . Anton Preslavski,Liebert Hiross . APIS - BULGARIA Ltd. . APOLO Ltd. . Aries Commerce . ARGEN-TO Human Resource Solutions . Association of Bulgarian Broadcasters - ABBRO . ATEngineering 2000 Ltd. . AUDITING COMPANY VERSI & PARTNERS OOD . Avendi Ltd. .AVON Cosmetics Bulgaria Ltd. . Balkan News Corporation Plc. . Balkan Star .BalkanData / Lefkowitz & Co. . Banque Internationale pour le Commerce et leDeveloppement (BICD) . Baxter AG . Bayer Bulgaria . BearingPoint Inc. . BG Radio. Bodyguard-Fire-K Ltd. . Borislav Boyanov & Co. . Braykov's Legal Office . Bristol-Myers Squibb . Brown Forman Beverages Worldwide Sofia Branch LLC . BTC-NET Ltd.. Bulbank . Bulgarian American Enterprise Fund . Bulgarian Charities Aid Foundation(BCAF) . Bulgarian Post Bank . Bulgarian Telecommunications Company EAD .Business Media Group . Business Park Sofia EOOD . Business to Business . CA IBBulinvest . CableTel . Car Rental Bulgaria Ltd. . Cefin Bulgaria EOOD IVECO .Chelopech Mining EAD . Center for the Study of Democracy . CiscoSystems Bulgaria . Citibank, N.A.- Sofia Branch . City University . Clockwork . CMSCameron McKenna . Coca Cola H.B.C Bulgaria SA . Coca-Cola Bulgaria EOOD . COL-LIERS International . Commercial Bank Investbank Plc. . ConsulTeam Recruitment andSelection Ltd. . Contex Drouzhba Ltd. . Corsa Logistics Ltd. . Corstjens WorlwideMovers Group . CPM International Ltd. . Curtis / Balkan Ltd. . David Hampson, Grenville. DeConi M&A . Deloitte & Touche . DHL International (Bulgaria) Ltd. . DiageoBulgaria Ltd . Dimitrov, Petrov and Co. . DIMON Bulgaria . Djingov, Gouginski,Kyuchukov, & Velichkov . Domaine Boyar AD . Dr. Emil Benatov & Partners . DynCorpInternational LLC . Effekten Und Finanz - Bulgaria EAD . Electron Progress AD . EliLilly and Company . Elido (Lamel Ltd.) . Ellen Ruth Greenberg, Ph.D., Dr. I.S. GreenbergMedical Center . Elmek Spor Bulgaria . Elta consult AD associated partner of CB RichardEllis for Bulgaria . Emerson Process Management AG . Encouragement Bank AD .Engineeringservice Sofia Ltd. . EQUEST EAD . ERATO HOLDING PLC . Ernst & YoungBulgaria . EURO RSCG New Europe Sofia . Expo Team Ltd. . First Global HealthCorporation . Flying Cargo Bulgaria Ltd. - Licensee of FedEx . Force Delta Ltd. . ForemConsulting Bulgaria . General Electric International . Genmark Automation Bulgaria .GEO - CAR Ltd. . Glaxo SmithKline . Goleminov & Goleminov . Goodyear Dunlop TiresBulgaria . Grand Hotel Sofia . Group 4 Securitas (Bulgaria) Ltd. . Hayhurst Robinson. HEBROS Bank AD . Hewlett-Packard Bulgaria EOOD . Hilton Sofia . HoneywellEOOD . Horizon . IBM Bulgaria . Ideal Standard Bulgaria . In Time Ltd. . Infoguard- Stefan Nedkov . ING Bank Sofia Branch . Intel Czech Tradings Inc. . InterbrandsMarketing & Distribution Inc. EOOD . Interdean.Interconex . IP Consulting Ltd. . ISIEmerging Markets (Internet Securities, Inc.) . Janssen-Cilag (division of Johnson & Johnson). Junior Achievement Bulgaria . Kaliakra AD . Kamenitza AD . Kamor Auto Ltd. .Kolbis International Transfer Corporation . KPMG Bulgaria . Kraft Foods Bulgaria .LANDMARK . Lexim Sofia Ltd. . Lindner Bulgaria OOD . Lirex BG Ltd. . Lowe SwingCommunications . M & M Air Cargo Service BG Ltd . M3 Communications Group, Inc. AHil & Knowlton Associate . Maersk Bulgaria Ltd. . Magnetic Head Technologies .Management Systems International . Maritza East III Power Company AD . Marsh EOOD. McDonald's Bulgaria Ltd. . Merck Sharp & Dohme IDEA Inc. . Meridian HotelsBulgaria. Microsoft Bulgaria . Miltech Ltd. . MobilTel AD . Monbat PLC . MotenSport . Moto Pfohe Ltd. . Motorola Bulgaria EAD . National DISTRIBUTORS . NATODefense College (NDC) . NDT Equipment Supplies LTD . Neterra Communications . NetIs Ltd. . NET IS SAT Ltd. . Neumann International AG . New Europe Corporate AdvisoryLtd . Nexcom Bulgaria EAD . Opet Aygaz Bulgaria EAD . Oracle East Central EuropeLimited - Branch Bulgaria . Orbit Ltd. . ORKIKEM Ltd . Pain D'or Ltd. . Paxar Bulgaria.Pfizer H.C.P. Corporation, Representation Office Bulgaria . Pioneer Semena Bulgaria EOOD. Popov Legal Office . Pratt & Whitney . PricewaterhouseCoopers . Prima Soft Ltd. .Procter & Gamble Bulgaria . ProSoft . PSG Payroll Services Ltd. . Radisson SAS GrandHotel . Rising Force Co., Ltd. . Rockwell/Intelpack . S&D Chemicals Bulgaria . S&TBulgaria . Sante International OOD . Schering - Plough Central East - Bulgaria . Sciant. SEAF Management Bulgaria EOOD . Seplex Law Offices . Sheraton Sofia Hotel Balkan. Sherita M Ltd. . Sienit Ltd. . SigmaBleyzer Investment Group LLC . Sofia EchoMedia Ltd. . Soravia Bulgaria . Stefan Dimitrov, Norman Management Co. Ltd. .TechnoLogica . TeleLink AD . Tero Halmari, EBRD . The Atlantic Club of Bulgaria .The Executive Centre . Tissue Bank Osteocenter Bulgaria EAD . TM Auto Ltd. . TMF. Tumbleweed Communications EOOD . Unimasters Logistics Group AD . Unisys BulgariaBranch . Urban 3000 Ltd. . Vector Management Bulgaria . Via Expo Ltd. . VideoluxLtd. . VOCA Consult Ltd. . VSK Kentavar Ltd. . Westinghouse Energy Systems BulgariaBranch . Wrigley Bulgaria EOOD . Xerox Bulgaria Ltd. . Zlati Dinev Studio .
Board of Directors of the American Chamber of Commerce in Bulgaria
President Mr. Kenneth M. Lefkowitz NECA/Balkan Data, Inc.
Vice President Mr. Stefan Dimitrov Allied Pickfords Bulgaria
Treasurer Mr. Anthony Hassiotis Bulgarian Postbank
Members Mrs. Olga Borissova AUBG
Mr. Borislav Boyanov Borislav Boyanov & Co
Mr. Nick Davies Ernst & Young Bulgaria
Mr. David Hampson Grenville Financial
Mrs. Tanya Kosseva Landmark
Mr. Friedrich W. Niemann Hilton Sofia
Mr. George Randelov IBM Bulgaria
Mrs. Elitsa Tsaneva Ideal Standard Bulgaria
Mrs.Maria Vranovska Eli Lilly and Company
Ex-Officio Member Mr. James Rigassio US Senior Commercial Officer
Executive Director: Valentin Georgiev
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Change of Guard . . . . . . . . . . . . . . . . . . . . . . 4
By Marina Georgieva
v i e w p o i n t
BEF to government: Support business,
finish judicial reform, keep tight purse . . . . . . . . 15
Marina Tsvetkova
i n t e r v i e w
Ivaylo Kalfin:
Our relations With the
United States Are a Priority . . . . . . . . . . . . . . . 20
By Dessislava Stoyanova
e u a c c e s s i o n
Will Bulgaria Miss the Eurotrain? . . . . . . . . . . . . 23
By Yuliana Boncheva
a n a l y s i s
Greener Than Green? . . . . . . . . . . . . . . . . . . . 28
By Boyko Vassilev
e v e n t s
John Beyrle Takes Over
U.S. Ambassador Office . . . . . . . . . . . . . . . . . 32
US Ready to Boost Bulgarian Investments . . . . . . 33
a m c h a m e v e n t s
European Union to Monitor Closely
Funds for Bulgaria . . . . . . . . . . . . . . . . . . . . . 34
a m c h a m i n t e r v i e w
H.E. Jeremy Hill: Legislative Reforms in Bulgaria
Should Make the Law Process Efficient . . . . . . . . 36
By Irina Bacheva
n e w s
New USAID Director
to Prop up Judicial Reforms . . . . . . . . . . . . . . . 38
a m c h a m e v e n t s
AmChams Share Ideas, Goals in Prague . . . . . . . 40
m e m b e r n e w s
Bulgaria to Join Eurozone 2010 . . . . . . . . . . . . . 41
Mobiltel Chooses Tumbleweed Email Firewall . . . . 41
New General Manager of Hilton Sofia Appointed . . 42
40 Years of Coca-Cola in Bulgaria:
'We Are Here to Stay!' . . . . . . . . . . . . . . . . . . 43
Pfizer Receives Three of the Prestigious
Pharmaceutical Achievement Awards . . . . . . . . . . 43
Radisson SAS Grand Hotel Establishes
Its Own University . . . . . . . . . . . . . . . . . . . . . 44
207 High-School Students Granted
Scholarships by Postbank . . . . . . . . . . . . . . . . 44
ConsulTeam Joins Vedior Group . . . . . . . . . . . . 46
Kamenitza AD Appoints
New General Manager . . . . . . . . . . . . . . . . . . 46
n e w m e m b e r s . . . . . . . . . . . . . . . . . . . 47
CMS Cameron McKenna
Pratt & Whitney
Vector Management Bulgaria
m u s i c
The Top Fender® Females . . . . . . . . . . . . . . . . 48
By Snejanka Natcheva
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At 7:30 p.m. on Aug. 16, about half an hour after 169 mem-bers of the parliament had elected Bulgaria's next governmentand toasted each other with a glass of champagne, the newministers experienced for the first time the pleasant taste ofpower in front of the back entrance to the National Assemblybuilding.
That was actually the end of the 51-day saga of electingBulgaria's new cabinet. According to most of the political ana-lysts and public figures, the election of the cabinet indicatesthat wisdom has after all prevailed in Bulgaria's political life.Developments took a wise turn, as the only other optionbecame a new round of political squabbles and repeat elec-tions in the fall.
Still, from now on, and for a long period of time, the politicalcommunity will be engaged in a debate whether the glass ofdemocratic Bulgaria is half-full or half-empty, after a social-lib-eral government came to power in this country.
The structure and the members of the new government wereapproved with the votes of 169 BSP, NMSII and MRF repre-sentatives. For whatever it is worth, this is the largest par-liamentary support received by a Bulgarian cabinet after1989. BSP, NMSII and MRF will each have a deputy primeminister.
Sergey Stanishev was affirmed as Bulgaria's 61st prime min-ister. The Socialists received eight ministerial seats, and the
Change of GuardThe triple coalition between the Bulgarian Socialist Party (BSP), the National
Movement Simeon II (NMSII) and the Movement for Rights and Freedoms
(MRF) officially assumed the helm of the executive power. The new government
proclaimed itself as a cabinet of consensus, European integration, economic
growth and social security.
By Marina Georgieva
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former king's party - five. Ahmed Dogan personally nominatedthree of the new ministers.
Once the new cabinet was decided on, it became a tribute toefficiency in the transfer of power. At 10:00 a.m. on Aug. 17 allministers formally assumed office after a brief ceremony heldin the building of the Council of Ministers at 1 Dondukov St.
Ex-premier Simeon Saxe-Coburg-Gotha formally met with
his successor, Sergey Stanishev. In a short statement,Saxe-Coburg-Gotha wished the new government to remainin power for a full four-year mandate and to spare no effortsin its loyal service to Bulgaria. According to the formerprime minister, many Bulgarian citizens approve the liberalpolicy followed by the previous cabinet, and this fact washighlighted as one of the reasons for the decision made bythe NMS to participate as a coalition partner in the newadministration.
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The new prime minister was adamant that all participants inthe lengthy negotiations have assumed their responsibilitieswith the understanding that Bulgaria needs a stable coalitiongovernment, which would achieve the three main objectives ofthe state at this crucial time: European integration, high eco-nomic growth rate and social responsibility.
And now, what?
The most distinctive commitments set out in the election pro-grams of NMS and Coalition for Bulgaria (headed by the BSP)were forged as early as the expert stage of the negotiationsbetween the political forces, with the participation of the MRF, onthe identification of the government priorities. As a result ofmutual compromises, the status quo in the tax system most prob-ably will be preserved, while the more socially oriented promisesof the leftists, like the introduction of differentiated VAT rates andincreased taxes for higher incomes, will be cooled down.
The political priorities of the government are the accession ofBulgaria in the EU on Jan. 1, 2007, the reform of the judicialsystem, a stable 6-to-8 percent economic growth, guaranteedand accessible healthcare, the application of the Lisbon strate-gy, the equalization in the development of the regions, the bat-tle against crime and corruption, the continuation of the processof privatization of monopolies and the boost of competition.
A 40-percent distribution of expenses through the budget, andthe increase of the share of GDP allocated to infrastructure,
Prime Minister
SERGEY STANISHEV
Sergey Stanishevwas born in theUkrainian town ofHerson on May 5,1966. In 1995 hebecame expert atthe internationaldepartment of theBulgarian SocialistParty's headquar-ters. In 1996 BSP'snewly elected chairman, GeorgiParvanov, invited him into active poli-tics and later on named him his suc-cessor. At the first session of BSP's44th congress in 2000 Stanishev waselected as member of the party's high-er council. Then he joined the execu-tive bureau and became internationalsecretary of the party. He was electedas leader of the BSP on Dec. 15, 2001.
On July 5, 2001 he became MP in the39th National Assembly and chairmanof the parliamentary group of the
Coalition for Bulgaria. At the parlia-mentary elections in 2005 he was theleading candidate on CB's list in 2ndconstituency in Bourgas and 25th con-stituency in Sofia. On July 27, 2005 hewas elected as prime minister with 120votes for and remained premier forabout five hours, until the parliamentrejected the cabinet structure and theministers proposed by him.
Vice Premier and Minister
of Foreign Affairs
IVAYLO KALFIN
Ivaylo Kalfin entershigh politics with astable educationbackground: amaster's degree ininternational eco-nomic relationsfrom University ofNational and WorldEconomy (1988)and a degree ininternational banking fromLoughborough University, UK (1999),
as well as specialization courses inAustria and the USA. For several yearshe lecturered finance at theInternational University of Sofia, undera program of Portsmouth University.He is fluent in English, French, Spanishand Russian.
For the first time he was an MP of theBSP in the 37th National Assembly. Hewas among the first to speak of theneed for introducing a currency boardsystem already during Zhan Videnov'sgovernment.
In the 38th parliament he was a repre-sentative of the Euroleft, established in1997. Three years later, he leftAlexander Tomov and with another 20splinters or so founded the Social-Democrats Political Movement. Hisstatements as an MP were mainlyrelated to economic issues. Kalfin's bigjump was in 2003, when he becameeconomic adviser to PresidentParvanov. That prompted his beingdubbed as Stanishev's man in thepresident's team.
The new cabinet:
Ex Prime Minister and Simeon II National Movement leader Simeon Saxe-
Coburg-Gotha wishes luck to the new Prime Minister and leader of BSP Sergey
Stanishev.
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healthcare and culture are also among the targets agreed bythe BSP-NMSII-MRF triumvirate.
The VAT rate will be reduced to 18 percent only in case the bud-get allows it. A compromise was reached also on a reduction ofsocial security payments to 5 percent by the end of the mandate.
The coalition members also agreed on the introduction of azero tax rate on the reinvested profit, on the introduction offamily income tax, the financial support of child-care centersand kindergartens, credits for university students, the provisionof a minimum package of healthcare services, the fair solutionto the issue with the unpaid health insurance installments, thedevelopment of a national program for reversing the demo-graphic crisis - all these issue being commitments assumed bythe BSP without specific decision mapped for the time being.
