site.btaMedia Review: June 2

Tensions over the possible adoption of the euro in 2026 and Christo Grozev's allegations implicating a Bulgarian journalist in involvement in Russian propaganda are some of the main news stories on Monday.

EURO CHANGEOVER

In the morning talk show of Nova TV, economists Nikola Yankov and Georgi Vuldzhev clashed over Bulgaria's readiness to adopt the euro and over its possible effect on inflation. Vuldzhev warned that this country barely meets the fiscal criteria for eurozone membership, and this only through questionable accounting manoeuvres. He believes the worst outcome would be joining by way of a compromise. Yankov countered that Bulgaria's statistics are monitored by Eurostat and that this country has been ready for membership since 2007. He argued that the real issue was the eurozone's reluctance, not Bulgaria's readiness. In 2007, Bulgaria had plans to join alongside the Baltic states by 2009, and, as a country with a currency board arrangement, it was both economically and politically prepared.

The two economists also disagreed on where inflation is higher: Yankov said this is so in non-eurozone countries, while Vuldzhev claimed the opposite. Yankov said inflation stems from objective factors: large budget deficits, rising raw material prices, and internal factors like administrative increases in wages and pensions. In contrast Vuldzhev argued that eurozone accession itself acts as an inflationary factor.

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Dobrin Ivanov, Executive Director of the Bulgarian Industrial Capital Association, said on the Bulgarian National Television (BNT) that after the May 31 protest, he walked in downtown Sofia and saw modern buildings, some of them renovated with EU funds, spray-painted in red with slogans like "No to the euro" alongside the hammer and sickle. This made him realize that what he once considered a cliché - that adopting the euro is a civilizational choice- is actually true, and that introducing the euro in Bulgaria is the final step towards full integration with the European family.

Adrian Nikolov, Senior Economist at the Institute for Market Economics, stressed that the adoption of the euro should have been discussed from the beginning in economic and financial terms, since it is essentially a reform in monetary policy. The debate, however, quickly shifted to matters of identity and national values. For most of the public, the issue would not be particularly important if it had not been so heavily politicized. He noted that at least two political actors - the President and the Vazrazhdane party - have placed this issue at the heart of their political rhetoric.

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bTV asked sociologists Boryana Dimitrova and Dimitar Ganev to comment on recent protests claiming to defend the Bulgarian lev ahead of the June 4 convergence report. Dimitrova said the protests have mostly channelled an emotional outburst. For months, there has been a lack of clear information and no real political commitment from the parties backing eurozone accession. This vacuum has been filled with truths, half-truths and outright lies.

Ganev said that, in principle, a protest is meant to exert pressure, to push the government to make or change a specific decision. However, what lies ahead on the path to the eurozone does not depend in any way on decisions made by the government or Parliament.

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24chasa.bg has interviewed Prof. Daniel Valchev, Dean of the Faculty of Law of Sofia University, who talks at length about the President's proposal for a referendum on the adoption of the euro in 2026. He says the President has the right to propose referendums, and Parliament is obligated to either accept or reject his proposal. One thing is certain: neither the Parliament Chair nor a parliamentary committee can make that decision instead of Parliament. Valchev dwells on the motives for President Radev's proposal, saying it is a strategic political move aimed at several goals: first, to destabilize the ruling majority (though this failed); second, to marginalize the Bulgarian Socialist Party and absorb what is left of its voter base; third, to cast himself as the people's defender against the political elite, aligning public sentiment against Continue the Change co-leader Kiril Petkov, GERB leader Boyko Borissov and MRF-New Beginning leader Delyan Peevski; fourth, to provoke political tension, potentially paving the way for early elections before his term ends; fifth, to delay Bulgaria's eurozone accession and possibly to demonstrate that entry should happen on his terms. In Valchev's words, Bulgaria's accession to Schengen and the eurozone has never depended much on its readiness or political stability. While a certain level of meeting the membership criteria was monitored, in both cases the EU leaders decided that it was better for Bulgaria to be inside rather than outside.

Valchev opines that both the fears and the positive expectations regarding the adoption of the euro are greatly exaggerated. He stresses on the need that every significant future issue related to the EU's development should be put to a referendum, such as further enlargement with new members (including North Macedonia and Ukraine), revisions of the treaties, or a possible restriction on the use of cash.

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Interviewed by the Bulgarian National Radio (BNR), financial expert Boris Petrov said the currency board arrangement and having the lev pegged to the single European currency mean that Bulgaria has already reaped many of the benefits, and will benefit even more once it joins eurozone. The time to negotiate if and when the euro would be introduced was in 2005, when Bulgaria signed the EU Accession Treaty. Sofia did not raise these questions at the time, while Denmark negotiated an opt-out clause; however, the krone's exchange rate has been fixed against the euro for over 30 years. The biggest speculations are tied to the idea that the euro will push up prices, but the changeover resembles the redenomination of the lev in 1999, which did not lead to significant price increases.

