site.btaMedia Review: July 21

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24 Chasa reports that GERB leader Boyko Borissov criticized President Rumen Radev and Vice President Iliana Iotova on Sunday, urging them to contact their US counterparts to address the "minor issues" regarding Donald Trump's proposed new tariffs, rather than accusing the government of staying silent on the matter. Speaking in Plovdiv at a youth forum on artificial intelligence, Borissov admitted that he does not like all ministers but emphasized the need for a regular government to handle key issues like the euro changeover, price stability and the potential economic impact of a tariff surge on August 1. He said he is ready for elections but believes stability is more important right now.

At the same event, Prime Minister Rosen Zhelyazkov said the only viable coalition government is the current one led by GERB. He warned against attempts to destabilize the government and "revolutionize" the situation. Zhelyazkov highlighted several achievements: Bulgaria managed to recover EU Recovery and Resilience funding that had been unused for four years, increased foreign direct investment by nearly 50%, and saw a 15% rise in tax revenue. He noted that some BGN 30 billion are being kept in cash by citizens rather than in bank accounts, and warned that injecting this money into the economy, especially during the transition to the euro, could push up prices and inflation. He said a "shadow segment" of the economy fears the adoption of the euro. The government's inflation target for this year is 3%.

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Interviewed by the Bulgarian National Radio, political analyst Ognyan Minchev commented that a political crisis could happen if the relationship between GERB leader Boyko Borissov and MRF-New Beginning leader Delyan Peevski, who backs the government coalition, deteriorates in the context of the current political tensions. At present, there are three main political figures in Bulgaria who are vying for power, the analyst said. "The most powerful is Peevski, who ended the hegemony of Ahmed Dogan and the old Movement for Rights and Freedoms (MRF), establishing a political and corporate entity subordinate to him. By supporting the government, he holds the entire governing structure of Bulgaria hostage." The second figure is Boyko Borissov, who is trying to maintain the delicate balance that allows him to preserve his influence and power. The third is President Rumen Radev. The competition among these three figures helps prevent an authoritarian consolidation of the political system, according to Minchev.

The analyst sees a new stage in the political crisis that began in the summer of 2020. He describes this period as a second attempt since 1989 to build an alternative political and economic elite in Bulgaria. The first attempt was the rise of the Union of Democratic Forces in the 1990s, which was derailed by the return of Simeon Saxe-Coburg-Gotha, who established the Simeon II National Movement and became prime minister in 2001. The current attempt centres on Continue the Change and its uneasy alliance with Democratic Bulgaria, now confronting the political and economic elite of the status quo.

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Segabg.com has a story on the expiring term of acting Prosecutor General Borislav Sarafov.  Amendments to the Judicial System Act adopted in January limit the period during which someone can serve as acting Prosecutor General to six months. A new Supreme Judicial Council (SJC) was supposed to be elected by July 21. That council, in turn, was expected to elect a new Prosecutor General and a new President of the Supreme Administrative Court (SAC). None of this has happened. However, just a few days ago, the SJC's Prosecutors Chamber decided that the six-month limit does not apply to Sarafov, arguing that it has no retroactive effect and he may stay in office as acting Prosecutor General - a position he has held since June 2023.

Interviewed by bTV, former justice minister Krum Zarkov commented that as of July 22, the service of Borislav Sarafov as acting Prosecutor General and of Georgi Cholakov as acting SAC President will be in breach of the law. The six-month limit is necessary, according to Zarkov, because under the Constitution, the top magistrates (including the President of the Supreme Court of Cassation) are not elected by the SJC, but are appointed by the President on the Council's proposal. The very concept of "acting holder" of these position is problematic as it circumvents this presidential power. In Zarkov's words, the Judges Chamber quite rightly took a completely different approach and proceeded with the election of a new acting SAC President.

COMMENTS ON VARNA MAYOR'S ARREST

More analysts commented on Monday on the arrest of Varna Mayor Blagomir Kotsev on July 8 following a corruption tipoff. He was charged with participation in an organized criminal group engaged in abuse of office and money laundering.