It is also planned to smoothly raise pensions and to establisha "silver" investment fund with the objective to provide finan-cial support to the pension system. Another declared intentionis, in coordination with the International Monetary Fund (IMF),to make a substantial lump
increase of the wages
in the budget sector,
which is related to Bulgaria's integration into the EU, and toreduce to 10 percent the level of unemployment.
A couple of days after receiving the"briefcase with diplomatic secrets"from Solomon Passy, the new ministerfaced two big challenges: the AIDStrial in Libya and Bulgaria's EU acces-sion. Kalfin has already stated he willkeep the same line of policy towardsTripoli and the state will not pay com-pensations. The vice premier will haveto continue lobbying for fast ratificationof Bulgaria's EU accession treaty.
Vice Premier and Minister of State
Policy on Natural Disasters and
Industrial Accidents
EMEL ETEM
Born in the town ofIsperih on March4, 1958, she is amachine engineerby profession. Shewas MP in the39th NationalAssembly andmember of themedia committee.She was electedas member of the 40th NationalAssembly on MRF's ticket in the 18th
multi-member constituency in Razgrad.MRF's local structures in Razgradaccepted her nomination with reserva-tions and only after a sharp disputewith the party's leadership. Deputychair of the MRF. Her word carriesweight especially as concerns appoint-ment issues. She is believed to beclose to Ahmed Dogan. For some timeshe was in charge of MRF's mediarelations.
In the parliament, Emel Etem partici-pated in the work of the committee onlabor and social policy and the mediacommittee. She was one of the maininitiators of the appointment of StoyanCheshmedjiev as the head of theBulgarian News Agency BTA, whichtriggered a series of scandals andstrikes, resulting in his dismissal in theend.
During the first changes in the previ-ous government, Ms Etem wasrumored as candidate for the office ofminister of natural disasters. AhmedDogan stated then that "Emel Etem isgood for everything, including for avice premier."
Vice Premier and Minister of
Education and Science
DANIEL VALCHEV
Born in Bourgason Aug. 10, 1962,he studied at theFrench LanguageSchool in Varna.He graduated fromthe law depart-ment of St.Kliment OhridskiUniversity of Sofia,where he latertaught legal and political theories.Associate professor since 2004. In theearly 1990s he specialized in Paris(International Institute of PublicAdministration, 1991) and Rome (NATOMilitary College, 1992).
Before taking up a lawyer profession in1998 he gained experience in SofiaCity Court, as adviser in the president'soffice (1990-91) and head of personnelpolicy at the Defense Ministry.
Deputy chairman of Simeon II NationalMovement, he headed the European
James Owen of the analytical division of The
Economist magazine - The Economist Intelligence Unit
- expects an incomplete mandate of the new coalition
cabinet. Owen sees also an increasing probability that
Bulgaria's accession to the EU will be delayed by one
year. "I do not think that the government will be strong
enough to survive the whole four-year term. Still, it will
probably be stable enough to survive a year or a year
and a half, in order to be capable of pushing forward
the last circle of changes, which are required for
Bulgaria's accession to the EU, and perhaps this is the
most important aspect," Owen said.
"I think there is still a good chance that the accession
will take place in 2007 rather than in 2008, but the risk
of postponement is increasing. I would say that the
risk of delay now stands at 35-40 percent, compared to
a chance of 50 percent for an accession in 2007. There
is still a chance, albeit a small one, that the post-
ponement will be for more than one year in case polit-
ical relations in Western Europe continue to deteriorate.
This is not something that depends on Bulgaria or on
the situation in Bulgaria, it stems out of disagreements
inside the EU itself," the EIU expert said.
Foreign media onBulgaria's new government
Continued on page 10 Continued on page 10
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integration committee in the 39thNational Assembly. In March 2002 -July 2003 he represented theBulgarian parliament in the Future ofEurope Convent, which drafted theEuropean Constitution. He speaksFrench, English and Russian. Married,with two children.
Minister of Finance
PLAMEN ORESHARSKI
Born in the town ofDupnitsa in 1961.He graduated fromSofia's EconomicUniversity. He hasworked as financialauditor, financialadviser, head of thestate treasury anddebt directorate atthe Ministry ofFinance, deputy minister of finance inIvan Kostov's cabinet in charge of thestate debt and the financial system.
He has been in the management bod-ies of DSK Bank, Bulbank and theBulgarian Stock Exchange. Between
1987 and 1992 and since the summerof 2001 he has been lecturer at theUniversity of National and WorldEconomy, where he is dean anddeputy rector.
From March 2002 until July 2003 he wasdeputy chairman of the Union ofDemocratic Forces. In May 2003 theUDF nominated him as mayor of Sofia,but in July his candidature was withdrawndue to "contacts not sanctioned by theparty leadership." As a result Oresharskiresigned from the party position and quitthe UDF. Married, with one son.
Minister of Internal Affairs
RUMEN PETKOV
Born in Pleven onJune 23, 1961. Hestudied mathemat-ics and informaticsin Plovdiv and spe-cialized financialmanagement inSvishtov. In October2003 he headedthe BulgarianSocialist Party's
national election center for the localelections. In June 2002 he was electedas deputy chairman of the BSP highercouncil. Previously, between 1992 and1995, he was chairman of BSP's munic-ipal council in Pleven. Mayor of Plevenbetween 1995 and 1999. In 1999-2002he was secretary on coalition policy atthe BSP higher council. In 2001 he ledthe election campaign of PresidentGeorgi Parvanov and is believed to be aman of his closest circle. MP in the 39thand 40th National Assembly. Deputychairman of the BSP. Speaks Russian.Married, with two children.
Minister of Defense
VESSELIN BLIZNAKOV
Born in the townof Straldja on June18, 1944. He stud-ied medicine, spe-cializing in radiobi-ology and radiationhygiene. In the39th NationalAssembly heheaded the parlia-mentary energy
q u o t e s
President Georgi Parvanov:
This cabinet enjoys powerful support
"This is a cabinet with a solid program.This is a government with very strongexpert presence," Bulgaria's PresidentGeorgi Parvanov said. In his words, thegovernment features some of the mostrenowned experts and enjoys one ofthe most powerful political supportsever since transition started. "Thisgives guarantees that, figurativelyspeaking, its four years in office are 'inthe bag,'" he added. The head of statewished the new government to fulfilthe promises given to the electorate.
Movement for Rights and Freedoms
leader Ahmed Dogan:
This is a Guinness record
"Politicians performed their duty with acertain delay, to the detriment of tax-payers. It took 50 whole days, whereasin politics 24 hours are equivalent toan eternity," said MRF leader AhmedDogan after the National Assemblyvoted the Bulgarian government. "Infact, this is a Guinness record: in 27minutes the mandate was carried out,
the whole ceremony was completedwithin an hour," Dogan added.According to him, it was clear from thevery beginning that would be the finalresult. "Fifty days ago I promised youthat if the second mandate failed andthe third was given to the MRF, itwould be carried out in the shortestterms possible," Dogan said.
Ex Prime Minister and Simeon II
National Movement leader Simeon
Saxe-Coburg-Gotha:
I will wish them luck
"I will wish them luck, this is the mostnatural thing to do," said ex-PrimeMinister Simeon Saxe-Coburg-Gotha inresponse to a request to comment onthe new cabinet. Saxe-Coburg-Gothavoiced regret that some political forceswere not yet ripe enough for coalition.
Sergey Stanishev, Prime Minister of
the Republic of Bulgaria:
We will be led by wisdom and com-
mon will
"For the first time in the past 15 yearsBulgaria has a coalition and a gov-
ernment supported by the three
biggest parties in the National
Assembly. A left-center or social-lib-
eral coalition in its orientation. It will
seek the necessary reasonable bal-
ance between the market, the public
and the state to ensure the country's
progress. Our foundation is a princi-
pal agreement among the coalition
partners on the rights and responsi-
bilities of government, on mutual con-
trol, on clear principles of government
function and building consistent
mutual trust. We are well aware of the
fact that in the past 50 days the
Bulgarian parties and politicians to a
great extent disappointed and
annoyed the Bulgarian citizens, busi-
ness and trade unions. But now the
newly elected government and the
majority owe the people an answer
through active, purpose-oriented and
efficient work to carry out the key
objectives of government: economic
growth, social responsibility and
European integration. It also has to
take measures and help the people
who have been affected by the natur-
al disasters."
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According to the program of the tri-partite coalition, the new Penal Procedures Code must beadopted on an urgent basis by September 2005, as pressedby the EU. The Administrative Procedures Code and theHealthcare Act are also listed among the government priorities.These components of the priorities schedule of the currentgovernment mandate were left completely out of the draft pro-posed by the left-wing coalition partners, and were insteadsuggested by the NMSII.
For the time being, agriculture is addressed only in very gen-eral phrasing, envisaging bringing Bulgarian agriculture intocompliance with European norms. The energy sector seemsto be totally excluded from the government coalition agree-ments, too.
There is no clarity regarding two other major spheres - educa-tion and healthcare, which both need urgent reforms and contin-ue to drain enormous funds from the state budget without muchvisible results. Agreements provide for continuing the process offinancial decentralization in order to provide the municipalitieswith the option to set local taxes at their discretion.
The new government pledged to explain comprehensively theagreements and the commitments, related to the preparationfor EU membership. A special focus was placed on the preser-vation of Bulgarian national identity and protection of culture.The new cabinet is expected to initiate the necessary stepsrelated to the pullout of the Bulgarian contingent from Iraq.
committee and was member of thecommittee on foreign policy, defenseand security. Deputy chairman of theSimeon II National Movement.
Minister of Justice
GEORGI PETKANOV
During his fouryears in office asminister of interior,he was constantlyaccused by theright-wing opposi-tion of being BSP'ssecret weapon inS a x e - C o b u r g -Gotha's govern-ment. Born inSmolyan on Nov.1, 1947. After an internship at theSofia City Court, he worked as districtprosecutor in the town of Devin.
Since 1974 he has been lecturer atthe law department of St. KlimentOhridski University of Sofia, wherehe became associate professor in1989 and professor in 1996. Since1991 he has been member of the
university's academic council.Between 1991 and 1995 he wasdean of the law department and thendeputy rector of Sofia University. Heis a specialist in taxation and admin-istrative law; editor-in-chief ofContemporary Law, a specializedresearch magazine.
Minister of Transport
PETAR MUTAFCHIEV
Born in the town ofParvomay on April10, 1961, he has adegree in metallur-gical engineering.He is a specialistin industrial pro-duction manage-ment.
He has beenelected as a member of three con-secutive parliaments: the 38th, 39thand 40th National Assembly. In theprevious parliament he was deputychairman of the transport andtelecommunications committees.Married, with one child.
Minister of Economy and Energy
RUMEN OVCHAROV
Born in the city ofBourgas on July 5,1952, he is a spe-cialist in nuclearpower plants. Hewas minister ofenergetics in ZhanVidenov's cabinet(1996-1997). Heran for the mayorof Sofia in 1999.He has been elected as MP in the38th, 39th and 40th NationalAssembly. Deputy chairman of theBulgarian Socialist Party. He speaksRussian and English. Married, withthree daughters.
The key priorities of the mega-ministryof economy and energy are liberaliza-tion of the electricity market, speedingup the modernization of power capac-ities and construction of desulfurizinginstallations at the thermal powerplants, creating conditions for fast andsuccessful restructuring of theNational Electric Company and
German daily Frankfurter
Algemeine Zeitung stressed that the coalition between
the BSP, NMSII and MRF became possible only after
it had become clear that the only alternative would be
the early elections, at which the coalition partners
would hardly score the same number of parliamentary
seats they have now.
The newspaper asked what the future role of former
Prime Minister Saxe-Coburg-Gotha will be and to what
extend the NMSII parliamentary faction would remain
monolithic.
Frankfurter Algemeine Zeitung added that Bulgaria's
accession to the EU remained the main task of the
cabinet. The newspaper noted that there are no guar-
antees at all that accession will take place in 2007.
Austrian newspaper Der Standard highlights the rela-
tions between the former and the incumbent prime
minister, heading two of the parties in the current gov-
ernment coalition. Sergey Stanishev and Simeon
Saxe-Coburg-Gotha will find it difficult to work togeth-
er, wrote Der Standard. "Stanishev was, for a couple
of hours, a Prime Minister three weeks ago. Not his
opponent, popularly known as "The Tsar," signed a
coalition agreement that he himself turned down sev-
eral week ago. Thus, The Continued on page 12
Continued from page 8Continued from page 8
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The new Finance Minister, Plamen Oresharski does not con-ceal his resolution to weather most pressures from his col-leagues to untie the strings of the budget purse. Oresharskiwas adamant that he will follow a strict conservative budgetpolicy in order not to compromise the economic development.He stressed he will abide by the effective international com-mitments assumed by Bulgaria and that he will end the prac-tice of early retirement of sovereign debt.
A zero budget deficit or a budget surplus, at an increased neg-ative current account balance will most probably be some ofthe principles embedded in the 2006 budget, which wasdescribed by the new finance minister as one of his majortasks. He added that the country will fulfill all commitmentsnegotiated with the IMF for 2005.
Oresharski made some terse comments when asked aboutthe foreign debt deals, which were a favorite tool of his pre-decessor, Milen Velchev. He said that Bulgaria has alreadybought back everything that was feasible. Oresharski wasamong the most active critics of Velchev's initiatives in thisfield. The new finance minister reminded that he was alsoamong the opponents of the contract with Crown Agents forthe customs, but declined to specify the future of this con-tract with the explanation that the positive results of this pro-ject must be analyzed.
Bulgaria's credit rating was upgraded the day the new cabinetassumed its duties. On Aug. 17, 2005, FITCH international
Bulgargas, accelerating the privatisa-tion of Bulgartabac and the energycompanies and putting on track pro-jects for construction of high-techparks.
The big challenges facing Ovcharovinclude the implementation of the pro-ject for construction of the Belenenuclear power plant and the pressurefor re-opening of the energy chapter ofthe acquis and revision of the termsfor closure of Units 3 and Unit 4 of theKozloduy Nuclear Power Plant, whichwould be equivalent to political suicidein a historical plan.
Minister of Culture
STEFAN DANAILOV
Born in Sofia onDec. 9, 1942, hegraduated fromNational Academyof Theatrical andFilm Arts as stu-dent of StefanSarchadjiev andMetodi Andonov.His debut in cine-
ma was at the age of 14. During the1960s he became extremely popularwith the role of Major Deyanov in acommunist-time TV series. He hasplayed more than 100 roles inBulgarian and international film pro-ductions. He is an actor at Ivan VazovNational Theater and a professor atthe National Academy of Theatricaland Film Arts. He speaks Russian. Heis a member of the executive bureauof the BSP higher council. He hasbeen MP in the 39th and 40th NationalAssembly. Married.
Minister of Healthcare
RADOSLAV GAYDARSKI
Born in the villageof Gradets, Vidinregion, on Dec. 25,1937. He graduatedfrom MedicalAcademy, Sofia.Specialized inFrance. Nationalsurgery consultant.Named Doctor ofthe Year in 2004.He heads the liver surgery ward at the
Government Hospital.
He participated in the first liver trans-plantation in Bulgaria. He has beenelected MP in the 7th Grand NationalAssembly and in the 40th NationalAssembly. Professor since 1990.Author of 150 research publications.Honorary citizen of Vidin. Married.
Minister of Regional Development
and Public Works
ASSEN GAGAUZOV
Born in Sliven onMay 13, 1953. Hehas a degree inaccounting andcontrol. He hasbeen a deputymayor (1995-97)and a mayor(1999-2001) ofSliven. Member ofthe BSP executivebureau. MP in the38th, 39th and 40th National Assembly.Married.
Assen Gagauzov believes that conces-
Tsar lost even the last
shreds of his credibility. The Tsar showed at the
beginning that he is incapable of facing loss, even
when he is replaced in power by a popular vote. He
even joined forces with an anti-Semite like Volen
Siderov in order to obstruct Stanishev,". Der Standard
commented.
"The Socialist, the Tsarist and the Turks' parties rec-
onciled as any new elections would bring new votes
only to "Ataka." Now, the new prime minister will have
to prove that he is capable of leading the country into
the EU on January 1, 2007. The decision to delay
accession would depend on whether the judicial
reform will be completed by September and on the
assessment that the European Commission is expect-
ed to make on Bulgaria's progress in October", the
Austrian daily wrote. Der Standard concludes that the
large coalition may impose reforms, but it is unlikely
that Stanishev and Saxe-Coburg-Gotha will be able to
work wisely together.