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Former foreign minister Ivaylo Kalfin commented on BNT that there were doubts about the adoption of the euro even in Germany and France, especially since their currencies were quite strong at the time. The Bulgarian lev, however, is entirely dependent on the euro - Bulgaria has not managed its national currency since the currency board arrangement was introduced in 1997. Kalfin said it was normal to have doubts on the threshold of change, "as long as they do not turn into excesses and we do not destroy what has already been achieved".

PROPAGANDA SCANDAL

The news media cover allegations by Vienna-based investigative journalist Christo Grozev, who claimed in a Bulgarian National Television interview last week that he holds information implicating another Bulgarian investigative journalist, Dilyana Gaytandzhieva, in working for Russia's Main Intelligence Directorate (GRU) since 2016. Grozev said Gaytandzhieva worked for Unit 29155, responsible for the black ops of Russian intelligence. She called this a lie and said she was going to sue Grozev.

Mediapool.bg has a story headlined "GRU Hackers: Shocking Success on a Shoestring. Their Traces in Bulgaria?" which says Gaytandzhieva was mentioned in an investigation published by Grozev, Dobrokhotov and Michael Weiss in The Insider, titled "The Hidden Bear: The GRU hackers of Russia's most notorious kill squad". Speaking to BNT, Grozev said members of that GRU unit were involved in a campaign to discredit arms manufacturer Emilian Gebrev following his novichok poisoning in 2015. 

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24 Chasa has extensive coverage of Grozev's allegations and Gaytandzhieva's reaction. He claimed that Russia's GRU Unit 29155, known for assassinations, also conducts disinformation operations, spreading lies through media outlets. To be credible, the narratives had to appear in non-Russian, preferably Western, media. He linked the unit to bombings at military depots in Czechia and Bulgaria between 2011 and 2019, which are under investigation. According to Grozev, since 2016 the unit has worked with journalists worldwide, including Gaytandzhieva, then a war correspondent for the Trud daily. One of her reports from Syria claimed Bulgarian weapons were found with rebels. Russian investigative journalist Roman Dobrokhotov said her stories, including those about Bulgarian arms reaching Syria, were used to legitimize disinformation: "Russian propaganda then amplified these reports, needing a European journalist to publish them first, since Russian media lacked credibility." Grozev said coordination with Gaytandzhieva happened via a private Twitter chat.

Grozev and Gaytandzhieva acknowledge knowing each other. They admit to past online conflicts. She said Grozev had commented negatively on her tweets. "This is not the first time he has linked my name to GRU. He made similar claims before, and I disproved them with documents showing his publication contained false information."

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Interviewed by Nova TV, political analyst Slavi Vasilev said Russia's influence in Bulgaria is greatly overestimated. The investigative journalists' arguments lack depth and the very idea of penetrating unsecured GRU servers is implausible. He said it was unfair to use unproven claims to condemn a Bulgarian journalist who has conducted serious investigations into Bulgarian-made weapons ending up in Syria. Vasilev said Gaytandzhieva told him on Sunday she herself discovered that diplomatic flights had been used to export the weapons. The analyst also said there are no pro-Putin forces in Bulgaria and the President is pro-Bulgaria.

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Trud Editor-in-Chief Petyo Blaskov says in an emotionally charged commentary that Dilyana Gaytandzhieva was denounced on BNT in what was presented as an investigation into foreign collaborators of Russian intelligence: "Grozev and Dobrokhotov claim that many idiots work in Russian intelligence who had left behind old servers, from which they supposedly gathered evidence of Gaytandzhieva's ties to GRU." He argues that financing the two investigative journalists was a waste of money, and adds that he himself gave Gaytandzhieva her start in journalism nearly a quarter of a century ago.

ECONOMY

Interviewed by BNR, Bulatom Executive Secretary Stanislav Georgiev said the most pressing issue for Bulgaria's nuclear energy sector now is the construction of Units 7 and 8 at the Kozloduy Nuclear Power Plant. Regardless of all the talk about renewables, once the thermal power plants are shut down and Units 7 and 8 are built, the time will come to shut down Units 5 and 6. By then, Bulgaria must be ready with two replacement units - this is the role of Belene, Georgiev stressed, referring to Bulatom's projections through 2060. He said the equipment intended for the Belene NPP project is by no means outdated - similar equipment would now cost two or three times more. He said the decision to keep the two reactors [instead of selling them to Ukraine] was a good step. The Bulgarian Atomic Forum (Bulatom) will hold an international nuclear conference on June 4-6 with participants such as Westinghouse and Hyundai, potential subcontractors for the future plants, including Framatome and Siemens, and guests from Russia, though in a limited capacity. A representative from Rosatom is expected to attend, Georgiev said, adding that the most critical spare parts for Kozloduy are still being supplied from Russia.