Yes, Bulgaria co-leader Ivaylo Mirchev MP of Continue the Change - Democratic Bulgaria (CC-DB) told bTV on Sunday the Counter-Corruption Commission (CCC) has a list of 88 mayors from CC-DB targeted for attack. When asked where this information came from, he replied: "It is our job to have such information." Mirchev then urged the head of the Counter-Corruption Commission to state publicly if the list is real and if he talks with Delyan Peevski. When asked about Democratic Bulgaria's demand to abolish the CCC, Mirchev said the party had been against granting it investigative powers, while their coalition partners Continue the Change were in favour. "Kotsev's case shows the CCC has become a tool for targeting opposition politicians. There is undoubtedly a corruption problem in Bulgaria and such an institution is needed in principle. In Romania, a similar institution was not captured by criminal elements and worked in the interest of the state. In Bulgaria, the institution serves primarily the interests of Delyan Peevski and Boyko Borissov," said Mirchev. Asked what would happen if the commission was abolished, he said there would still be enough institutions to fight corruption, "but at least there will not be a bludgeon used to crack down on the opposition".

In Monday's interview with the Bulgarian National Television (BNT), Mirchev called Kotsev's arrest "a politically motivated order" given to Counter-Corruption Commission head Anton Slavchev by Delyan Peevski. Next, Mirchev expects attacks against Sofia Mayor Vassil Terziev on the grounds of his decision to change the bank managing the capital's funds.

In a BNT interview, political analyst Georgi Harizanov challenged Mirchev to show the list of 88 CC mayors, apparently expressing doubt if this is the real number of mayors backed by Continue the Change and if the list exists at all.

Interviewed by bTV on Monday, lawyer Nikolay Hadjigenov said the case against Blagomir Kotsev is being heard in Sofia in accordance with the law. He stressed that what is more important, the courts in both Varna and Sofia found sufficient grounds to suspect involvement in criminal activity at this early stage of the proceedings, which led to his remand. Commenting on the protests sparked by Kotsev's detention, Hadjigenov said the rallies were politically motivated, although the protesters are not all sympathizers of Continue the Change. Some believe that these are rallies for justice, the problem is they are not calling for justice for all, but for "our guys", which is altogether wrong. Claims by a political force like Continue the Change, which wants to reform the judicial system, that Delyan Peevski controls the judges hearing Kotsev's case shows a total lack of knowledge of the judiciary, according to the lawyer.

In the same interview, political analyst Petar Cholakov said the leaders of Continue the Change did not rise to the challenge of combating the GERB-MRF governance model.

Nova TV also had a panel of analysts and journalists discussing Kotsev's arrest as the centre of political tension. Political analyst Georgi Harizanov believes the protests are justified, calling them "a result of the widespread public perception that the judicial system is used selectively." Analyst Lyubomir Stefanov said society is fighting for justice. A key aspect of the public discontent is whether the protest will grow and shift into working hours to show its weight. He stresded that Blagomir Kotsev was labelled guilty before a court hearing had even taken place. Political analyst Svetlin Tachev said the key issue is whether the protests will expand. The ongoing status quo vs. change battle offers an opportunity to mobilize people from across the political spectrum. In his view, the government gave Continue the Change a historic chance to return to that central battle after a period of deadlock, when CC were supporting the government about eurozone accession while trying to cast themselves as the opposition.

ECONOMY

Citing the Energy Ministry, Trud reports that during a working visit to Washington, DC, Energy Minister Zhecho Stankov secured agreements with leading figures from the US technology and energy industries on building AI gigafactories and modern data hubs near the Kozloduy Nuclear Power Plant. In meetings with executives from Meta, the Clean Energy Buyers Association (CEBA), and IP3 Corporation, Stankov highlighted the region's competitive advantages, including access to stable, long-term, zero-emission energy, fibre-optic connectivity and the water resources of the Danube for cooling.

Duma leads with a story about an increase in the poverty rate by 1.1 percentage points to 21.7% in 2024 from a year earlier.

FINANCE

Capital looks into the possible impact of Bulgaria's entry in the eurozone on lending interest rates. With the phasing out of the Bulgarian lev, most banks will need to revise the reference indices for floating-rate loans. Bulgaria's five largest banks told the Capital daily they are not planning major changes or a shift to Euribor. Instead, they will transition from lev-based to euro-based deposit rates, using data from the Bulgarian National Bank. Despite the sharp rise in interest rates by the European Central Bank in 2022-2023, which were felt strongly in many eurozone countries, Bulgarian borrowers were largely unaffected. Loan repayments remained near record lows, making Bulgaria one of the EU countries with the lowest mortgage rates. This favourable lending environment is expected to remain stable even after the euro is adopted in January 2026, with no sharp changes in interest rates anticipated.