Socialism ascended to Bulgaria's throne: Sergey
Stanishev will play the king while Simeon Saxe-
Coburg-Gotha will wield the actual power, wrote
Russian newspaper Komersant in a commentary on
the change of power in Bulgaria. The BSP was joined
in the government Continued on page 14
Continued from page 10
credit rating agency announced that it has moved Bulgariafrom BBB- to BBB rating based on the country's ability to ser-vice a foreign-currency debt, and from BBB to BBB+ for debtsin Leva. A ВВВ+ rating is the last step before the most presti-gious A-rating group, reserved for the most liquid economies.
"Our motives to upgrade Bulgaria's credit rating are the strict fis-cal policies and the falling sovereign debt, the large influx of directforeign investments as well as the rapid and sustainable econom-ic growth. These motives were supported by the good perspec-tives for a continuity in the economic policy of the government,which was formed as a result of the parliamentary elections held
last June," said Nick Isinger, FITCH analyst for Bulgaria.
2005 is expected to become the second year in a row, whichwill be completed with a budget surplus (of more than 1 percent of the GDP), as the government has been saving someof the amounts above the target budget revenues. The fiscalreserve allowed the cabinet to buy back all Brady bonds, thusreducing the consolidated state budget to about 30 per centof the GDP. However, the current account deficit persists asthe weak point of Bulgaria's otherwise strong fiscal positionand underlines the necessity to support domestic savings andto cool down the economy, FITCH's analysis stated.
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sion is a method that should be usedfor motorways, as it will free financialresource for other roads. It can beapplied in the case of the Hemus andMaritsa motorways. Immediately aftertaking office as minister he announcedhe would commission an independentaudit company to review the contractfor the Trakia motorway concession,which was given to a Bulgarian-Portuguese consortium. The contractitself cannot be executed at present,as it has been blocked by the prose-cution.
Minister of Environment and Waters
DJEVDET CHAKAROV
Born in Assenov-grad in 1960. Hestudied Medicineand specializesurgery. Chiefassistant at PlovdivMedical Institute.MP in the 39th and40th NationalAssembly. In theMovement forRights and Freedoms, he is in charge
of international contacts. SpeaksEnglish and Russian.
Minister of Agriculture and Forests
NIHAT KABIL
Born in the villageof Podayva, Isperihmunicipality, in1962. He graduat-ed from HigherA g r i c u l t u r a lInstitute. He is aspecialist in horti-culture and fodderproduction. He hasbeen manager ofprivate grain processing and canningenterprises. In August 2001 hebecame deputy minister and inFebruary 2005 minister of agriculture.Speaks Russian. Married, with onechild.
Minister of Labor and Social Policy
EMILIA MASLAROVA
Former social minister in Lukanov'ssecond cabinet and in Dimitar Popov'scoalition cabinet (1990-91), she has
been deputy chairof the left-wingp a r l i a m e n t a r ygroup in the 40thNational Assembly.Born in the townof Yakoruda onJuly 3, 1949, shehas a degree ineconomics andhas done research
work. In 1992 she headed theDemocratic Union of Women and in1995, during Videnov's government,she headed the Foreign Aid Agency.She has been elected as MP threetimes since 1997.
Minister of European Integration
MEGLENA
KUNEVA
Born in Sofia onJune 22, 1957,she is married toAndrey Pramov, afinancier believedto be close to theLeft. Her sister-in-law is Ulyana
Vesselin Bliznakov from National Movement Simeon II (left) invites representatives from Bulgarian Socialist Partie and Movement for Rights and Freedoms to the for
the new government negotiations.
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The three parties, forming the new coalition government, sharea common outlook to the need to maintain a reasonable fiscalpolicy, to preserve the restrictions imposed by the IMF, and tocomplete the reforms, which are necessary to guaranteeBulgaria's accession to the EU, the rating agency wrote. Itsexperts expect that Bulgaria will become a member of UnitedEurope in 2007, despite some deficiencies in the process ofjudicial reform and regardless of the hesitance within theEuropean Union. ■
Pramova, general director of theBulgarian National Television.
She graduated from the law depart-ment of Sofia University, where sheobtained a Ph.D. in environmental law.As senior legal adviser at the Councilof Ministers in 1990-2001, Kuneva tookpart in the drafting of a series ofBulgarian laws in the field of environ-ment, access to information and judi-cial system. She specialized inGeorgetown University in Washington,D.C., (1995 and 1999-2000); humanrights in Turku, Finland (1993); envi-ronmental law in Oxford Center (1996).
Her good communication with themedia is due to her journalistic expe-rience: between January 1987 andApril 1990 she was the editor and hostof a Bulgarian National Radio program.She is the author of a documentaryscreenplay, "Stories about Murders,"directed by Iglika Trifonova ("Letters toAmerica"), which won the big GoldenRose award at the festival of Bulgarian
cinema in Varna. She speaks Englishand Russian.
Minister of State Administration and
Administrative Reform
NIKOLAY VASSILEV
He is again theyoungest memberof the cabinet.Born on Nov. 28,1969, he finishedFirst LanguageSchool in Varna.He studied inBudapest (graduat-ed from Universityof Economic
Sciences in 1994); New York (a bach-elor's degree in business administra-tion and finance and economics fromState University of New York - Oswegoin 1995); in Tokyo (specialized tax pol-icy and finance in Keio University in1996-1997); and again in the UnitedStates in 1997, where he obtained amaster's degree in international eco-
nomics and finance from BrandeisUniversity.
He is fluent in Russian, Hungarian andEnglish and also speaks German,French and Japanese. He joined Saxe-Coburg-Gotha's cabinet in 2001 asone of the so-called yuppies, who hadworked for London banks and partici-pated in the drafting of SNM's eco-nomic program.
Unlike his colleague Milen Velchev,who enjoyed high ratings and relativemedia comfort, Vassilev was often crit-icized by the media, mainly because ofhis choice of friends for key officesand for the failed privatization ofBulgartabac.
Although the government reshuffles in2003 sent him from the Ministry ofEconomy into the Ministry of Transportand Communications, he remainedone of Saxe-Coburg-Gotha's vice pre-miers. He headed the commission incharge of flood relief.
coalition by the NMSII and
by the MRF as representative of the Muslim minori-
ty. In practical terms this development ended the dis-
putes on the structure of the cabinet, which had the
potential to delay Bulgaria's accession to the EU, the
newspaper wrote.
Analysts see as the main reason for the extended dis-
pute on the structure of the Bulgarian cabinet in the
reluctance to leave the position of power, displayed
by the former tsar. Despite the election defeat of the
NMSII, the ex-monarch aimed at a second prime min-
ister's mandate, and even proposed a "compromise"
during the negotiations - namely to rule the country
during the first two years of the mandate of the new
parliament, and to step down in favor of Stanishev
during the second two years. Thus, Saxe-Coburg-
Gotha aimed at assuring for himself the role of the
major political figure that has brought about his
country's accession to the European Union,
Komersant wrote.
Former Minister of Labor and Social Policy Hristina Hristova (right) and her
successor at the position Emilia Maslarova in front ot the government building.
Continued from page 12
- Mr. Tabakov, the new cabinet is already a reality. What
do you think will be the challenges the new incumbents
will have to face?
- Both the cabinet and the National Assembly will have toadopt, very soon, all the mandatory regulatory instrumentsand to initiate the measures required to implement the rele-vant conditions, in order to assure that Bulgaria complieswith the requirements of the European Union for an acces-sion in 2007. This will be the major challenge for the newgovernment and for the new parliamentary majority.Speaking in economic terms, regardless of the promisesmade by the political factions during their election cam-paigns, the cabinet will have to instill a prudent financial pol-icy. There would be virtually no freedom for maneuvers andfor large-scale social projects. The major challenge will beto boost economic performance and achieve high growthrate levels. Most of the parties promised a growth rate of 6-8 percent. These are basically attainable growth rate levels,provided, of course, that Bulgaria's economy receives rele-vant incentives.
- What do you mean by "relevant incentives"?
- The right direction would be to persist in reducing taxes.The corporate tax in Bulgaria, for instance, must be broughtto 10 percent. It is necessary to introduce a flat tax rate asquickly as possible. The redistribution of funds through thebudget must also be reduced to a level of 30-35 percent.The relevant incentives include also a genuine reform ofadministration, not by simply cutting jobs but by analyzingthe functions of each unit, and whenever feasible even pro-ceed to increase the number of administrative personnel. Ifthe analysis reveals that the job could be done by fewerpeople, then the administration should be trimmed. Besides,the process of introducing transparent rules for state pro-curement contracts and in privatization must continue, andprivate operators must be admitted to the existing state-owned companies like the Bulgarian State Railways and theairports.
- One of the major challenges for the new cabinet will be
to attract a substantial number of foreign investors, with
the priority placed on "green-field" investments. What are
the perspectives in this sphere?
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BEF to government: Support business, finish judicial reform, keep tight purseGeorgi Tabakov, chairman of the
Bulgarian Economic Forum, says there
is virtually no freedom for maneuvers
and large-scale social projects. Yet the
transport infrastructure needs an
upgrade - immediately.
Georgi Tabakov was born on Aug. 4, 1968, in Sofia. Hegraduated in Moscow as a specialist in international eco-nomic relations in 1994.
His professional career started with the creation of anadvertising house. Between 1997 and 1999 he climbed vir-tually all the steps of the expert hierarchy of the Ministryof Trade and Tourism, and served as deputy minister oftrade from July 1998 to December 1999. Tabakov wasamong the representatives of Bulgaria at the talks for theestablishment of the Stability Pact. He was also an activeparticipant in the Southeast Europe Investment Charter ofthe Organization for Economic Cooperation andDevelopment. Tabakov took over the Foreign InvestmentsAgency (FIA) in 2000 and remained at this post until 2001.After leaving FIA, Tabakov was elected as the chairmanof the Bulgarian Economic Forum (BEF). BEF, still head-ed by Tabakov, organizes the annual Southeast EuropeEconomic Forum which emerged as one of the high-pro-file economic events in the region.
Tabakov was appointed in 2005 to the Board of Directorsof Ecobulpack - an organization engaged in packagingwaste.
Married, with one child. Speaks English, French andRussian.
Marina Tsvetkova
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- The major efforts of the new government must be dedi-cated to attracting companies, ready to create new enter-prises. The cabinet should rely to a much lesser extend onforeign investors entering the market through privatizationand concession schemes. It will have to do as much as pos-sible for the establishment of industrial zones in Bulgaria, sothat these industrial zones could start as soon as possibleto attract foreign investors.
Stringent measures must be initiated against the "adminis-trative chaos," as I would call it, in the various registers, andmostly against the duplication of one and the same set ofdata at various places. A unified administrative system mustbe created, which would allow the business to receive in anexpress manner information about land lots, about their cur-rent status, and of course - when speaking about ownershipand the protection of the right to private ownership - I wouldlike to get to the issue, with which I started: namely that themajor challenge for the new government will be to place thejudiciary system on an entirely new track, so that it wouldbe modern and capable of providing express services tobusiness and to protect at least the right to private owner-ship.
And last but not least, the system of education will have tobe reformed as well. I do not mean only changes in the sys-tem; I mean a comprehensive, modern restructuring of thesystem of education, so that it would be capable of match-ing modern requirements. Bulgaria's system of educationmust generate professionals, who are needed by its econo-my, and that is a factor of a paramount importance.Currently, there is a gap between the system of education,between its final product and the demand on the part of theBulgarian businesses.
- When speaking about challenges, we should look at
things within a somewhat larger scale. Which are, accord-
ing to you, the major challenges to the economic coop-
eration between the states in Southeastern Europe?
- Infrastructure is one of the major challenges. LeadingEuropean institutions like the European Commission, theEuropean Bank for Reconstruction and Development, aswell as international donors like the World Bank, often raisethe issue whether a new infrastructure is really necessary,or it would be enough to upgrade the existing infrastructure.Very often these institutions motivate their position with thefact that such an infrastructure would not be capable ofreturning the investments, that the commercial flows arelow, or that traffic is low, if we speak about road infrastruc-ture, and about the necessity to construct expensive facili-ties. These disputes seem to me superfluous, like the-hen-or-the-egg question. Yes, the traffic is low, because theinfrastructure is in a poor state. Let us take Turkey as anexample - it redirected the flow of its international trucks inthe early 1990s, both because of the conflict in Yugoslaviaand because of the poor state of the infrastructure inSoutheast Europe. At that time, the states in SoutheastEurope started suffering from deficiency of funds and werenot capable of investing sufficiently in the maintenance oftheir infrastructure. Turkey redirected almost 60 percent ofits truck from the road network in Southeast Europe to sev-
eral ferryboat lines, opened between Turkey and Italy andother EU states. This is an example of how poor infra-structure has affected traffic. Of course, in this case thecompetitiveness of the various sea and land routes is themost important factor, but that is within the nature of mod-ern economy. The business must always have more optionsto choose from.
- Will the countries in the region manage to preserve the
rate of development of their economies?
The business to the new governmentIn a letter to Prime Minister Sergey Stanishev, theBulgarian Industrial Business Association (BIBA) asked thenew government to take radical measures to encourageinvestment, export and technological development. Thebusiness organization, which unites 260 companies, pro-poses the following concrete reforms:
● Profit tax exemption and shorter VAT-refunding terms forexport-oriented enterprises;
● Tax incentives for investment in human capital;
● Encouraging innovations and restoring the link betweeneducation and research;
● Measures to protect local production, especially in thefield of public contracts;
● Tax relief for companies working to achieve theEuropean standards and requirements for safe laborconditions.
Even more radical measures are proposed by the head ofthe Bulgarian Industrial Association (BIA), Bozhidar Danev.The employers' organization insists that all companiesshould be registered under the VAT Act and the term forVAT reimbursement should be cut from 30 to 15 days.Besides, the practice of prosecuting law-abiding taxpayersfor breaches committed by other payers along the chainshould be terminated immediately.
The first thing the state should do is restore the flood-damaged infrastructure, because the business simply can-not operate, Danev said. Due to destroyed railway con-nections Bulgaria's metallurgical giant Kremikovtsi is oper-ating at reduced capacity. Huge losses are being sufferedby Metalsnab Holding and other enterprises. BIBA and BIAinsist on establishing a good dialogue with the governmentand on urgent adoption of the laws related to Bulgaria'sEuropean Union membership.
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- These economies demonstrate a fairly good performance- the GDP growth rate in most of the Southeast Europe(SEE) states is at a stable 5-6 per cent level. This growthrate must be preserved and a sustainable economic growthmust be established based on modern concepts of manag-ing economies. According to me, one of the accents for theSEE businesses is the introduction of the good corporatepractices and the good corporate citizenship practices, sothat business would take a better care of environment andhuman resources development. There is a lot to develop inthis aspect in the SEE region, but these are efforts that mustbe initiated jointly by all players - namely by the govern-ments, the businesses, the business associations and tradeunions. I must say that accession to the EU is also amongthe major challenges. SEE states would establish a commonmarket and common rules, and will start applying the prin-ciples of free movement of people, products and capital onlywithin the EU framework.
- You mean that Southeast Europe will emerge as a com-
mon marketplace only after the last of the SEE states
becomes an EU member?
- Yes, but this will not happen in the near future. Still this isan objective each and every country must aim for and helpits neighbours to attain as well. We should not forget ofcourse that the countries in the region must be integratedinto Europe's economy but they must also find their place inthe world economy. The processes of globalization forcestates to think about the fact that they must compete on aglobal market. When you try to attract investment to a coun-try like Bulgaria for instance, it must be clear that you com-pete for each and every investment not only with the imme-diate neighbours but also with states in Asia, in LatinAmerica and of course with the new EU member states. Oneshould always bear in mind that a giant like China is emerg-ing in Asia and many of the traditional sectors in the EUmember states and in the SEE region will start experiencingthe strong competition of Chinese products, and that isanother major challenge.
- You are the organizers of the already traditional
Southeast Europe Economic Forum. Can you state that
the economic cooperation between the counties in the
region has made progress over the last seven years since
the first issue of the forum?
