site.btaMedia Review: June 3

EUROZONE CHANGEOVER

On Bulgarian National Television's morning show, European Commission Senior Expert Ognyan Zlatev said that Bulgaria's entry into the euro area would be a victory for all citizens of the country. He noted that he was in Croatia when the country joined the euro area and Schengen: "The process in Croatia has gone quite smoothly, without any shocks. Naturally, in the months leading up to the actual date of January 1, 2023, there were a lot of fears. That is the way it is, whenever you are faced with something new, it is a very human and normal reaction to be quite reserved, even scared," Zlatev said. On the eve of Croatia's eurozone entry, the situation was similar to the situation in Bulgaria, but the extensive and targeted information campaign on the issue was of great help.

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On Nova Television's morning show, There Is Such a People Deputy Floor Leader Stanislav Balabanov said that five years after joining the eurozone, income growth in Lithuania is 115% and inflation - 2.2%. The Bulgarian Government's main task, if the euro adoption is confirmed, is to inform and reassure citizens, the MP added. He highlighted that while Vazrazhdane MPs speak against the adoption of the euro, the savings of many of them are in this very currency. “Among the positives of joining the eurozone are the increase in incomes, as well as the growth of foreign investment,” he added. Balabanov also commented President Rumen Radev's proposal for a referendum on the euro adoption in 2026: "Some time ago [Vice President Iliana] Iotova and Radev were saying how good it is for Bulgaria to join the eurozone, now maybe with a political motive they have changed their minds. Their messages rather discourage and divide society", he believes.

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On bTV's morning show, former deputy prime minister Meglena Plugchieva (Bulgarian Socialist Party, 2008 - 2009) said that Bulgaria is about to join the Eurozone “at the most inopportune moment”. “It's a political decision that is taken mainly in Brussels and is wrapped in the cellophane of fulfilled criteria,” she argued. “The EU is currently suffering from a lack of leaders and from an excessive arrogance, from fear of [Russian President Vladimir] Putin and [US President Donald] Trump, and the economic situation is not rosy at all, we pay little attention to that,” Plugchieva added.

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On Bulgarian National Television's morning show, Deputy Prime Minister Atanas Zafirov said he expected a positive and objective convergence report on Bulgaria's accession to the euro area. He gave clarity on what are the other goals and priorities of the Government: “We have written it in our programme from the very beginning - economic stability, re-industrialization, social security of the Bulgarian citizens, raising incomes, reducing social inequalities, fighting the demographic crisis. A closer strategic goal is our accession to the Organisation for Economic Cooperation and Development."

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24 Chasa features an interview with media expert Assoc. Prof. Georgi Lozanov. He underlined that after the anti-government protests in 2020, Bulgaria has climbed from 113 to 59th place in Reporters Without Borders's World Press Freedom Index. "Those in power began to change frequently and lost their self-confidence. Apparently they have now got it back - especially the unregulated one, which has led to a drop in the rankings of 10 places. The change can be seen in the fact that political leaders in power refuse to answer tough questions in the studio, and give at will something like briefings on the sidelines of the National Assembly, where journalists are forced to scramble to barely get an answer to a question, with no right to another," he noted. Commenting on the political situation, Lozanov noted that President Radev's attempt to initiate a referendum on the euro adoption in 2026 was unsuccessful, but expects tensions on this topic to continue to rise. "The question whether we are ready for the euro is hollow. First, because with the financial board we have long been tied to the euro. Second, because it has long been answered in our treaty of accession to the European Union. But now it is being taken out in the panicky hope of delaying as much as possible the completion of our euro integration. Which is the transparent aim of ‘big brother’ from the East," he said.

POLITICS

Trud features an extensive interview with political scientist and former Bulgarian Socialist Party MP (2013 - 2014) Tatyana Burudzhieva. She commented on President Rumen Radev's statement that soon there will be a new political alternative in Bulgaria, which according to her means that speculations about a new party headed by the current head of State will soon become reality. She is adamant that for a long time the President has been entering the field of political leaders instead of being a statesman. "So far, his messages are to two groups - one is to the radicals because it is logical that they should be more active when there is talk of change and seeking to secape all the bad that has been created by politicians so far. On the other hand, however, all these statements that he is working for democracy and that he is the only one who will strengthen democracy in Bulgaria are directed at the right-wing," Burudzhieva said. She noted that presidents' attempts to transition to party leaders have historically rarely been successful.