In 24 Chasa, Tamas Hak-Kovacs, Chairman of the Management Board and CEO of DSK Bank, offers advice ahead of the euro changeover. He says: "We do not expect an increase in lending interest rates following the introduction of the euro. There is no reason to rush into taking out a loan now out of concern that credit conditions will worsen next year. Bank fees will not increase either." He stresses that the introduction of the euro will have no adverse financial impact on customers.

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In Trud, financial expert Dimitar Chobanov comments on Bulgaria's second round of sovereign bonds on international capital markets, following the approval of the country's eurozone accession and a subsequent credit rating upgrade. Two tranches were offered: EUR 2 billion with a 10-year maturity and 3.375% interest, and EUR 1.2 billion with a 20-year maturity and 4.125% interest. Chobanov argues that issuing shorter-term bonds under current market conditions could have saved the country EUR 430.8 million. He raises concerns about Bulgaria's rising debt-to-GDP ratio without clear prospects for economic acceleration.

He attributes the growing deficit to inefficient budget spending, overstaffed public administration, poor asset management and lack of competitive procurement. The need for structural reforms is evident, but eurozone membership will likely buy politicians some more time. 

Chobanov notes that debt is growing much faster than the economy, a trend expected to continue at least until 2028 (according to the midterm fiscal plan), aggravated by growing social spending demands and Bulgaria's NATO commitment to increase defence spending to 5% of GDP by 2035. He cautions that frequent large debt issuances could become the norm, but investor interest may decline once the novelty of eurozone accession wears off. The current strong demand likely stems from both the euro announcement and the attractive returns relative to Bulgaria's credit risk, which benefit creditors but mean higher financing costs for the country. The expert warns that proceeds from this latest bond issuance go beyond what is needed to cover 2025 obligations and the deficit, suggesting over-borrowing. The excess funds are planned for increasing the capital of state-owned enterprises to support investment, raising concerns about long-term debt sustainability.

EDUCATION, SCIENCE

Trud cites a Facebook post by economics professor Boyan Durankev, who says two Bulgarian universities, Medical University - Sofia and the St. Kliment Ohridski Sofia University, have been ranked among the best in the US News & World Report global university rankings. The list includes 2,250 research universities from 105 countries, based on 13 research indicators and a survey of academic reputation. Harvard University topped the ranking with a perfect score of 100, leading in areas such as global research reputation, publications, total citations, and the number of highly cited papers. Durankev mentions a chronic crisis in Bulgarian education and the Education and Science Ministry, and comments that while Bulgarian universities often receive high marks in national accreditation, their position in global rankings remains below average.

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In a Trud interview, Prof. Milen Zamfirov talks about new genetic mutations linked to autism spectrum disorders, as published in the international, peer-reviewed journal Cells (MDPI). He talks about his team's research into the impact of solar activity cycles and of prenatal infections such as Lyme disease (contracted and diagnosed during the mother's pregnancy), which can mimic autism symptoms. Prof. Zamfirov's team found a correlation between reduced solar activity and increased autism births in a 20-year study of thousands of children in Bulgaria. Their goal is to develop prenatal diagnostic methods to identify these genetic mutations early, enabling prediction of autism risk before birth. As part of the study, the team analyzed genetic material from 22 Bulgarian patients diagnosed with autism spectrum disorder. While the sample size may seem small for drawing broad conclusions, the scientist explains that this pilot study provides a clear research direction. The participants were examined using an advanced and costly genetic testing method, carried out in partnership with a specialized laboratory.

COCAINE SEIZURE

24 Chasa reports that a Belgian Malinois dog named Raya, born in Bulgaria in 2023, detected a record 206 kg of cocaine hidden in a diplomatic vehicle at the Kapitan Andreevo checkpoint on the border with Turkiye on July 18. The drug haul, valued at over BGN 37 million, marks Raya's first major seizure as a sniffer dog. During an operation code-named "Orient Express", Raya alerted officers checking a diplomatic car attempting to cross into Turkiye. An X-ray scan revealed five suitcases containing 179 packages of cocaine. Three persons were travelling in the vehicle: a 43-year-old Bulgarian driver, a 40-year-old Congolese national with a diplomatic passport accredited to Belgium, and a 54-year-old Belgian woman. The Bulgarian and the Congolese man were detained for 72 hours. The charges carry 15 to 20 years in prison and a fine between BGN 200,000 and 300,000 upon conviction.