- The Southeast Europe Economic Forum (SEEF) is just acomponent of a number of initiatives, which were supportedby the international community and by the countries in theregion in the aftermath of the Kosovo conflict. These initia-tives are still aimed at developing economic cooperationthroughout the SEE region. A single event could hardlyemerge as the factor, exerting a positive influence on thedevelopment of the relations between the states. However,we have observed over the last seven years and especiallyduring the last year or two a major increase of foreigninvestments in all countries in the region. This indicates thatthese states have managed to establish the region as aninvestment destination and as a good platform and as a mar-ket with 60 million consumers that could be of interest, dueto its size, to any company. The approach, which was select-
ed, namely that the states represent themselves as compo-nents of a single market, was the proper one, according tome, and is already generating results. The fact that Bulgariaand Romania are already very close to becoming EU mem-bers is a huge booster for attracting foreign investments tothe region. Most of the other states in the region havesigned free-trade agreements, various in form but similar inobjective, with the EU, and each of these states has its ownEuropean track it is following.
At the same time, regional business is also demonstrating anintense interest in the region itself, and there are alreadycompanies from the region investing in their neighbours. Thisis the case with Bulgaria as well - there are quite a fewBulgarian companies that are investing in Albania, Greece,Macedonia, and Serbia. Statistical data indicate that tradeflows are intensifying as well. As I already mentioned, theregion needs, in order to preserve the current positive ten-dency, a qualitatively new infrastructure that would first of allconnect physically the economies of the countries in theregion. The region needs more freeways. The energy sectorneeds an infrastructure, in order to implement the concept ofa unified SEE energy market, which has been in the focusof the Stability Pact efforts since 2000. All these issues havealways been on the agenda of all SEEF discussions, and Ido think that the Forum has contributed to the developmentof the economic relations between the states.
- This year the SEEF will focus on "Developing knowledge
economy and supporting the competitiveness of small
and medium businesses". What was the reason to direct
the attention to these issues?
- The importance of these two issues for Bulgaria's econo-my and for the economies of the SEE states was the mainreason to identify them as the focus of the 2005 Forum.Most of the countries in the region have already completedthe first stage of the restructuring of their economies - thetransition from a state-owned to market economy - and havecompleted a series of difficult reforms in order to be able toplace their economies on market rails. During this period, itseemed that the links between economy and business, andthe educational establishments and in general - the institu-tions established and responsible for developing knowledge,were either abandoned, or completely disrupted. Some ofthe relations within this scope will have to be created anew,as the relations within the communities are already pro-foundly different. These relations stem out of the changes inownership as well as out of the rapid advance of new tech-nologies in everyday life.
We have selected the issue of small and medium enterprisesbecause these businesses must emerge as the backbone ofSEE economies. The small and medium businesses are themost flexible segment that can react quickly to any marketchanges and generate the major portion of the GDP and setits growth rate. The two groups of issues are closely interre-lated as small and medium enterprises could prosper and beprofitable in the contemporary environment only in case theyintroduce new technologies, if they make the best use ofknowledge products, and if they pay attention to the qualifica-tion, re-qualification and training of their personnel. ■
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- The previous government and your predecessor in partic-
ular paid special attention to Bulgarian-U.S. relations. What
are the views of the new government on this issue?
- In any case we recognize that a lot was done by the previ-ous government for the Bulgarian-U.S. relations. The new cab-inet will try to build on what has been achieved so far. I hopeto leave to my successor at the Foreign Ministry still betterrelations with the United States.
- What are the items on your agenda?
- We rely very much on an active political dialogue. I am veryhappy that Bulgaria's president will make an official visit toWashington in October. I believe this is a crucial visit, not onlybecause it sends an important message but also because alot of essential issues could be discussed.
As far as our economic relations are concerned, there isalways something to desire and we never stop trying toencourage their further development. We have many good U.S.investments in Bulgaria, our bilateral turnover is not bad, butinvestments and turnover are not all we can dream of.
The ties in the field of culture and education are also veryimportant.
Besides these standard relations with the United States, thereare a few more specific problems on which we have beenworking for years and which are part of the basis of our goodrelations. This is our partnership in Iraq and Afghanistan, ourmilitary cooperation in general, the organization of operationsin different regions, including the Balkans.
As a whole such type of partnership makes the relationsbetween the two countries a priority. To Bulgaria, the rela-tions with the United States are really one of the key prior-ities.
- Bulgaria's participation in the anti-terrorism coalition con-
tributed a lot to the strengthening of the bilateral relations.
What commitments is Bulgaria ready to take from now on?
- I think that Bulgaria has done a lot for the stabilization ofIraq and paid the human and financial costs for that. It is notright, it is not even normal for Bulgaria to cancel its assis-tance for the democratic processes in Iraq. There is a politi-cal decision, which was taken by the previous parliament andhas been confirmed by the now governing coalition, thatBulgaria will withdraw its troops form Iraq. However, we willkeep our commitments concerning the democratization of thatcountry.
- In what form?
Ivaylo Kalfin:
Our Relations With the United States Are a Priorit yBulgaria's new foreign minister
expects American support with the
case of medics held by Libya,
but no preferential treatment
for the repayment of Iraq's debt
Ivaylo Kalfin is a Deputy Prime Minister and Minister of
Foreign. He was born in Sofia in 1964. Kalfin has studied
International Economic Relations in the University of
National and World Economy in Sofia and International
Banking in the Loughborough University. He has special-
ized in Austria and the United States.
A member of the 37th, 38th and 40th National Assemblies.
Kalfin speaks English, French, Spanish and Russian. He
has been teaching finances at the International University,
Sofia. Married, with one daughter.
By Dessislava Stoyanova
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- This is a question we are discussing with out partners, theUnited States among them. In any case our commitments willhave political, economic and military dimensions, inasmuch asone of Bulgaria's options is to take a more active part in thetraining of Iraq's military and police specialists.
- There is not much time until the end of the year. Have the
talks begun already or if they haven't, when are they
expected to start?
- The contingent has a mandate until Oct. 31, 2005. We knowthat the Iraqi constitution may be voted in October and elec-tions are scheduled for December. Of course the withdrawalof the contingent will be coordinated with these key politicalevents, since it has security implications as well. The concretetalks on when and how the troops should be pulled out arerelated to the manner in which Bulgaria will continue its par-ticipation in Iraq. It is obvious that this contingent will be with-drawn, the question is to couple this withdrawal with Bulgaria'sfuture commitments in Iraq. I hope that concrete negotiationson this whole complex of problems will begin shortly. At anexpert level, Bulgaria's stand is nearly ready. Naturally, it hasto receive a political sanction as well.
I think that in the next few weeks we will be ready not only tobegin but to quickly finalize the talks. It is good that there issuch good cooperation and trust between Bulgaria and theUnited States, so I do not expect any problems to arise andobstruct the process.
- An issue that has been pending for quite a long time is
Iraq's debt to Bulgaria. So far Sofia's official position has
always been that Bulgaria would like to receive its loans or
at least the bigger part of them. After visits to the United
States, representatives of the former government and the
parliament often said they expected - or were even confi-
dent - that Bulgaria would receive most of the debt. Do you
find such expectations realistic?
- I do not believe we will enjoy any special status concerningthe repayment of the debt. Rather, our expectations were con-nected with Bulgaria's participation in the restoration of Iraq.We can see this is not happening in the volumes we expect-ed.
As for the debt, I do not imagine how Bulgaria could be placedin some priority position compared to Iraq's other creditors.
- The elections and the change of government in Bulgaria
seem to have sent into the background the negotiations on
the positioning of U.S. bases here. When can we expect
the talks to be finalized?
- I guess these issues will be decided on shortly. In any case,the two countries are expected to hold negotiations soon: atan expert and probably at a political level. The American sidedemonstrated its interest in positioning bases in Bulgaria: notthe type of bases in West and Central Europe but, rather, logis-tical centers. But with respect to the size and number ofprospective bases, the status of the U.S. military and theexploitation of the bases, the U.S. side has prepared twoagreements, which are yet to be discussed.
- In relation to the economic aspect of our relations, dur-
ing his mandate Ambassador James Pardew repeatedly crit-
icized the condition of the Bulgarian judicial system, which
affects the business climate in this country. Will these
problems be overcome in the near future, so that U.S. and
all foreign investors can feel more comfortable here?
- The judicial reform is crucial and I hope that it will be com-pleted soon. However, I do not overestimate the impact of thecondition of justice on investments in Bulgaria.
In the past few years Bulgaria attracted substantial invest-ments. There are some extremely successful U.S. investmentsand I think they are an example for every foreign investor. SoI would not view the two issues as directly related.
The issue about the judicial system and its reform is essentialand it is a priority in Bulgaria. It is clear it affects in some waythe business environment, but I would not say it is the mainreason for insufficient investments.
What is more important is to provide enough information andfind the right formula for seeking more investments or moreinvolvement on the part of U.S. companies in Bulgaria.
It is important to have projects that set an example for goodinvestments. Such is the case with American Standard andwith other U.S. companies. From a U.S. viewpoint, VivaVentures is a very successful investment in telecommunica-tions.
So what we can expect is increasing information. There aremany opportunities in the military sector, the supply of militaryequipment with offset options for investments in civil produc-tion, which are also promising.
It seems to me that there are quite many opportunities forexpansion of U.S. investments. I would not say that the busi-ness environment as it is at present is an obstacle; rather, Ithink it is favorable.
- One of the serious pending issues you will have to tack-
le is the case with the Bulgarian medics in Libya. Would
you rely on the assistance of the U.S.A. to find a favorable
outcome?
- Bulgaria expects assistance from all its international part-ners, including the United States and the European Union. Imust say that so far we have received such assistance. Onany occasion the United States raises the question about ourmedics, and so did Senator Lugar during his recent visit. TheEuropean Union has an action program concerning the medicsand the problems we have there; it is connected with provid-ing humanitarian aid to the children of the affected families.What we expect is that this support and solidarity will contin-ue, both in the framework of the tripartite format of the UnitedStates, the European Union and Bulgaria, and as part of thebilateral relations. We know that now there are quite manyopportunities for renewal of the relations between the UnitedStates and Libya and we hope and rely on our American part-ners that the issue about the Bulgarian medics will be part ofthe rapprochement package. ■
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480, 479, 478... The Bulgarian electronic evroportal.bg is impa-tiently counting down the days until the sacred date ofBulgaria's accession to the EU. Bulgaria's plan is to becomea member of the EU as early as January 1, 2007. But count-down may emerge as still premature. January 1, 2007, is farfrom being the irreversibly set accession date.
Europeans are becoming more and more hesitant whether theywould like to have the poor relatives, Bulgaria and Romania,join their family. The 25-member bloc has sufficientheadaches of its own - with the European constitution, whichis still on a crossroad, the new budget framework until 2013,which is full of unknowns, the huge unemployment in Germanyand the inadmissibly high budget deficits of some of the mem-ber states, the increasing clumsiness of the bureaucracy, whichis assuming monstrous dimensions…
The truth is that if the two Balkan states had the performanceof Slovenia and Estonia - the two best pupils in the class ofthe ten new members, which joined the EU in May 2004, thennow no one would question their chances for joining the Unionon January 1, 2007. However, Bulgaria - which demonstrates apretty good economic performance - is still suffering from itsimage of a poor and corrupted state, where the hands of jus-tice are tied, and the mafia is rampant while the authorities arecounting the bodies lying on the streets. Romania suffers froma similar bias.
An apocalypse?
On this background, the accession of Bulgaria and Romaniaaccording to the schedule seems to be somewhat problematic.
The situation matches a classical paradox: the less a countryneeds the benefits of the EU membership, the easier it is tobecome a member. And vice versa - the hungrier a countriesfor the generous eurofunds, the more reluctant the states, whoare already in the club are, to have this country as a member.
Spain and Portugal were also not welcomed with ovationswhen they joined the EU in 1986. The expectations then werethat the poor relatives from the Mediterranean would bring alot of problems into the European Union. These fears howev-er were strongly exaggerated. "Old Europe" found it difficult toswallow and is still incapable of digesting the largest-scopeexpansion in the EU history, after it accepted in May 2004 itsten new members - eight Central European states, Malta andCyprus.
That is why Brussels demonstrated foresight and built anemergency exit, called protective delay clause. The EU even
announced that the objective is to have Bulgaria and Romaniajoin on January 1, 2007, unless they are still unprepared bythat date, in which case their membership would be post-poned by a year. After the protective clause was announced,some Bulgarian politicians started to comment hysterically theissue with the possible delay of the European membership.They went as far as to describe it as a catastrophe. Whereis the truth?
The missed benefits
If Bulgaria joins the EU on January 1, 2007, its membershipwill bring in some EUR 4 billion from the structural Eurofunds during the first three years. If however the protectiveclause is activated, Bulgaria will be denied access to theseamounts.
Sofia announced mid-June that an accession a year later thanthe schedule will strip this country of close to EUR 1 billion.This is more or less equal to the amount allocated to Bulgariafrom the European funds for 2007. A state must be a memberof the EU in order to utilize these funds.
If however Bulgaria fails to join the European club on sched-ule it will save a one-year membership fee, or some EUR 200million. Thus, the expected loss due to a one-year delay wouldamount to EUR 800 million, which is a tremendous amount fora country like Bulgaria.
Bucharest has also calculated its potential future losses incase the EU barrier remains down until 2008. Brussels will"save" some EUR 2 billion in case Romania's accession isdelayed.
These are, of course highly inaccurate and superficial figures,as they do not account for all effects of membership, andrespectively of the delayed accession.
Even if Bulgaria and Romania fail to avoid a delay, they willnot wind up with no EU financing at all. The EU budget for2007-2013 has already allocated assistance funds for the twostates. However, if the two states are not full members, theywill not be able to utilize these allocations in full. The eventu-al reduction is of course the subject of new talks. In all caseshowever any calculations of "missed profits" now would besenseless and incorrect.
The "white collars" failure
Bulgaria has not managed until now to demonstrate it coulduse up 100% of Europe's generosity. Bulgaria has had access
Will Bulgaria Miss the Eurotrain? According to Sofia, a year's delay would cost EUR 800 million. The protective
clause - a hypothetical barrier to EU membership.
By Yuliana Boncheva
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for years to the so called EU pre-accession funds like PHARE,SAPARD and ISPA. Sofia has at its disposal every year hun-dreds of millions of euro to spend on improving roads, watersupply, the conditions in rural regions, and the environment.Bulgaria has to submit specific projects in order to invest thesefunds. However, Bulgarian bureaucrats are still incapable ofdrafting projects according to European standards.
For this reason, a major portion of the grants provided toBulgaria remain idle in European treasuries. Bulgaria has sofar used a token 32 per cent of the funds released under theISPA program, which is dedicated to financing infrastructureimprovements. This is an exceptionally low rate of utilization,especially for a country that is notorious for its terrible roadsand freeways leading nowhere.
In some cases Bulgaria has even lost irreversibly millions ofeuro because of the lack of quality projects or due to com-promised procedures. There are such precedents within thePHARE program - the amounts that had not been utilized with-in the approved schedule had to be returned to the jointEuropean budget.
There are also other obstacles to utilizing European assistance- suspicions of corruption in the selection of projects and con-tractors. This results in the return of documents for revision, inthe repetition of procedures and even to the annulment of ten-ders, each and all resulting in
major arrears in the utilization
of pre-accession funds
If Bulgaria is incapable of managing these modest amounts, itwill hardly be capable of using the much more abundant struc-tural funds within the EU. That is why experts have been warn-ing that Bulgaria may wind up as a net payer, if it joins the EUin 2007 - like Germany, for instance - as its annual contribu-tion to the European budget will be higher than the amountsof subsidies it will manage to absorb.
It is a well known fact that the farmers and the rural regionsin general are the greatest beneficiaries from the EU. Morethan half of the European budget is spent on them. However,Bulgaria has still not established the agencies, whose job willbe to regulate agrarian markets, devise price interventionstrategies, and distribute the various types of subsidies andassistance funds to farmers. These are structures with thou-sands of employees and numerous branches across the coun-try, all linked to a unified information network. Bulgaria has vir-tually no time left for establishing such agencies there are only15 months left until January 1, 2007.
All annual reports drafted by the European Commission onBulgaria's progress contain the critical remark "lack of admin-istrative capacity and professionalism in utilizing pre-accessionfunds". We shall, undoubtedly, read the same remark in thenew annual report, which will be ready by October.
What about real estate prices?
More and more analysts have been forecasting lately that thepostponement of membership may prove to be fatal for those
investing in real estate in Bulgaria. "Experts" prophecy thatmoving the accession date forward into the future will result ina collapse of real estate prices, which lived through an excep-tional boom over the last several years in Bulgaria.
