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                                                                                        Updated  April16, 2021

Bulgaria: An Overview


Bulgaria is a southeastern European country located along
the Black Sea. After decades of single-party communist
rule and a turbulent transition period during the 1990s,
Bulg aria joined NATO in 2004 and the European Union
(EU) in 2007. The United States cooperates with Bulgaria
on arange of security is sues. At the same time, U.S.
officials have urged Bulgaria to strengthen the rule of law.

Domestic Background
Bulgaria is aparliamentary democracy. Theprime minister
leads the government, and a directly elected president
serves as head ofstate. The National As sembly (Narodno
sab ranie) is a unicameral legislature with 240 members.
After 12 years of near-continuous rule under Prime Minister
Boyko  Borisov and his center-right Citizens for European
Development  of Bulgaria (GERB), Bulgaria experienced a
period of uncertainty following parliamentary elections held
on April 4, 2021. GERB and its main rival, the Bulgarian
Socialist Party, placed first (26%) and third (15%),
respectively, but hadtheir weakestresults in years.

Propelled by dis satisfaction with the status quo, three new
political groupings won around one-third of the vote. The
populist There is Such a People (ITN), led by singer and
TV  entertainer Stanislav Trifonov, placed second (18%).
Democratic Bulgaria and Stand Up, Mafia Out, which were
involved in a wave of anti-corruption protests in 2020, won
nearly 10% and 5% of the vote, respectively. The
Movement  for Rights and Freedoms, a party predominantly
supported by ethnic Turkish voters thathas often had a
kingmaker role in Bulgarian politics, won 11% of the
vote.

The fragmented results may make it difficult for any party
to form a government. Although GERB will have the first
opportunity to do so, most otherparties have indicated they
will not supportit. The mandate to forma government
would then pass to ITN. Otherpossible scenarios include a
caretaker government and early elections.
The next government faces an array of policy challenges,
including mitigating thehealth andeconomic impacts of the
Coronavirus Disease 2019 (COVID-19) pandemic,
addressing public pres sure to tackle corruption and
organized crime, and managing Bulgaria's external
relations amid escalating tensions in the Black Sea region.

Corruption   and Rule-of-Law  Concerns
Corruption, organized crime, and rule-of-law challenges
intensified during Bulgaria's turbulent economic and
political transition in the 1990s. Due to concern that these
issues hadnotbeenfully addressed at the time ofBulgaria's
EU  acces sion in 2007, Brussels continues to monitor the
country's reformprogress through a transitional
Cooperation and Verification Mechanism.


Although EU assessments note some progress in Bulgaria's
anti-corruption and rule-of-law efforts, core challenges
persist. For severalyears, Bulgaria has ranked last among
EU  member states in Transparency International's annual
Corruption Perceptions Index The U.S. State Department's
2020 Investment Climate Statement for Bulgaria describes
corruption as endemic, particularly onlarge infrastructure
projects and in the energy sector and in public
procurementanduseofEU funds.   The influenceof
oligarchs and criminalgroups over some decisionmaking
processes and s tate ins titutions also is a concern.
The outgoing government was weakened by multiple
alleged corruption scandals involving GERB officials.
These allegations prompted a wave of anti-corruption
protests in mid-2020.


Source: Map and graphic created by CRS.
Rule-of-law challenges and a weak media environment
complicate efforts to combat corruption and organized
crime. The judiciary is one of Bulgaria's least-trusted
institutions. Among other recommendations, external
assessments have called for measures to strengthen judicial
independence and increase the accountability of the
prosecutor general, one of the country's most powerful
positions. Media watchdog groups caution that Bulgaria's
media environment is deteriorating. Bulg aria had the worst
score among EUmember   states in Reporters Without
Borders' 2020 World Press FreedomIndex, which
described a media environment marred by corruption and
collusion between media, politicians, and olig archs.

Economy
The World Bankclassifies Bulgaria as an upper-middle
income country. Bulgaria experienced robustGDP growth
during the 2000s, following economic reforms and deeper
EU  integration. Although the economy struggled in the
aftermath of the 2008 global financial cris is, recent annual
GDP  growth has been around 3% to 4%. As elsewhere,
COVID-19  has adversely impacted the Bulgarian economy.
GDP  contractedby an estimated 4% in 2020.


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