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Delyan Peevski has filed a complaint with the competition watchdog asking for a thorough investigation into the activities of Lukoil Neftohim Burgas and Lukoil Bulgaria, including the import, refining and distribution of fuels, as well as relationships with other market players. The complaint alleges there is a cartel agreement. Allegedly, fuel is imported solely by Lukoil with the consent of other players, which limits competition and pushes up fuel prices for individuals and businesses.

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24chasa.bg warns that private companies responsible for recycling household electronic waste, ranging from laptops to refrigerators and solar panels, are planning to raise their fees by 700-900% - a tenfold increase - from July. This could lead to a 5% price hike for appliances like washing machines and ovens, and even more for refrigerators, according to importers and retailers. In the past two weeks, licensed collective recycling organizations have simultaneously announced this spike in fees affecting producers and importers of household appliances, the Bulgarian Association of Electrical Engineering and Electronics (BASEL) reports.

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Trud reports that eco fees on cars in Bulgaria are set to rise by up to 24%, particularly affecting older vehicles with internal combustion engines. Higher fees will be paid on the first registration of a vehicle, according to a draft amendment to the regulation on product tax payments, currently open for public consultation. The biggest increase applies to cars over 10 years old, with the eco fee rising to BGN 385 from BGN 310 now. The fees on new electric vehicles remain unchanged.

BULGARIA-TURKIYE

Trud reports that Turkish Ambassador Mehmet Sait Uyanik gave his first interview since the beginning of his term to BNT on May 31. He discussed several key topics including transport connectivity, the Bulgargaz-BOTAS gas supply agreement, tourism and trade.

He said transport infrastructure is a top priority in Ankara-Sofia relations. It plays a critical role in Turkish exports to Europe. The Kapitan Andreevo border crossing is now the busiest in the world, surpassing even the US-Mexico crossing, with 4.5 million vehicles passing through it last year. He identified a need to strengthen and expand border infrastructure.

Regarding the BOTAS-Bulgartransgaz agreement, the diplomat said the agreement was signed during the energy crisis caused by the Russia-Ukraine war. It was intended as a gesture of support from Turkiye to Bulgaria. The ambassador stressed that he cannot comment on the specific terms, as they are considered trade secrets. He acknowledged the public debate around the deal and emphasized that Turkiye is approaching the issue with goodwill, looking for constructive solutions in light of the strong bilateral friendship.

Bulgaria is currently trying to renegotiate the contract, which was signed in January 2023 under the caretaker government of Galab Donev. The agreement requires monthly payments of over USD 480,000 by Bulgargaz, regardless of whether the capacity is used. There is no exit or renegotiation clause.

The topic was not discussed during a May 31 a telephone conversation between Presidents Rumen Radev and Recep Tayyip Erdogan.

ANALYSIS

Trud has an analysis of Russian geopolitics by Borislav Tsekov, political analyst and associate professor of constitutional law. He argues that Russian political culture has rested on two pillars for centuries: autocracy at home and plunder abroad. They are deeply rooted principles, embedded since the time of the Muscovite principality, reinforced during the imperial era, and revived nowadays in the form of a neo-Eurasian geopolitical strategy. He maintains that Russia's conquest of lands and peoples is not an expression of civilizational superiority or a transfer of constructive models, but a desperate need for external resources. Russia's colonial policy in Asia did not give rise to a class capable of envisioning the future, create a market or foster cultural development. Instead, it produced administrative subjugation, political terror, and economic stagnation. Russia is not Spain in Latin America, not Britain in India, not even France in Algeria - however contradictory those examples may be, they at least contain some notion of transferring political institutions, civilizational models, or technologies to the colonies. Russia is unique in that it colonizes without vision. It ravages conquered lands and extracts only those local resources that are easily accessible and do not require significant societal capacity.

SOCIETY

Trud has interviewed Martin Atanasov, an 18-year-old school student, who designed an interactive black spot map showing Bulgaria's most accident-prone locations. The project took him just a month and a half. The map exposed the indifference of ministries and agencies that are legally responsible for ensuring road safety, the interviewer says. Anyone can view the map on their smartphone, tablet, or computer, provided that it has not been hacked.