It is true that Bulgaria's European membership perspectivewhetted the appetites of companies, funds and individualinvestors, and the market recorded a steep increase of prices.The truth however is that investors have opted for Bulgariabecause of its magnificent natural assets, its potential todevelop tourism, and, of course, by the relatively low prices.These advantages of the real estate market in Bulgaria con-tinue to attract capitals, while the membership perspectivesremain the same. Hence, there should be no price collapse.Price will continue to rise - until at least they come close toEU member states levels. The rate of increase may slow down,but this will be an entirely natural development after the bigboom over the last several years.
Both the honey and the sting
It must be perfectly clear that the EU membership will bringnot only benefits but also commitments and responsibilities,which sometimes may even manifest themselves by negatives.For the sake of EU membership, Bulgaria will have to negate161 agreements for trade and economic cooperation. All theseagreements will have to be terminated, renounced or amend-ed, because they do not comply with the European legislationin the sphere of external relations and which Bulgaria will haveto apply from the very first day of its membership.
These are free trade agreements, bilateral trade and econom-ic cooperation agreements, agreements in the sphere of invest-ments, etc.
For instance, Bulgaria has assumed the commitment torenounce or terminate by mutual accord, by the accessiondate at the latest, the free trade agreements it has signed.Currently, Bulgaria has effective agreements of that type withAlbania, Israel, Macedonia, Bosnia and Herzegovina, Serbiaand Montenegro, Turkey, Moldova, and with the EAST memberstates - Switzerland, Lichtenstein, Norway and Iceland. Now,Bulgaria's trade with these countries will have to abide by therelevant agreements in effect in the EU. The termination orrenouncement by mutual accord of 142 agreements is cur-rently being negotiated. Talks will be initiated for the amend-ment of 19 effective agreements. If no agreements is reachedwith the respective parties, the agreements will have to be ter-minated unilaterally.
European membership has its negative features, related tocommon European rules and with the system of sanctions incase of default. For instance, five of the new EU memberstates - Slovakia, Hungary, Poland, the Czech Republic, andSlovenia experienced the sting of the European Commission.The EU Commission threatened to impose fines because ofthe excessive reserves of agricultural products and foodsmaintained by these states. The sanction is far from beingminor - the fines amount to EUR 383 million. Now, the agrari-an ministers of the five states, who were shown the yellow cardbecause of the agrarian surpluses, are appealing the methodsused by Brussels to calculate the amount of food reserves.
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Still, the threat of substantial sanctions remains.
All is well that ends well
Seen from a different perspective, the postponement ofEuropean membership has its positive aspects. It will grantBulgarian businesses more time to prepare for the competitionon the common market. Many companies need the extra timeto introduce European standards, without which they all will bedoomed - they will either be closed down by an administrativeact or will go bankrupt because of poor competitiveness.
Most of the observers are convinced that even if the acces-sion date is postponed, the results will not be fatal. Besides,Brussels, Sofia and Bucharest are pretty well aware that thetwo candidate states are still not fully ready. However, most ofthe members which joined the EU last year were not fully pre-pared for membership as well.
Poland was until the last moment threatened by a possiblepostponement. The Polish Seim adopted on April 26, 2004,barely 4 days before the official EU accession ceremony, anact to amend a whole package of 126 effective legislative acts.Thus, with a single stroke Warsaw completed "at 5 minutes tomidnight" the full legislative task it had to do in order to beapproved as "ready to join the EU".
Attitudes and fallout
According to a recent survey, conducted by Eurobarometer, 50
per cent of the EU citizens support Bulgaria's EU membership.Romania scored a 45 per cent support. The plans to acceptTurkey as member are supported by a mere 35 per cent ofthe EU citizens. Croatia was awarded the highest support rate- its accession to the EU is approved by 52 per cent of theEU citizens. Albania has received the lowest support - 36 percent. The survey indicates that support for a future expansionof the EU is falling. It has dropped by three percentage points,to 50 per cent, since the previous survey of Eurobarometer.
Attitudes in EU are important, but it is equally important whatOld Europe will gain by postponing Bulgaria and Romania. It isstill unclear whether the delay will serve as a boost to bothstates, or it will slow them down and cause political tremors.
Postponing Bulgaria's accession to the European Union willserve as a serious psychological blow, which will be met as aninsult and will cause insecurity, said political analyst IvanKrastev, Head of the Center for Liberal Strategies in Sofia.Postponement will totally change the positive attitude amongBulgarians and will stir anti-Europe sentiments. The sameapplies to Romania. This is by no means the objective that theEU has in mind, Krastev said.
Most of the political observers are convinced that the failureof Bulgaria to join the EU on January 1, 2007 would result ina government crisis. The incumbent tripartite coalition, whicheven without additional problems was difficult to forge, wasfinally sealed after two unsuccessful attempts for the sake ofBulgaria's EU membership. It was not a chance decision to
Newly elected Bulgarian Prime Minister Sergei Stanishev (left) talks with European Commission (EC) President Jose Manuel Barroso at the EC headquarters in
Brussels August 29, 2005.
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name it "Coalition 2007". It will easily collapse in case it failsto achieve its Objective No. 1 - not only because Sofia will bedenied recognition and will not receive its EU membershipcard. Delay will mean that Bulgaria really lags behind in majorspheres and that the ruling majority has failed to warrant andimplement the required changes.
A traffic light out of order
The new Bulgarian government looks like a traffic light out oforder, which blinks simultaneously in red, yellow and green.Prime Minister Sergei Stanishev announced after his firstseries of talks in Brussels that "Bulgaria is threatened tobecome the victim of disagreements within the EuropeanUnion", although it spares no effort to deliver on its commit-ments.
The new foreign minister, Ivailo Kalfin, started his mandate withreservations, namely that "there is already a major negativedelay, which may not be easily compensated, and we are moreand more obviously moving towards a postponement of mem-bership". Kalfin stressed that the European Commission wouldhardly state in its October report that Bulgaria may join onJanuary 1, 2007. According to him, Bulgaria will hear its ver-dict next February at the earliest, when a Community summitis scheduled to take place. Meglena Kuneva, who was incharge of European issues in the former cabinet and retainedthe same portfolio in the incumbent government, softened thenegative forecasts. Bulgaria will face no genuine threat of hav-ing its EU membership postponed in case this country deliv-ers on its commitments, Minister Kuneva stressed. She criti-cized indirectly the pessimism of Prime Minister Stanishev,stating that "any scenarios about somebody in EU refusing tosee us in the Union, would not only deliver false signal abroadbut will also erode our own self-confidence".
The Great Barrier Reef, or the genuine
threat of the protective clause
The so called "protective delay clause" is like a Great barrierReef on the way of Bulgaria and Romania towards EUAccession.
The European Council insisted in December 2004 to have thisprovision included in the accession agreements of the twoBalkan states. According to this provision, if the continuousmonitoring by the European Commission indicates that there isa lag in the adoption and the application of the EU legislation,or that there is a serious risk that the country would not beprepared for membership in a number of important spheres byJanuary 1, 2007, the European Council may decide, upon arecommendation by the Commission, to move the accessiondate for the respective country back with one year, to January1, 2008.
The decision to delay Bulgaria's accession must be taken bythe Council by consensus. However, a qualified majority wouldbe required to take the decision to erect the barrier toRomania. Bulgaria has a definite advantage to Romania in thisaspect.
Actually, the consensus requirement turns the delay of
Bulgaria's membership into a hypothesis, rather than into agenuine possibility. It is hard to believe, for instance, thatSlovakia, which has even ratified the accession agreementwith Bulgaria already, will change dramatically its attitude afterseveral months and will support the application of the protec-tive clause. Greece and Poland are also firm in their supportfor Bulgaria. They promised recently to have the agreementratified before the end of 2005.
Quite a few Western politicians exploit the enlargement issuewith the objective to win prominence and the sympathies of thevoters. Others blow up the negatives, related to expansion, inorder to divert the attention from other problems within theirown countries. The issue of closing the EU within its currentborders is a favourite for German politicians, and this is easilyunderstandable. Berlin is facing an exceptionally high unem-ployment rate and budget deficit, which defy all European stan-dards. In an election environment, this issue may boost tofalsetto the sharpness of political speechmakers. The issue ofthe "unwanted aliens", who will take the bread out of our hands,will eat up the pension funds and will import crime, is very suit-able for use in election campaigns, and politicians never missthe chance to obtain dividends from such an opportunity.
However, almost all critics and opponents to expansion areforced at the end to admit that they are speaking simply inprinciple and about future candidates to come, and not aboutBulgaria and Romania. Let us not forget that the two states aresimply the second group of the fifth wave of expansion of theEU, launched in May 2004.
Pedal to the metal
Now, the two candidate states must concentrate on their owntasks: to continue with the reforms. Bulgaria especially willhave to demonstrate that it has the political will to change thepre-trial phase of the judiciary procedures, to complete theadministrative reform and to eliminate corruption.
The new cabinet has promised that all important codes, relat-ed to EU membership, will be approved by the NationalAssembly by the end of September.
Brussels will strictly monitor Bulgaria in order to establishwhether this country is dealing with the promised reforms andnot whether it is moving to the left or to the right. Continuingthe reforms is a matter of political will, and not of political ori-entation. Besides, it is not so important to have the parliamentoperating as a law factory. It is much more important to adoptefficient rules and to have the people in place to apply them.
EU representatives have already hinted that the decisionwhether the accession date will be postponed or that theapproved time schedule should be observed will not be takenin October or November, when the annual reports on Bulgariaand Romania will be publicized. The decisions will be made atthe February 2006 summit. Thus, Brussels will keep its lever-age and will continue to spur the candidates to race towardsimplementing their commitments. Otherwise, the incumbents inSofia and Bucharest might relax and start thinking that theyhave the EU membership secured, and consequently releasethe gas pedal of the reform vehicles. ■
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"Dad, when was that?" My son is askingabout the Ice Age. Before opening theencyclopedia I try to make a somberjoke: "A long time ago, but it will happenagain. That is why you should pay atten-tion to that movie."
Ice Age is my son's favorite movie. Yousure know it - one of the latest anima-tions combining hand-drawn images withsuperb digital wizardry; it is an easy-going tale about the Big Ice Age thou-sands of years ago, full of insiders' jokestold by some very skillful actors.
Children however are not into refinedhumor, and my son, who until a whileago was laughing at the mammoth andthe squirrel, now looks at this piece ofanimation art as a survival manual.Maybe I should not have joked like that?
"Thy wish was the father of thy thought,"said Schiller, but it seems that it cameup exactly the reverse from me. I havebeen thinking lately that one of the fewsensible planetary political causes it tomake something, so that our childrenwould never turn into amphibians.
It is strange, you would say,
but then why did green
parties disappear?
Global warming is banging loudly on ourheads, and the Katrina hurricane hasflooded the United States like no otherhurricane has ever done; half of Europeis drowned in water, Bulgaria fails to pullout of the mud, while the Green move-ment, which wielded a lot of power in the1980s, has simply vanished.
Do you remember the green wave inworld politics? France, Germany, Austria,the Scandinavian countries, evenAmerica. The young Joschka Fischer,who had just stopped throwing stones atthe police, switched his protest tonuclear energy... The veterans of 1968,who suddenly found a new cause, whichdissolved even the last of their utopias -
leftist politics, the struggle for peace,and the anti-Americanism… GreenamCommon, Greenpeace, Jacques-YvesCousteau, Daniel Cohn-Bendit - theywere all consumed by the new revolutionthat had suddenly erupted. The youthleaders decided to bet on green.
Even Bulgaria's changes started 'in thegreen' in 1989. The ecological forum inSofia served as a booster for dissidents;opposition to Rila-Mesta became thefirst democratic cause, while many ofthe 'founding fathers' of the transitionsigned up with Ecoglasnost and with theGreen Party that came shortly after.
What about today? Greenpeace is but ashadow of its own previous self, and ismore and more bending towards sectar-ianism, the luxuriant green partiesimploded upon themselves, and thegreen spectrum of European parliaments
occupies the narrowest, almost invisibleband. Only Joschka Fischer is stillproudly standing at the Green's helm.Maybe because of his surprisingly suc-cessful participation in the German polit-ical project, which he pulled out from thetrail of extremism and steered into thecalm port of political pragmatism. It isimportant that the cat catches mice -and forget the cat's color, to paraphraseold Deng's saying.
There is a genuine paradox behind thesedevelopments.
The Green idea turned out
to be exceptionally
successful
and that led to its demise. It was so suc-cessful that all other political parties -leftist, rightist, and center - went green,too. Clandestinely and slowly, these par-
Greener Than Green?
By Boyko Vassilev
Since the 1980s, politicians around the world have embraced - and asphyxiated
- 'green' issues. It is time to reconsider the lip service we pay to environmental
concerns - or risk entering another Ice Age
The biggest highway crossroad on the Balkan peninsula in Veliko Turnovo looks like a bridge over a river
after f lood in August. Heavy f loods affected 70% of Bulgarian territory last month. Regions of Sofia,
Plovdiv, Montana and Smolyan were under water. Nearly a hundred kilometers of roads and railroads
were destroyed by the water.
ties embraced the green ideas andtransformed the preservation of the envi-ronment into the sacred cow of Westerndemocracy. The Green revolutionaries -those authentic bearers of the idea -realizing all of a sudden that they havebeen totally disarmed, and had to pullout whatever they have left, mostly left-ist ideas and the inviting winks to theEast. Then, 1989 came and delivered thefatal blow. Within a year, the boys of1968-1980 grew old.
This abrupt reversal was most stronglyfelt in Bulgaria; it was felt so strongly thatit even brought about a strange fallout.Excluding those Ecoglasnost members,who, logically, joined the Socialists, theGreen lines sprouted the most adamantsupporters of political liberalism, of mod-ernism, of the West and of America -Solomon Passi, Ivan Kostov, Prof.Lyubomir Ivanov, Krassen Stanchev, toname but a few. A ConservativeEcological Party was established inBulgaria, which turned into the favoriteparadox of political analysts and a gen-uine puzzle for every OrthodoxEurogreen. The developments inBulgaria only reflected a world-wide phe-
nomenon - after 1989, the Green Partyceased to be the exclusive dominion ofthe Green.
Well, this could be interpreted as some-thing like a victory, albeit a Pyrrhic one.
The issues of climate
change and nature
conservancy were not
resolved,
just on the contrary. Deeply concernedabout the dwindling natural resourcesand man-made changes in the planet'sequilibrium, left-wing and right-wing gov-ernments in Latin America continue todestroy, with all due concern, theAmazon jungle. World oil consumptioncontinues to rise, and even the vertigi-nous ascend of prices (which tripledsince Sep. 11, 2001) is not sufficient toclose the tap and failed to shake globaleconomy. The traditionally thirsty forcheap gasoline America is ready toaccept even higher prices. Then who willmanage to change the ways of a hugecountry made to suit the automobile?China is becoming more and more thirstyfor fuels, too, and many skeptics are
A man from Smolyan watches his f looded street.
The Government has approved 4271 households
to receive f lood relief. In total, 1.5 million leva
have been allocated so far for basic necessities.
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already waiting for the day when theozone hole will be totally rupturedbecause of the Chinese freon-ladenrefrigerators.
Bulgaria opted against staying behindand gave birth to the most despicablemafia, which has been mercilessly fellingfor 15 years the national forests, one ofour precious few natural resources. Theresults of this egoistic and suicidal strat-egy became apparent in July and August2005 - the rivers went over their defor-ested banks and caused loss of life andproperty on an immense scale.
And here comes the second, this timenegative, consequence of the decline ofGreen movements. The general "green-ing" of politics submerged the green idea
under bureaucracy and formalism,stripped it of its global appeal, and hadits will and imagination castrated. Yes,ecology became the sacred cow ofWestern democracy, but
sacred cows could
never bring inspiration
to dreamers
Moral exorcism and extreme leftistutopia can never exert influence on mar-kets and on their "naughty offspring," theeconomic egotism. The world, unfortu-nately, has only one of the most unreli-able tools - the Kyoto Protocol - at itsdisposal to deal with the issue. And theproblem is not reduced simply to the factthat the United States and some otherstates remain skeptical and refuse to
sign this document. The Protocol byitself is a typical bureaucratic labyrinthwithin the global "concressocracy."Bulgaria, for instance, is selling to otherstates its quota of polluted air simplybecause it does not have anything topollute it with. The pieces of air are cutas if from a pie and are shuffled withina virtual world, so that developed indus-tries could go on in their habitual ways.Where is the cause? Where is the inspi-ration? There is no logic, even of the"formal" variety.