ECONOMY

On bTV's morning show, Center for the Study of Democracy energy expert Martin Dimitrov commented on Movement for Rights and Freedoms - New Beginning Floor Leader Delyan Peevski's request to the Commission on Protection of Competition (CPC) to investigate whether there is a fuel cartel in Lukoil Neftochim Burgas. Vladimirov said caution should always be exercised when there are investigations on political requests. He recalled that in 2023 the CPC already fined Lukoil BGN 260 million and that the amount is being appealed.  “We have spoken many times that there is some protection from the institutions, both judicial and regulatory, towards the monopolist in the Bulgarian fuel market,” he noted. Association of Bulgarian Traders, Producers, Importers and Transporters of Fuels Chair Dimitar Hadzhidimitrov argued that the request for a probe is not justified. However, according to Vladimirov, the problem is not the cartel, but Lukoil’s dominant position on the market, as has already been established by the CPC over the years. "In the wholesale market, we have practically no competition. The Neftochim refinery produces most of the fuel for consumption in the country, and holds most of the warehouses, with the Lukoil Bulgaria subsidiary. When Bulgaria was importing Russian oil - according to our calculations, over 90% of the wholesale market was controlled by Lukoil or related companies," he added. According to Hadzhidimitrov, it is a big plus that there is a refinery on the territory of the country because the consumer gets a good price. Vladimirov countered that prices could be much lower, giving the example of Lithuania.

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The Bulgarian National Radio quoted analyses in the brokerage agencies, which show that the interest of Bulgarians to buy property in Northern Greece is increasing after the country entered Schengen by land. In Thessaloniki, Bulgarians are mainly buying apartments for rent. They are looking for neighbourhoods where there is demand from tenants. The area around Kavala also draws interest for investment by Bulgarians. Properties are bought mainly with the interest of owners' holidays, but also with the possibility of seasonal rentals.

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The Telegraph reports that the first private passenger trains in Bulgaria will come into use from December 13, 2026, and their owners will operate on a maximum profit margin of 5%. In the tender to choose a carrier, national company BDZ will compete with private carriers for the first time. The express trains must achieve an average speed of at least 80 km/h and will only serve cities with a population of more than 20,000 and/or those located at crossroads stations. This market segment does not currently exist in Bulgaria as there is insufficient rolling stock available to operate this type of service. Express trains will run on four routes - Sofia-Varna, Sofia-Burgas, Sofia-Petrich and Gorna Oryahovitsa-Ruse.

DEFENCE

24 Chasa reports that there are 243 operational bomb shelters in Bulgaria, which accommodate only 70,000 people. The remaining 373 are in poor condition and uninhabitable, with none in 6 regional cities. 30 of the premises (with a total capacity of 11,303 people) can be used immediately, while the rest are in satisfactory condition and can be made ready within a week.

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Mediapool features an article on the differences in the modernization of the combat aircraft of Bulgaria and Romania, which until recently relied only on old Soviet fighter jets. The two countries chose different strategies, with Romania moving considerably faster. Bulgaria purchased new F-16 Block 70 fighters, of which only one has been delivered to date, while Romania chose to invest in far cheaper second-hand F-16 fighters. “Our northern neighbour has thus prepared the transition to the acquisition of F-35 fighters, while Bulgaria has no such option and will rely on F-16s for the next 30 years at least,” the media outlet writes. Romania no longer uses Soviet fighters, while Bulgaria will continue to rely on MiG-29s for years to come. Challenges lie ahead, however, and Bulgaria has already faced some of them - pilot training, infrastructure and significantly increased costs. Romania already has considerably more experience that Bulgaria can draw on. Romania has a pilot training centre, which opens up opportunities for the Bulgarian Air Force. Both countries are part of NATO's eastern flank and strengthening it goes through active cooperation between them. The first six Romanian F-16s (purchased from Portugal) landed at the 86th Fetesti Air Base (Borcea) in September 2016. The Romanian F-16s started full operations and airspace protection missions in spring 2019. This is also indicative of the future of the Bulgarian Air Force. By the end of the year, it should receive a total of 8 F-16s out of 16 purchased. However, this does not mean that Bulgaria will immediately give up the old MiG 29 machines. According to expert estimates, Bulgaria will also need at least two years to fully absorb the F-16s. The Bulgarian Ministry of Defence claims that there will be enough trained pilots for the F-16, but experts doubt it. According to unofficial information, there have been Bulgarian pilots who have failed to complete the training and have been returned from the US, the article reads. Bulgaria is expected to have 14 trained F-16 pilots by the end of next year. Pilot training will continue after that. Bulgaria also has a very significant problem with the infrastructure to use the aircraft. They are housed at Graf Ignatievo Air Base but its refurbishment and modernization has been drastically delayed and is still not ready. The repair of the airbase was supposed to cost EUR 150 million, but it is getting significantly more expensive and no one can calculate how much it will cost in total. According to various sources, the total cost has already reached EUR 350 million.

JUDICIARY

In an interview with the Bulgarian National Radio (BNR), Institute for Market Economics (IME) legal expert Ekaterina Baksanova said that in Bulgaria there is a serious problem with protecting the independence of the individual judge. "Recusals are a guarantee for a fair trial. When a judge recuses himself, it should be on the basis of very specific circumstances and not just by reference to the text of the law," she stressed. IME has examined the electronic public register, which has recorded over 25,000 recusals in the last year. Almost all of them contain only a reference to the provision in the law, and this is a significant problem, she noted. Baksanova underlined that the lack of reasoning leaves the public with the perception that the court is resorting to recusal from a case because of pressure, fear or inconvenience. “The state lacks infrastructure and mechanisms for judges to feel protected,” she said.