The scandal that made headlines during the European elections
In Bulgaria, elections usually mean the revelation of political scandals. The vote for members of the European Parliament was no exception. Prime Minister Boïko Borissov's party, whose GERB (Citizens for European Development) is a centre-right party with affinities to the far right, experienced Apartmentgate, or the "apartment crisis". Some ministers had indeed benefited from more than advantageous prices for the purchase of luxury apartments in Sofia (600 € per square meter instead of 2,600 €!). Not to mention the construction of a skyscraper, in an area where the law forbids it, with the involvement of the general prosecutor, the minister of justice or the anti-corruption chief. Another scandal involved senior officials who embezzled european funds to build "guest houses" that were never intended for that purpose. As a result of these various cases, several ministers and officials resigned, which mitigated the ongoing scandals. The electorate showed its discontent by not going to the polls or by voting for another party. But GERB still won six of the 17 seats.
A waste and water crisis
In October 2019, the port of Varna receives 127 containers from Italy. All of them are filled with waste. The situation could have ended there because the free movement of goods within the European area allows it. However, the waste is not the same as the one indicated on the customs vouchers and instead of being only plastic and rubber, there is also metal, glass and wood, which makes it illegal. Why is this? Because the waste is either going to illegal dumps all over the country or to storage sites. The government should oppose the fact that thermal power plants (mainly the one in Bobov Dol, 70 km south of Sofia, and the one in Sliven) use this waste as fuel instead of coal because they emit fine particles that threaten the health of the inhabitants. By the first quarter of 2020, Bulgaria had sent back about 20 containers to Salerno, near Naples.
Even if the situation with these containers is resolved, you will not fail to see along the roads multiple colored plastic bags, leftover plastic bottles and other waste.
In Sofia, ragpickers play a significant role in waste separation. They are underprivileged inhabitants who rummage through the garbage looking for recyclable materials (paper, glass...) and sell them to the sorting centers, thus ensuring half of the recycling of the capital. However, the municipality has decided to relocate the sorting centers, which is a brake on their activity.
Regarding water, since the end of 2019, the municipality of Pernik, at the foot of Mount Vitosha, is facing a water shortage, following a drastic drop in the water level of the dam that feeds it and a bad system of piping in the city. The inhabitants must be rationed in water. Will the rehabilitation work planned in the next two years and a 13 km connection to another dam be enough to solve this shortage?
The main economic resources
Agricultural production, which was a sector of strategic importance for Bulgaria, is in sharp decline due to industrialization. Sunflower, corn, beet and cotton dominate the production. Moreover, Bulgaria is the first producer of lavender in the world just before France! The good climatic conditions and the fertility of the soils are not enough to compensate for the chronic under-investment from which this sector suffers (old agricultural equipment, poor quality seeds...). This situation is attributable to the highly fragmented nature and small size of farms. The highly fragmented structure of land ownership makes it difficult for agriculture to be efficient and economically profitable.
However, the fast-growing sector is the textile industry, which has a strong European demand. The strengths of the Bulgarian clothing industry are its long-standing traditions, a skilled workforce, good quality products, a good price/quality ratio, short order turnaround times and a good geographical location in relation to European markets.
The minimum wage is 280 € per month, which is low compared to other European countries. Although the economic situation in the country is improving, corruption is still endemic and is a major obstacle to the development of Bulgarian society and its full democratization.
Foreign investment
The fact that Bulgaria has a low corporate tax rate (around 10%) and one of the lowest labor costs in Europe attracts foreign capital.
France ranks 10th among foreign investors, far behind the top three investors - the Netherlands, Austria and Greece - which together account for almost 40% of investments. According to the Bulgarian Investment Agency, the largest French investments were made by Société Générale, Danone, Air Liquide, Schneider Electric, BNP-Paribas, Dewavrin and Mecamidi. Among the largest French companies in Bulgaria are those mentioned above, as well as Carrefour, Mr.Bricolage and Emporiki Bank, a subsidiary of Crédit Agricole, Montupet (automobile equipment manufacturer) and Jetfinance, which was bought by Cetelem (consumer credit).
The Chinese are also investing in Bulgarian yogurt and the bacteria used to make it, which is produced in the Rhodopes. In Momchilgrad, close to the Greek border, you will understand why the Chinese writing is mixed with Cyrillic..
Finally, what you will not fail to notice during your trip through the country, is the presence of Lidl and Ikea.
The evolution of tourism
Tourism remains one of the major engines of the Bulgarian economy. The most numerous tourists come from neighboring countries, Greece and Romania, followed by Russians, Germans who are particularly fond of the Black Sea coast, and the British. The French come in 9th position. The sector is still expanding, if we exclude the two dark years related to the health crisis of Covid. The number of tourists is approaching 10 million per year.
The country stands out thanks to thermal tourism: the abundance of thermal waters and healing mud establishments rank Bulgaria among the top destinations in this sector. Another asset of the country is its orientation towards nature, sustainable and responsible tourism and, finally, recently, an increase in medical tourism has been observed.
In order to cope with the development of the different tourism sectors, Bulgaria is increasing its accommodation capacity and facilities. The good Internet coverage of the country is one of its undeniable assets, which also attracts teleworkers, who are increasingly numerous since the health crisis. The concreting of the Black Sea coast and the winter sports resorts is no longer an issue. The rehabilitation of old villages in remote areas is, on the other hand, booming.