It has become obvious lately that thismay be the end of the road, after all.Eastern Germany was flooded in 2002exactly as deep as it was necessary toprop up the sensational election victoryof Chancellor Schroeder. Today, howev-er, Germany (together with other statesin Central Europe) is again under waterand the Germans have started to realizethat the issue is not limited to generouscompensations. Tomorrow, the floods willhappen without elections pending.
Every August the news broadcasts havebeen bringing us traditionally the name ofyet another Caribbean hurricane slam-ming into the U.S. mainland. In 2005,however, Katrina became the mother ofall hurricanes, destroying New Orleansand the coasts of Alabama andMississippi in a disaster of Biblical pro-portions. And I will bet that at the next G-8 summit it will be President Bush (andnot Prime Minister Blair, as inGleneagles) who will raise the issue ofglobal warming. The June floods inBulgaria failed to displace the parliamen-tary elections from the front pages. Thencame July and August, and water startedpouring out of every television screen inBulgaria. It takes time for some issues toget hold of public's imagination - but thenthey last for a while.
A new green wave is coming - not a par-tisan wave, but a global wave. A wave,which is simultaneously pragmatic andidealistic. The knife has hit the bone. Itis necessary to have your own child tostart thinking about the global warming?
"Dad, is there really an Ice Age 2?" myson asked me. "I read somewhere thatthey are thinking about it and it maycome up in 2006," I replied, seeminglyabout the animation feature, but thinkingabout something completely different. Isit coming? ■
Thousands of houses in New Orleans, Louisiana remain under water one week after Hurricane Katrina
went through Louisiana, Mississippi, and Alabama September 5, 2005. The U.S. Army Corps of
Engineers has closed a major gap in the New Orleans levees battered by Hurricane Katrina and is
pumping water from the f looded city, an agency spokesman said on Monday. The Corps has estimated
it will take as long as 80 days to get rid of the f loodwaters.
REU
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Although the leading blue chip indexSOFIX has slightly improved after thesetup of the new 3-party government,the low trade volumes and the lack ofsteep one-off hikes are showing thatinvestors in corporate shares are notquite enthusiastic about the latest politi-cal developments. It is probably tooearly to assess investment sentimentsdue to the usual dormant trade inAugust, but the first indications suggestthat the new government has to workharder for winning business confidence.On the other hand, the market hasreacted more positively to the failed vot-ing for the shaky minority governmentproposed by the left-wing BSP and theethnic MRF in late July. This reaction ishowever consistent with many estimatesthat the worst-case political scenariohas been avoided. Should the new rul-ing partners succeed to demonstrate
better team spirits in the forthcomingweeks, the stock market will have agood growth potential given that SOFIXis still below the peak reached inFebruary this year. Higher trade volumesand steeper share price hikes could beexpected in the fall this year when sea-sonally boosted Q3 financials of BlackSea resorts as well as more evident
progress in the legislative programme formeeting EU accession criteria couldgear up bullish sentiments.
Following an all-time high of 932pts inlate February, the leading stock priceindex SOFIX has expectedly fallen after-wards on a combination of technicalcorrections and rising political risksrelated to the general elections on June25. The post-election recovery has beeninitially slowed by attempts of the left-wing BSP to form a two-party minoritygovernment with the ethnic MRF in con-trast with recommendations of variousbusiness associations for a larger coali-tion with the former senior ruling partnerNMS-II. In fact, the major post-electionincrease of SOFIX has been scoredfrom the period of July 27, when theparliament rejected the BSP-led minori-ty government, until Aug 16 when the
larger 3-party government of BSP, NMS-II and MRF was sworn in. This move-ment confirms that stock investors havebeen viewing the option for forming anunstable minority government as theworst-case political scenario.
A bit surprisingly, the signing of the 3-party ruling agreement on August 15 and
the follow-up successful parliamentaryvoting for the new government, whichhas a solid backing of 169 out of 240votes in the parliament, brought a verysmall increase of less than 1% in thestock index SOFIX. The weak investorinterest is partly based on the usual lowactivity in August but is also promptingof certain political uncertainties. Threemajor political circumstances are forc-ing the business sector to keep a rela-tively reserved stance on the new gov-ernment: Firstly, the long political battlesfor forming the cabinet have demon-strated little political maturity and arecreating expectations for new tensionsbetween the 2 major ruling partnersBSP and NMS-II; Secondly, BSP leadersand President Georgi Parvanov havemade rather ungrounded statements thatthe risks of delaying the country's mem-bership in the EU are already very high.Expected opposite signals from theforthcoming progress report of theEuropean Commission on October 25,helped by the efforts of the parliamentto pass all major legislative reforms bythe end of September, will tend to rein-state investor confidence. Thirdly, NMS-II is largely isolated from all economicministries that will reduce the scale ofpolicy continuity. Despite all this nega-tives attributed to the new ruling coali-tion, the government is likely to be quitestable over a time horizon of at least 1year and all major state authorities andparties will remain united in relation tomeeting all EU accession targets. Inaddition, the economic growth inertia,sustained fiscal prudence guaranteed bythe appointment of Plamen Oresharskifor finance minister, and forthcoming Q3seasonal profits in the tourist companieslisted on the local stock exchange arelikely to push the stock index SOFIX tonew historical highs this fall or later inthe winter. ■
Stock Market CautiousAbout New Government
This article is based on extracts from ISI Emerging MarketsIntelliNews publications: Bulgaria This Week and BulgariaCountry Report. For more detailed information please contactISI Emerging Markets office in Sofia at +359 2 8160404 [email protected]
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A career officer in the senior ForeignService at the rank of Minister-Counselor, John Beyrle has held policypositions and overseas assignmentswith an emphasis on U.S. relationsCentral and Eastern Europe and Russiaand the USSR.
He took up his duties as U.S.Ambassador in Sofia, Bulgaria inAugust, 2005. From 2002-05, he servedas Deputy Chief of Mission at the U.S.Embassy in Moscow, following aWashington assignment as ActingSpecial Adviser to the Secretary ofState for the New Independent States,an Assistant Secretary-level positionoverseeing relations with the states ofthe former Soviet Union. He had previ-ously worked as Deputy Special Adviserin the same office.
From 1993-95, Mr. Beyrle was Directorfor Russian, Ukrainian and EurasianAffairs on the staff of the NationalSecurity Council. His overseas assign-ments have included postings to theU.S. Embassies in Moscow and Sofiaas a Political Officer and as Counselorfor Political and Economic Affairs at the
U.S. Embassy in Prague. He has servedas a member of the U.S. Delegation tothe CFE Negotiations in Vienna, as astaff officer to Secretaries of StateGeorge Shultz and James Baker, and asa Pearson Fellow and foreign policyadviser to the late Senator Paul Simon(D-IL).
Mr. Beyrle received a B.A. degree with
honors from Grand Valley StateUniversity (Michigan) and an M.S. as aDistinguished Graduate of the NationalWar College, where he later taught as aVisiting Professor of National SecurityStudies. His foreign languages areBulgarian, Czech, French, German andRussian. He is married to JocelynGreene, who is also a Foreign ServiceOfficer. They have two daughters, Alisonand Caroline.
Upon arrival in Sofia the U.S. diplomatvoiced satisfaction that he is succeed-ing James Pardew, whose team hasdone a lot to strengthen the bilateralrelations. I would like to continue in thesame spirit, Beyrle said before theBulgarian media.
Bulgaria already has a successful mar-ket democracy, it is a member of NATOand is getting ready for the EuropeanUnion, Beyrle said. "All that meansBulgaria and Washington have commoninterests to share", the new ambassadorexplained. He added it is a great pro-fessional and personal pleasure to worktogether with Bulgaria when sharing thesame principles. ■
John Beyrle Takes OverUS Ambassador Office
The new U.S. Ambassador John Beyrle arrives at Sofia Airport with his family.
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On Aug. 29 U.S. Sen. Chuck Hagel (R-Neb.) visited Bulgaria and met withPresident Georgi Parvanov, the newlyappointed Defense Minister VesselinBliznakov and Speaker of theParliament Georgi Pirinski. Sen. Hageldiscussed with the hosts perspectivesfor economic, business and militarycooperation between Bulgaria and theUnited States.
At the meeting with President GeorgiParvanov, Sen. Hagel was assured thatBulgaria will stay a loyal partner to theUnited States despite the latest politicaltransformations in our country. The pos-sibilities for increasing the Americaninvestments in Bulgaria and cooperationin the field of energy resources werediscussed. President Parvanovexpressed gratitude for the support
given by the United Nations to the caseof the Bulgarian medics sentenced inLibya, as well as for the aid provided toflood-affected regions of the country.
Senator Hagel had a meeting withGeorgi Pirinski next. The military coop-eration between Bulgaria and the UnitedStates and Bulgaria's support for theU.S. mission in Iraq were among thetopics at that meeting.
Earlier that day at the AmCham busi-ness breakfast the U.S. senator metwith the AmCham Bulgaria leadershipand several of AmCham member com-panies, where he learned more aboutthe business climate in Bulgaria.
Sen. Hagel was first elected to the U.S.Senate in 1996 and is now serving his
second term. Senator Hagel is thesenior Nebraska senator and a long-time member of the Senate's ForeignRelations Committee. He also serves onthe European Affairs Subcommittee, aswell as Subcommittees on East Asianand Pacific Affairs, and Near Easternand South Asian Affairs. Sen. Hagel isalso a member of the Banking, Housingand Urban Affairs Committee, as wellas the Intelligence and Rules commit-tees.
Senator Hagel was awarded twoPurple Hearts after suffering seriouswounds in combat in Vietnam. Afterreturning to the United States, he grad-uated from the University of Nebraskain 1971 with a degree in history. In1982, he started a successful cellulartelephone company. ■
US Ready to BoostBulgarian Investments
U.S. Senator Chuck Hagel during his meeting with Bulgarian President Georgi Parvanov in Sofia.
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On behalf of the European Commission,British Ambassador Jeremy Hill said theEuropean Union will continue to monitorclosely the cash coming from EU fundsfor Bulgaria's development in the nexttwo years. In front of AmCham membersand the media, Mr. Hill revealed the pri-orities of the British presidency of theEuropean Union in the coming sixmonths during a business lunch July20th in Hilton.
The United Kingdom's stated prioritieswill be economic reform and social jus-tice; security and stability; and Europe'srole in the world. The EU will launch inOctober a major new program to reducethe volume and complexity of EU legis-lation, in order to ease the burden onbusiness.
Among the top priorities remains thefight against terrorism which is a "battlefor ideas of democracy," AmbassadorHill said when elaborating on the tragicevents in London of July 7.
"I believe the EU member states remainfully committed to the Bulgarian mem-bership which depends on the domesticreforms. Regarding the accession datethere are two processes - the monitoring
one and the ratification one. The EUCommission report in October will providea crucial inside on the Bulgaria's state ofpreparation for the Union, said the Britishambassador. Bulgaria's overall progress
European Union toMonitor Closely Fundsfor BulgariaU.K. ambassador draws everyone's attention with a tacit warning
Businessmen and media were willing to learn more about the UK Presidency of the European Union. Representatives of Bulgarian American Enterprise Fund,
Technologica and other AmCham members came to the event.
Anthony Hassiotis CEO of Post Bank (right) was among several top businesspersons who met with HE
Jeremy Hill, UK Ambassador to Bulgaria before the lunch had started.
report is due on Sep. 25, with theCommission set to publish its decisionbefore the end of October.
Prior to AmCham luncheon, AmbassadorHill said that the new Bulgarian govern-ment should pay special attention to theissues in the so-called yellow card sent bythe European Commission on June 9. In aletter, the Commission warned that thereis a slowdown of reforms in five areas:judicial reform, agriculture sector, intellec-tual property, environment and services.
As of 2007 Bulgaria will start receivingconsiderable amounts of money from theEU structural funds. According to theBritish diplomat, the EU funds have to beproperly managed in Bulgaria and usedto develop the country and the aware-ness of that process is very important.Among hot issues for BulgariaAmbassador Hill mentioned the manage-ment of the judiciary, ranging from judi-cial training to the system as a wholewhich has to improve in Bulgaria. He isconvinced that it is achievable by thetime of accession. Infrastructure anddevelopment, proper procurement andproper procedures for administration are
other particular areas for the Bulgariangovernment to work upon.
Britain will work to deliver the EU's com-mitment to open accession negotiationswith Turkey on Oct. 3 and be ready toopen accession negotiations with Croatiaas soon as the conditions have beenmet, the ambassador said.
He reiterated the statement of PrimeMinister Tony Blair that the main priority
of the British presidency remains reach-ing of a compromise on the EU budgetframework for the period 2007-2013, aswell as for the European Constitutionthat was rejected in the French and theDutch votes. During the presidency,London is willing to add value on thetransatlantic agenda, in particular seek-ing areas for concrete cooperation andaction with the United States.Strengthening the economic partnershipwill be a particular priority. ■
HE Jeremy Hill, UK Ambassador to Bulgaria met with Dennis Wallach, CEO of Bulgarian
Telecommunications Company.
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- Your Excellency, do you think that political wrangling to form
the Government has delayed reforms and Bulgaria has lost
valuable time for the EU membership?
- The elections and formation of the new government inevitablymeant lost time in preparations for EU accession, particularly inadopting legislation. But I welcome the commitment of the gov-ernment now to press ahead urgently with the necessary legis-lation. It is very good the Parliament has been able to sit throughthe summer period. I regard the negotiations for formation of thegovernment as a part of the normal democratic process. Thesewere difficult negotiations but now Bulgaria has a coalition gov-ernment with a large majority in the parliament. It also has a suf-ficient majority to make constitutional amendments if necessary.The prospects on the legislative side are good for the next fewmonths.
- Should Bulgaria expect a positive annual report of the
European Commission in October and firmer support for the
country's candidature?
- An important part of the monitoring report will depend on thepeer review of justice and home affairs which took place at thebeginning of this month. It will also reflect the legislation andreforms that the new government and the new parliament hopeto enact in the next few weeks. At the moment it is difficult tosay precisely what the report will contain.
- The Government representatives promised to speed up the
work of Parliament to adopt 36 laws in one month?
- We warmly welcome the commitment of the new Parliamentto enact this legislation. That is a very positive step forward. Inparallel to that, we hope that new administrative structures willbe put in place. For example, in the field of agriculture, it isnecessary to establish the mechanisms which will allow pro-cessing of EU payments. Veterinary controls need to be estab-lished too.
- How do you evaluate progress in judicial reform and the pre-
sent peer review?
The purpose of the present reforms is to make both criminal andcivil legal procedures more efficient. But this has to be backedup by improvement of court practices as well. The EU peerreview has been evaluating not only the effectiveness of the draftlaws but also progress in implementation. One of the experts wasfocusing on progress against corruption, including the areas ofeducation and healthcare. Their monitoring had a very practical
emphasis. The experts are now preparing their reports. Theresults will be produced before the Commission's report at theend of October.
- Do you think that ostentatious shootings of mafia bosses
which are part of the organized crime could be one of the
major hurdles for Bulgaria's membership in the EU?
-I think it shows the importance of the authorities taking steps tocombat organized crime. It has long been a concern of theEuropean Union. We have very good enforcement cooperationwith the Bulgarian authorities but I think there is a wide percep-tion that the fight against the organized crime needs to deepenand strengthen. I welcome the statements made by the new gov-ernment. We will have to judge by the results and to see what
Legislative Reforms inBulgaria Should Makethe Law Process EfficientThe Fight against Organized Crime
Needs to Deepen and Strengthen Says
HE Jeremy Hill, Her Majesty
Ambassador to BulgariaBy Irina Bacheva
Peter Jeremy Oldham Hill (Jeremy Hill) was born on April 17,1954. His career in the diplomatic service started in 1982when he was appointed as an assistant legal advisor. From1987 to 1990 Mr. Hill was a legal advisor at the BritishEmbassy in Bonn, and between 1991 and 1995 he worked asa legal counselor in the Attorney General's Office in London.Jeremy Hill's next appointment (1995-1998) was as Counselorfor the Legal, Justice and Home Affairs in the Brusselsembassy. He is married, and has a daughter and a son.
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effect the new steps will have. The UK and other internationalpartners stand ready to help.
- Do you have a feedback from the British businesses that
the shootings here somehow affect their trust in the country?
- Last year there was an increasing number of British business-es coming here looking to invest and trade. But confidence in thejudicial system is an important factor affecting their willingness toinvest. There are two aspects. First, businessmen expect an envi-ronment which is free from corruption and free from pressurefrom mafia or other unduly strong interests. Secondly, business-es need to have confidence in the impartiality and efficiency ofthe judicial system. Although there is an increasing amount ofinvestments and trade in Bulgaria, further measures in this areawill improve investor confidence.
- Does Bulgaria still have the potential to attract the British
business after the failure of Bulgartabac deal and the failure
of BAE Systems to win a contract for the Bulgarian military
helicopters?
-The trends in the business environment and investment are gen-erally positive. I believe that the previous government achieved alot in promoting macroeconomic stability. The indications from thenew coalition government are also very positive. With theprospect of EU accession, we will see greater interest on the partof British investors and business, including medium and large-sized companies.
- Does London envisage concrete steps to overcome
European scepticism toward the new European Constitution
that was rejected in the French and the Dutch votes? Which
are the countries you are going to cooperate with?
- At the moment, after the Dutch and French votes, there is aperiod for reflection on the future of Europe and on the future ofthe European Constitution. In the late autumn there will be aninformal meeting of the European Council to discuss strategicissues. This will include a debate on how the European Unionshould respond to the challenges of globalization, how business-es can become more competitive and how we can at the sametime maintain a good level of social protection. We need to askhow EU economies can compete with those of China, India andthe whole of Southeast Asia. This is a challenge for all the EUMember and Accession countries.
- In the UK experience how could business organizations help
the businesses to ease the accession process into the EU?
- In every country, as well as in Bulgaria, business organizationshave a positive role to play. They help promote and protect for-eign investment, which helps economic growth. Positive experi-ences shared through business organisations feed back into thehome countries, like USA and Western Europe, and encouragefurther investment. Business chambers often help to introducecorporate standards, which is very good for the business envi-ronment. They help discussion about where further reformsshould be made, where the government can improve proceduresor legislation. They also have a useful role in lobbying and let-ting the government know what would promote better businessconditions. This can be done either by the chambers talkingdirect to the government or by the chambers acting together withthe embassies. ■
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Michael Fritz replaces DebraMcFarland as the new Mission Directorfor the U.S. Agency for InternationalDevelopment (USAID). Mr. Fritz arrivedin Sofia on July 28, and has alreadysubmerged himself in the day to dayrunning of the Mission and its pro-grams.
Mr. Fritz was born on December 20,1949, in Burbank, California and grewup in Glendale, California until the ageof ten, moving to the small town ofRed Bluff in northern California untilfinishing high school. He has one sis-ter. Mr. Fritz received his Bachelor ofArts degree with honors, in Psychologyand Statistics from Portland StateUniversity in Oregon in 1974, and hisMasters in International Business fromthe same University in 1980.
Prior to joining the Foreign Service in1988, Mr. Fritz worked with private sec-tor in Saudi Arabia and Egypt in a vari-ety of logistical and managerial posi-tions. He managed a freight forwardingcompany, Four Winds, and wasPersonnel Director for a hospital project.
Before arriving in Sofia, Mr. Fritz wasbased in Almaty, Kazakhstan, where hewas the Acting Mission Director forUSAID's Central Asian RegionalMission from February 2005 until July2005. Prior to that, he was the DeputyMission Director, also in Almaty, fromJune 2001 until February 2005. As theDeputy Director, he was responsible fordesigning and managing assistanceprograms worth $500 million in the fiveformer Soviet Central Asian Republicsof; Kazakhstan, Kyrgyzstan, Tajikistan,Turkmenistan and Uzbekistan.
Upon his arrival, USAID'sCommunications Specialist interviewedhim to find out his goals and objectives,as well as his other interests. Since thestart of reforms in Central and EasternEurope in 1989, USAID has played acentral role in Bulgaria's evolution. Mr.Fritz intends to continue USAID's strate-gic focus here in Bulgaria, which is to
assist with Bulgaria's accession into theEuropean Union in 2007. Mr. Fritz elab-orated his primary goals for the nextthree years.
First and foremost is the Rule of Law.This has always been a strategic prior-ity for USAID and its partners. Over thelast fifteen years, USAID has madeconsiderable efforts to establish acomprehensive but strategic programin Bulgaria. USAID is currently imple-menting a multitude of programs in;commercial law reform, anti-corruption,small and medium business develop-
ment, and judicial strengthening, tomention but a few. These programsare designed to address the lack ofinstitutional capacity to apply the lawin an effective, transparent and inde-pendent manner. A poor judicial sys-tem retards economic developmentand international investments, as busi-nesses have little or no confidence inthe administration of the law.Bulgarians themselves need to believethat the law responds to their needsand protects their rights. All this is anecessary precursor for a vibrant civilsociety and economy.
New USAID Director toProp up Judicial Reforms
Michael Fritz
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The second is Economic Development.Again the USAID Mission has beendoing important work in supporting theeconomic growth over the years,focusing on strengthening the privatesector, improving access to financialresources and supporting the modern-ization of the agricultural sector.Additionally, USAID continues to assistthe government in implementing andconsolidating the pension and healthreform plans.
Thirdly, is Local Government Reform.USAID is helping Bulgaria with decen-tralization of authority to local govern-ments. For example, we have helpedlocal governments engage their citizen-ry in transparent public processes andprocedures and we helped to establisha nationwide association of local gov-ernments to advocate for local issues ata national level. Working in partnershipwith Bulgarian organizations, USAID isassisting parliament to prepare and passlegislation which would allow local gov-ernments to set their own tax rates. Thiswill be a major step in the continuingevolution of local government's ability tofinance and manage their own affairs.Although, there has been considerableprogress much work still remains.
He may be a Mission Director who isresponsible for a multi-million dollarportfolio, but Mr. Fritz also loves theoutdoors. He has already hiked to thetop of Vitosha, and the seven lakesregion in the Rila Mountains. "Thisallows me to have a better under-standing of the country and its peo-ple," he said. He is looking forward togetting out and about visiting the dif-ferent USAID projects across the coun-try. He is also interested in taking thetime to meet USAID's local partnersand implementers, and seeing firsthand the success and achievementsof the various projects. Field trips alsoprovide the chance to meet and talk tothe average citizen on the street thathas benefited by USAID in some way.
Mr. Fritz is an avid bike rider; he rodepart of the Tour de France at the endof July, and thoroughly enjoyed it. As arunner, he hopes to partake in theIstanbul marathon in October, whichstarts in Asia and finishes in Europe.However, he notes that it will only be"half a marathon" as he does not havethe time to train for a full marathon.
Mr. Fritz is excited at the prospect ofliving and working in Bulgaria as it hassuch a rich and exceptionally interest-ing history and culture. His love ofarchitecture, will keep him busy here inSofia, let alone the rest of the country.Mr. Fritz is accompanied by his wife,Susan (who will be taking up the posi-
tion of Regional Democracy Officer forUSAID), and their three year old twins,Kai and Cody. The Fritz family alsoincludes two dogs, Cliff and Sara
When it comes to hobbies, Mr. Fritz hasa number of things he likes to dabble insuch as designing a house in NewMexico, (he says he's a frustrated archi-tect), to photography, but most of all inhis words; "I suppose you could say thatour three year old twins are our primaryhobbies, and I am hopping that I canhelp them develop a love of nature whilewe are here in Bulgaria."
Mr. Fritz will be in Bulgaria until USAID"closes its doors" in September 2008. ■
The new Mission Director for the U.S. Agency for International Development Michael Fritz with his family.
Previous USAID Posts2001-2005 Almaty, Kazakhstan
2000-2001 Washington, D.C
1999-2000 Botswana
1997-1999 Sarajevo/Bosnia Herzegovina
1995-1997 Kiev, Ukraine
1991-1994 Bujumbura, Burundi
1990-1991 Abidjan, Cote d'Ivoire
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The management of AmChams inCentral and Eastern Europe held aregional review meeting on Aug. 11-13 inPrague. The chambers' policies, advoca-cy, publications, events, public relations,membership and finance structures werediscussed in depth by the executive andstaff representatives of the AmChamsfrom Czech Republic, Slovakia, Slovenia,Germany, Poland, Hungary, Bulgaria,Romania and Ukraine. The attendeesshared best practices from their experi-ence, planned regional co-operativeefforts and received training in negotia-tion and conflict-resolution skills.
All chambers agreed that their commonchallenge is retaining and recruitingmembers, and offering businesses ser-vices that are meaningful. The mostattractive events are those emphasizingnetworking (cocktails, business-after-hours meetings, luncheons), providingeducational benefits (seminars and con-ferences) and developing lobbying initia-tives (government roundtables).AmCham Bulgaria ranked 4th in highestincrease of membership in 2004,according to the chamber's surveywhich compared members of theEuropean Council of AmericanChambers (ECACC).
Why companies join AmCham? The
regional meeting identified several mainreasons:
● To join forces with a recognized leading business organization;
● To have unique access to decisionmakers and people of influence;
● To join advocacy and internationalpolicy-making activities
● To help expand the markets - busi-ness information, contacts, markpotential business opportunities, con-tact with potential business partners;
● To collaborate closely with other U.S.- E.U. authority bodies including U.S.and E.U. missions abroad.
The chambers in Central and EasternEurope agreed that a climate conduciveto business is of great importance forthe current members and for the poten-tial ones who then see the role ofchambers in influencing legislative andregulatory reforms.
For its policy advocacy AmCham inPrague has established priority issues infour major areas of economic policy:competitive laws and regulation; effi-ciency in the public sector; access tocapital; and innovative workforce. Inidentifying and responding to issues ofconcern to the international businesscommunity, this chamber follows threepolicy precepts:
● legislation and regulation should beconductive to global competitive-ness;
AmChams Share Ideas, Goals in Prague
The participants in the seminar resolve case studies for successful negotiations together with Doc. Vladimir
Hlavenka, a leading Czech academician.
Weston Stacey, the AmCham Czech Executive Director thanks all the participants for the very successful
regional meeting.
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Tumbleweed® Communications Corp., aprovider of email security, file transfersecurity, and identity validation softwareand appliances, announced August 25thMobiltel AD has chosen TumbleweedMailGate Email Firewall to filter andsecure email traffic at the Internet gate-way, protecting the company networkfrom spam, viruses, phishing attacks andemail fraud.
Mobiltel will deploy MailGate EmailFirewall with Dynamic Anti-spam Service(DAS) to block incoming email trafficagainst threats, and encrypt outgoingtraffic to ensure privacy and security.Using MailGate Email Firewall, Mobiltelwill be able to protect the company net-
work from security risks and in also beable to block spam, viruses, phishing,and other dark traffic components.
About MailGate Email
Firewall
Tumbleweed MailGate Email Firewallhas been recognized as having the bestemail security product functionality byMETA Group, and was rated the #1enterprise software solution for fightingspam, according to Network World(http://www.nwfusion.com/reviews/2003/0915spam.html). MailGate Email Firewallprotects, filters and secures email trafficat the Internet gateway with an integrat-ed set of anti-spam, anti-virus, anti-hacker, content filtering, email relay andencrypted messaging capabilities --minimizing email communications risksand reducing email management costs.
About Tumbleweed
Dynamic Anti-spam Service
The Tumbleweed Dynamic Anti-spamService (DAS) is rated as a top anti-spam service for large enterprises byNetwork World magazine, and the prod-uct is currently used to block over 32million spam messages per day onbehalf of its customers. DAS is anInternet-based subscription service thatupdates MailGate Email Firewall andMailGate AntiSpam Appliance with newdefenses as they are published, similarto the way anti-virus engines work. ■
● companies should have equality intreatment (a level playing field); and,
● transparency should be achieved inthe public and private sector.
In 2004 the Czech Chamber advocatedthe adoption of a new act on bankrupt-cy, as well as the new procedure forcommercial registration and the introduc-tion of maximum contributions to themandatory pension and healthcare pay-ments. The chamber deals with issuesthat affect the entire business communi-ty in the country, not only separate sec-tors of the economy, said Weston Stacey,the AmCham Czech executive director.
The usual practice is for AmChamCzech members to convey the issues tochamber's officers who then try to findthe appropriate mode of action. SmallBusiness Council meetings gather big-ger AmCham member companies andsmaller ones; Keystone Seminars withleading politicians resolve case studiesdeveloped by AmCham; Working groupsmeet with parliamentary committees toadvocate laws enactment.
Among the priorities of AmChamRomania for 2005 is to organize forums,seminars and provide information toSMEs members. It envisages regular con-tacts with the vice-prime minister incharge of SMEs and the NationalAuthority for SMEs. The ultimate aim ofthe chamber is to develop long-term linksand collaboration between large membercompanies and SME members. ■
Maurits van der Vegt, AmCham Hungary shares
ideas with Matej Stuska, AmCham Slovakia dur-
ing the seminar group exercises and case studies.
A realistic term for adopting the euro in Bulgaria is 2010, in case the accession takesplace in 2007, a report of Bank Austria Creditanstalt (BA-CA) says.
The EU candidate states from the southeastern Europe mark sustainable progress intheir way for joining the Eurozone, BA-CA\s document further state. Bulgaria andRomania are to join the European Union on January 1, 2005 in case they finalizethe required reforms and quickly solve any potential internal political problems.
BA-CA thinks that the preservation of the currency board in Bulgaria is a crucial con-dition for adopting the euro in the near future. BA-CA expects an average inflationrate of 4.0% for 2005 and 3.8% for 2006 in Bulgaria. According to the forecast, theten new EU member states will introduce the euro between 2007 (Estonia, Lithuaniaand Slovenia) and 2010 (the Czech Republic, Poland and Hungary). ■
Bulgaria to Join Eurozone 2010
Mobiltel ChoosesTumbleweed Email Firewall
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Mr. Jacques Brune has been appointedGeneral Manager of Hilton Sofia toreplace the current General Manager,Friedrich W. Niemann at the end ofAugust. After more than two and a halfyears of managing the Hilton Sofiahotel it is time for Friedrich W. Niemannto move on: he will take over responsi-bility of the Athenee Palace HiltonBucharest hotel, a landmark hotel,which had first been opened in 1912and which is nowadays the company'smost profitable hotel in south-easternEurope.
During his time in Bulgaria Mr. Niemannhas continuously fostered the successof Hilton Sofia. Revenues and profitshave significantly improved and thehotel has regularly received awards forits excellent service quality.
Mr. Jacques Brune (41) will be HiltonSofia's new General Manager. Hereceived his university studies at the
University of Toulouse, France.
Mr. Brune has a very broad experiencein hotel operations, especially in the Foodand Beverage sector. His career stepsinclude being Assistant Food & BeverageManager at the Hilton Paris; Food &Beverage Manager at the Concorde SaintLazare hotel in Paris; Director ofOperations at the Hilton Charles deGaulle. Since December 1999 he was incharge of the large operation (such asthe Film Festival and all city congresses)at the Noga Hilton Cannes, the leadingbusiness hotel in Cannes with 234 roomsand 10 conference rooms.
Jacques Brune speaks French andEnglish. He is very much looking for-ward to his new assignment in Sofia andespecially keen on the slopes of Vitoshaand Rila mountains, as skiing is one ofhis most favorite interests. He will relo-cate to Sofia from Cannes together withhis wife and two kids. ■
New General Manager of Hilton SofiaAppointed
There are different ways to celebrate a birthday. Coca-Colachose to celebrate its 40th Anniversary in Bulgaria by givinginstead of receiving gifts.
On July 12, 2005, at a special celebration attended by 350partners and friends, the company donated a new water sup-ply pipeline to more than 13,000 people living in the Kostinbrodcommunity where the company's most advanced productioncenter in Bulgaria is located. Nigel Davis, Coca-Cola HellenicBottling Company Bulgaria's Country General Manager, pre-sented the donation to the citizens of Kostinbrod on behalf ofall Bulgarians working for Coca-Cola with the message "Weare here to stay!." He and Kostinbrod Mayor Krassimir Kunchevinaugurated the new water supply facility. In 2005 CCHBCBulgaria invested its own funds in the construction of 8,300meters of new pipeline and in the reconstruction of another2,000 meters in the existing local water supply system. Theresidents of Kostinbrod are able now to receive water runningat a 25-liter-per-second flow capacity that is filtered at CCHBCBulgaria's Kostinbrod plant's water treatment station. The pro-ject was implemented jointly by CCHBC Bulgaria and theMunicipality of Kostinbrod as a public-private partnership. Itsolved a long-term problem in the Kostinbrod community,where households suffered, for over four decades, from lack ofa regular water supply between May and October.
In an address that was read on the occasion of the anniver-sary, Bulgarian President Georgi Parvanov said: "The Coca-Cola production plant in Kostinbrod brings pride not only to thecitizens of this town. It is a leader among Bulgarian compa-nies in introducing European systems for best practice in pro-duction and quality management. I am particularly impressedby the way in which you have chosen to celebrate today, the40th anniversary of Coca-Cola in Bulgaria, by launching thenew water pipeline for Kostinbrod that is supported by you."
Parallel to this community gift, CCHBC Bulgaria also rewardedits employees. The 410 of them with over 10 years of serviceto the company received a special Anniversary certificate ofgratitude and each employee - a branded Coca-Cola wrist-watch with gratitude inscription, a Coca-Cola music CD withremakes of popular Bulgarian songs from the last four
decades, and a special "40 Years of Coca-Cola in Bulgaria -We Are Here to Stay" history book. The book, also presentedto partners and guest at the celebration, is a way for the com-pany to share with everyone its rich history in Bulgaria.
Evguenia Stoichkova, Market Development Manager of Coca-Cola Bulgaria, and Nigel Davis cut the giant Coke cake at theAnniversary celebration. US Ambassador Pardew and his wifeCathy Pardew were the first to taste the birthday cake. Guest atthe party were government officials, company managers, part-ners and friends of Coca-Cola, who enjoyed a sunny picnic inthe nature-surrounded area of the Kostinbrod bottling plant. ■
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40 Years of Coca-Cola in Bulgaria: 'We Are Here to Stay!'
Coca-Cola came to Bulgaria in 1965, which made it thefirst Eastern European country behind the Iron Curtain toproduce the iconic beverage. Since 1992, the Coca-Colasystem has invested over 170 million euro in the Bulgarianeconomy. CCHBC Bulgaria was named Bulgarian Investorof the Year in 1996 and it was nominated Taxpayer of theYear in 2003. Annually, the Coca-Cola system contributesover 25 million euro in taxes to the country. More than1,000 Bulgarians work for the Coca-Cola system inBulgaria. To date, CCHBC Bulgaria has invested morethan 4 million euro in the education and development ofits employees. Coca-Cola conducts many educational,sports and charitable programs. It supports infrastructureprojects, public holidays, cultural and sports initiatives thatattract more than 50,000 participants annually.
The American pharmaceutical company Pfizer has been honoredwith three of the world-famous international PharmaceuticalAchievement Awards. The fourth annual PharmaceuticalAchievement Awards recognize the significant accomplishments ofindividuals and organizations in the global pharmaceutical andbiotechnology industries in the areas of science, business and cor-porate generosity. The 2005 awards program includes eighteenhigh level awards in five categories - Research and Development,World Health and Community Involvement, Scientific Achievement,
Marketing and Pharmaceutical business. On August 22nd 2005 inBoston, Massachusetts (USA) the 18 Pharmaceutical AchievementAwards were presented in a ceremony and Pfizer was honored withthree of them - for the Innovative Pharmaceutical Product/Macugen, an angiogenesis treatment for age-related maculardegeneration/; for Outstanding Small Molecule Product /Inspra - aselective aldosterone blocker for the treatment of post-myocardialheart failure/ and for Disease Prevention and Education /InfectiousDisease Institute, Uganda/. ■
Pfizer Receives Three of the PrestigiousPharmaceutical Achievement Awards
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Radisson SAS Grand Hotel launched a unique for Bulgariainternship program for young and motivated people, willing tobuild careers in the hospitality industry. The program is one ortwo years' term. The participants will be trained between 1 and4 months, depending on the department and the duration of theinternship that each of them has chosen.
"The lack of qualified staff is a real problem for the hospitalitybusiness in Bulgaria. This fact has been a topic of many dis-cussions and round tables within the industry. Therefore, wedecided to create the staff we need, encouraging them to enrollin our program", said Martin H. Kolb, General Manager of theRadisson SAS Grand Hotel.
At present 11 people are taking part in the internship program.The participants get salary and have all the benefits that thehotel employees are entitled to. At the successful end of theprogram the trainees will be offered a position with the hotel. Forthose completing the two-year program the offer will be forsupervisory level.
"I believe that this program is beneficial for both sides - for thetrainees it is a unique opportunity to start their career in a tophotel as the Radisson SAS; for us - it is a flow of young ener-getic and motivated people, who will refresh the staff and enrichthe teamwork", Mr. Kolb added. ■
207 high-school students will be grantedscholarships by High Start with Postbankprogram. These are one-time scholar-ships, each of them amounting to BGN400. 112 of the total number of winnershave passed the national test with flyingcolors and the rest 95 ones with ratesbetween 5, 88 and 5, 99.
Postbank also grants another 7 scholar-ships in addition to the prize fund of BGN80 000 due to the higher number of stu-dents with 5, 88 rates (23 students), itwas reported by the financial institution.
Each of the 24 000 high-school students,who took the National Foreign LanguageExam carried out by the Ministry ofEducation and Science, had the chanceto apply for scholarships by High Startwith Postbank program.
4 133 of the students who showed excel-lent results at the exam competed forscholarships by Postbank with the coop-eration of the Ministry of Education andScience. Pupils who were granted schol-arships are 8th grade at the specializedschools all over the country.
High Start with Postbank program is car-ried out jointly with the Ministry ofEducation and Science. This project is anextension of Postbank sponsorship linefor support of Bulgarian education and ameans of strengthening its image as atraditional partner in socially-importantcampaigns in the sphere of education,culture and sports.
"The aim of High Start with Postbank pro-gram is to make students take a differentview of education as an investment intheir successful future", said Anthony
Hassiotis, Chief Executive Officer of theBank. It is the first of its kind program forsupport of Bulgarian secondary educa-tion launched by a financial institution inBulgaria.
The families of all high-school studentswho applied for scholarships by Postbankwill be offered preferential terms of use ofthe products and the services of theBank. At the end of September, all schol-arship students will be bestowed theirprizes and participant diplomas at specialceremonies in five districts - Sofia (Sofia,Sofia district and Blagoevgrad); Plovdiv(Pazardjik, Plovdiv, Kustendil, Kardjali andAsenovgrad); Veliko Turnovo (Vidin,Vratsa, Montana, Veliko Turnovo, Gabrovo,Pleven); Varna (Varna, Dobritch,Targovishte, Shumen, Razgrad, Ruse,Silistra); Burgas (Haskovo, Smolian,Yambol, Sliven, Stara Zagora, Burgas). ■
207 High-School Students GrantedScholarships by Postbank
Interns and new employess have successfully completed their first corporate
trainig "Yes, I can!"
Interns and new employees getting familiar with corporate values and hospitali-
ty business "secrets".
Radisson SAS Grand Hotel Establishes ItsOwn University
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Kamenitza AD Appoints New GeneralManagerJohan De Smet-Van Damme has beenappointed General Manager "Kamenitza"AD. As of the 1st of October, 2005, hewill succeed Andreas Seemuller, who
has been appointed General Managerof "Apatin" brewery in Serbia.
Johan De Smet-Van Damme joined thecompany in 1987and held severalCommercial func-tions in the Belgianorganization beforemoving in 1997 asone of the pioneersto China. For thelast 5 years he hasbeen working inBulgaria first asC o m m e r c i a lDirector, later asMarketing Directorin "Kamenitza" AD.
Andreas Seemullerjoined the companyin its Russian affili-ate - Sun InterbrewRussia, in 2001 asCommercial VicePresident WesternPart of Russia. Fromthere he moved tothe position ofGeneral Manager
Bulgaria at the end of 2003 putting"Kamenitza" AD back into the "Number1" position in the country.
Prior to InBev Andreas Seemuller heldseveral senior Commercial positions, aswell as General Manager responsibili-ties in such companies like Wrigley's,Duracell and Gillette. ■
Vedior Group, one of the world largestHR companies, has acquired controllingstake in ConsulTeam, a leading humanresources company in SoutheastEurope, with offices in Sofia and Varnain Bulgaria, Belgrade, Serbia andMontenegro and Zagreb, Croatia. VediorGroup, headquartered in Amsterdam,Netherlands operates on 41 markets,has 2300 offices and 15,000 staff andturnover for 2004 of 6, 5 billion Euro.
After the deal, there will be no changesin ConsulTeam corporate branding andname, management, as well as opera-tionally, and ConsulTeam will maintainits relation with the existing partners.Vedior will strengthen the ConsulTeamoperation through increased state of theart know-how access, training and
ConsulTeam Joins Vedior Group
Johan De Smet-Van Damme
Andreas Seemuller
Herbert Jenni, Regional Manager of Vedior Group for Central and Eastern Europe, delivering an internal pre-
sentation to the team and guests after the contract signing.
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CMS Cameron McKenna, a leading
international legal consultancy company,
established an office in Sofia in
February 2005. We have a team of
qualified local and international lawyers
able to support your business. Working
with us you'll benefit from:
Our practical experience of negotiating
with the Bulgarian Government - we
advised Advent International on the 730
million acquisition of BTC and are advis-
ing RAO UES on the acquisition of
Thermal Power Plants in Varna and
Rousse. Commercial insight into the
local market - we combine our local
knowledge and contacts with our region-
al experience to offer solutions that
work for you. Some of our clients -
Advent International - USA; BTC-
Bulgaria; Imperial Tobacco - UK; Quinn
group - Ireland; RAO UES- Russia.
Contacts:
Mr. Peter Valert
Managing partner
T +359 2 921 9912
F +359 2 921 9919
CMS Cameron McKenna EOOD
14 Tsar Osvoboditel Blvd., Floor 2
1000 Sofia,Bulgaria
Pratt & Whitney, a United
Technologies company, is a
world leader in the design,
manufacture and support of aircraft
engines, space propulsion systems and
industrial gas turbines. Whether it's through
the development and implementation of
better heat-resistant coatings, more envi-
ronmentally friendly processes, innovative
servicing procedures, more efficient turbine
blades or more fuel-efficient engines, Pratt
& Whitney is the pioneer behind most
major advances in military and commercial
aviation. That's why our engines power
more than half of the world's commercial
air fleet, and the leading weapon systems
of the U.S. Air Force (all operational F-15s;
most F-16s; all C-17s; and all F/A-22s).
Pratt & Whitney also powers the interna-
tional Joint Strike Fighter in development.
Twenty-one allied nations have selected
Pratt & Whitney power for their frontline
fighters. And, Pratt & Whitney supports its
military customers with a broad range of
expert services.
Contacts:
Mr. Dante Capurro
General Manager
Phone: +1 860 5571490
Fax: +1 860 5571200
E-mail: [email protected]
400 Main Street, East Hartford, CT
06108, USA
www.pw.utc.com
Vector is a rapidly expanding
international management con-
sultancy, building upon its core
skills acquired in managing business
change, the built environment and devel-
opments within the commercial, industrial
and transportation sectors. Vector has its
headquarters in London, and operates
internationally in Europe, from offices in
Belgium, Germany, Austria, the Czech
Republic, Serbia & Montenegro and
Bulgaria; also, from offices in China,
Malaysia, Singapore, Saudi Arabia and
Bahrain, and other associate offices.
Vector Management Bulgaria is a wholly
owned subsidiary of Vector Management
International Ltd. and is part of the Vector
Group. Vector has been working in
Bulgaria since 1997, providing a suite of
services covering the full project cycle -
from Business Consultancy, Development
Management, Project Management, and
Commercial Services to Facilities
Management and Operational Support,
working to a BS EN ISO 9001 registered
quality management system.
Contacts:
Rossen Kolev
General Manager
T +359 2 8500495
F +359 2 8500496
M +359 88 8312011
E-mail [email protected]
W www.vecman.com
development opportunities and directinvestment.
George K. Parvanov, Managing Directorof ConsulTeam, commented: "We arevery satisfied with the choice of Vediorand are confident that we are joining apartner, who on one side will give us theflexibility of the daily operation in orderto remain efficient and reactive, and onthe other hand bring our company tonew horizons."
"One of the most exciting benefits ofthe cooperation with Vedior is the factthat they see ConsulTeam as door to anumber of markets in Southeast Europeand we will have the chance to jointlyopen under the ConsulTeam brand andwith our approach Romania, Slovenia,Ukraine, with Bosnia, Albania andMacedonia remaining under observa-tion" he added. ■
From left to right: Herbert Jenni, Regional Manager of Vedior Group for Central and Eastern Europe, Georgi
Parvanov, Group Managing Director, ConsulTeam, Vesselka Tzotcheva, Managing Partner, ConsulTeam
Human Capital. Counselors Yordan Najdenov and Violeta Hristova, Boyanov&Co (second row).
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Bonnie Raitt
A long-time critics' favorite, Bonnie Raittis one of the most technically giftedfemale guitarists in the world. However,commercial success did not arrive untilthe release of her 10th (and aptly-named) album, Nick of Time (1989).
Bonnie was born in Burbank, Calif., onNov. 8, 1949 and started playing guitarat the age of 12. After dropping out ofMusic College in 1969, she began play-ing the Boston folk and blues club cir-cuit, playing with heroes such as Howlin'Wolf and Mississippi Fred McDowell. Bythe start of the seventies, she hadgained such a good reputation that shewas signed by Warner Bros.
Her self-titled album, issued in 1971,caused a storm. The soulful vocals com-bined with the quality of the song selec-tions made this one of the finest debutalbums of the year. What really turnedheads, however, was Bonnie's guitarprowess, particularly with a bottleneck.
Her 1972 follow-up, Give It Up featured amore eclectic track-listing and featuredmaterial from Jackson Browne, as wellas three original Bonnie Raitt composi-tions. In 1973, Takin' My Time was verywell received by the critics, as wereStreetlights (1974) and Home Plate(1975). Forgiveness in 1977 saw Bonniescore her first hit single with a cover ofDel Shannon's classic Runaway.
The release of The Glow in 1979 inten-
tionally appeared at the time of a star-studded anti-nuclear concert at MadisonSquare Garden organized by MUSE(Musicians United for Safe Energy), anorganization co-founded by Bonnie. Sheremained a committed activist, playinghundreds of benefit concerts.Meanwhile, her albums were beingapplauded by the critics, but still achiev-ing little commercial success, as wasthe case with 1982's Green Light and1986's Nine Lives.
In 1996, Bonnie became the first womanguitarist to have her own SignatureModel guitar - the Bonnie RaittSignature Stratocaster®.
In 1989, with legendary producer DonWas on board and a move from WarnerBros. to Capitol, Bonnie recorded NickOf Time, winning numerous GrammyAwards, including Best Album.
Bonnie had become a superstar virtual-ly overnight. She emulated this successwith Luck of the Draw (1991), whichyielded the hit singles Something to TalkAbout and I Can't Make You Love Me.
Further success came with the releaseof Longing in Their Hearts (1994), thelive album Road Tested (1995),Fundamental (1998) and Silver Lining(2002). A Best Of… compilation, cele-brating Bonnie's successful career fol-lowed in 2003.
For her stage set-up, Bonnie uses anoriginal 1965 Stratocaster®, an AmericanStrat® and of course, her own BonnieRaitt Signature Stratocaster®. She alsouses a Fender® Pro Junior™ amplifier.
www.bonnieraitt.com
Sheryl Crow
Born in 1962, singer-songwriter SherylCrow grew up in Kennett, Mo., andbegan a career in music shortly afterhigh school, moving to St. Louis to singR&B covers.
Crow broke into the industry in the1980s and began performing as a back-ing singer with artists such as George
Harrison, Joe Cocker, Stevie Wonderand Rod Stewart.
She began a solo career in 1993 withher bluesy A&M debut, Tuesday NightMusic Club. Thanks largely to theupbeat radio/MTV hit All I Wanna Do,the album went multi-platinum.
Her eponymous 1996 follow-up wasequally as successful with the radio hitsIf It Makes You Happy, Everyday is aWinding Road and A Change (Will Do YouGood). The album went multi-platinum.
Crow spent much of 1997 and 1998 onthe road, playing select dates on theRolling Stones' Bridges to Babylon tourand performing with the 1998 Lilith Fair.She released her third album, The GlobeSessions, in the fall of 1998, and wasawarded a Grammy for Best Rock Album.
After a long break, during which sherecorded Sheryl Crow and Friends: Livein Central Park, featuring guest musi-cians like Keith Richards, Dixie Chicksand Eric Clapton, she recorded C'mon,C'mon in 2002 - a throwback to thegood-time classic rock of the 1970s.
Sheryl plays a variety of guitars, includinga Custom Shop Relic Telecaster® (red) a'62 Tele® (Green) and a Guild® Bass.
www.sherylcrow.com ■
The Top Fender ® FemalesBy Snejanka Natcheva