Economy of Bulgaria
Business Park Sofia
Rank	74th (nominal) / 66th (PPP)
Currency	1 Bulgarian lev (BGN) = 100 stotinki
Fiscal year	Calendar year
Trade organisations	EU, WTO, OSCE and BSEC
Statistics
GDP	$54.3 billion (nominal)[1] (2011) $101.036 billion (PPP)[1] (2011)
GDP growth	1,6% (2011)
GDP per capita	$7,202 (nominal)[1] (2011) $13,597 (PPP)[1] (2011)
GDP by sector	Agriculture (7.5%), industry (27.6%), services (64.9%) (2009 est.)
Inflation (CPI)	4% (2011)[2]
Population below poverty line	14% (2008)
Gini coefficient	45.3 (2007)
Labour force	3.2 million (2009 est.)
Labour force by occupation	Agriculture 7.5%, industry 36.4%, services 56.1% (Q1 2008)[3]
Unemployment	12.6 % (April 2012)[4]
Average gross salary	754 BGN (March 2012)[5] 509 $ (March 2012)[5]
Average net salary	591 BGN (March 2012)[6] 400 $ (March 2012)[6]
Main industries	Electricity, gas and water; food, beverages and tobacco; machinery and equipment, base metals, chemical products, coke, refined petroleum
Ease of Doing Business Rank	59th[7]
External
Exports	$26.08 billion (2011)[2]
Export goods	clothing, footwear, iron and steel, machinery and equipment, fuels
Main export partners	Germany 10.9%, Italy 9.9%, Romania 9.5%, Greece 8.1%, Turkey 7.9%, France 4.1% (2010)
Imports	$28.39 billion (2011)[2]
Import goods	machinery and equipment, metals and ores, chemicals and plastics, fuels, minerals, and raw materials
Main import partners	Russia 16.3%, Germany 11.8%, Italy 7.5%, Romania 7.1%, Greece 6%, Turkey 5.2%, Ukraine 4.2% (2010)
Gross external debt	$36.15 billion (2010)
Public finances
Public debt	22.4% of GDP (2011 est.)
Revenues	$19.11 billion
Expenses	$20.69 billion (2009 est.)
Economic aid	$475 million (2004-06)
Credit rating	BBB (Domestic) BBB (Foreign) A (T&C Assessment) (Standard & Poor's)[8]
Foreign reserves	US$17.781 billion (April 2011)[9]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

The economy of Bulgaria functions on the principles of the free market, having a large private sector and a small, but strong^{[citation needed]} public sector. Bulgaria is an industrialised upper-middle-income country according to the World Bank with a gross national income per capita of US$ 6,280 in 2010.^[10] It has experienced rapid economic growth in recent years^[update], even though its income level remains one of the lowest within the EU with an average monthly wage of 752 leva (384 euro).^[11]

Since 2001, Bulgaria has managed to attract considerable amounts of Foreign Direct Investment (FDI). During the Financial crisis of 2007–2010, Bulgaria marked a decline in its economy of 5.5% in 2009, but quickly restored its positive growth to 0.2% in 2010, in contrast to other Balkan countries.^[12]

The currency of the country is the lev (plural leva), pegged to the euro at a rate of 1.95583 leva for 1 euro.^[13] The lev is the strongest and most stable currency in Eastern Europe.^[14][15] The strongest sectors are energy, mining, metallurgy, machine building, agriculture and tourism. Primary industrial exports are clothing, iron and steel, machinery and refined fuels.^[16] Low productivity and competitiveness on the European and world markets alike due to inadequate R&D funding and a lack of a clearly defined development policy remain a significant obstacle for foreign investment and economic growth.^[17]

History[link]

The economy declined dramatically during the 1990s with the collapse of the Council for Mutual Economic Assistance (COMECON) system and the loss of the Soviet market, to which the country had been closely tied. The standard of living fell by about 40%, and only regained pre-1989 levels by June 2004. In addition, UN sanctions against Serbia (1992–95) and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew 1.4% in 1994 for the first time since 1988, and 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to an unstable and decentralised banking system, a wave of hyperinflation throughout several countries of Eastern Europe, and slow reforms, which led to an inflation rate of 311% and the collapse of the lev. When pro-reform forces came into power in the spring 1997, an ambitious^{[clarification needed]} economic reform package, including introduction of a currency board regime, was agreed to with the International Monetary Fund and the World Bank, and the economy began to stabilise. The 2000s (decade) saw a steady pace of growth and budget surpluses, but shaky inflation.

Successful foreign direct investment and successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning have contributed greatly to the Bulgarian economy, with a historical growth rate average of 6% a year.

Corruption in the public administration and a weak judiciary have continued to be long-term problems, and the presence of organized crime remains very high.^{[citation needed]}

A period of large trade deficits and improper real estate investment hit Bulgaria hard during the late-2000s recession, resulting in a 12% GDP decline in that period, a rise in unemployment, and spending at least five quarters in its worst recession since the early 1980s. However, this was not as severe compared to much of Europe. Future prospects are tied to the country's increasingly important integration with the European Union member states. However, the country came out of a recession in 2010, and stagnated for a short period of time. It has been recently predicted^{[by whom?]} that the economy would grow modestly by 2011. The country is expected to join the Eurozone in 2013.

From the end of World War II until the widespread change of regime in Eastern Europe in November 1989, the Bulgarian Communist Party (BCP) exerted complete economic, social and political control in Bulgaria. The party's ascent to power in 1944 had marked the beginning of economic change towards planned economy in Bulgaria. After World War II, Bulgaria followed the Soviet model of economic development more closely than any other East Bloc country with becoming one of the first members of Comecon; the new regime shifted the economy from mainly agrarian type towards industrial economy and much of the labour force from the countryside to the city, providing workers for new large-scale industrial complexes. At the same time, the focus of Bulgarian international trade shifted from Central Europe to Eastern Europe and USSR.^[18][19]

These new policies resulted in impressive initial rates. Bulgarian economy closely resembled that of the Soviet Union. Soviet-style centralised planning in five-year blocks had more immediate benefits there than in the other European states where it was first applied in the early 1950s.^[20] Throughout the postwar period, economic progress also was assisted substantially by a level of internal and external political stability unseen in other East European countries during the same period, that was also a change in Bulgarian political scene was a lot of turbulence preceded the ascent to power of the BCP.^[18]

Nonetheless, beginning in the early 1960s low capital and labour productivity and expensive material inputs plagued the Bulgarian economy. With disappointing rates of growth came a high degree of economic experimentation. This experimentation took place within the socialist economic framework, however, and it never approached a market-based economy.^[18]

In the late 1980s, continuing poor economic performance brought new economic hardship. By that time, the misdirection and irrationality of BCP economic policies had become quite clear. Bulgaria's economy contracted dramatically after 1987 with the dissolution of the Comecon, with which the Bulgarian economy had integrated closely. Finally, on 10 November 1989, at the November plenum of BCP Todor Zhivkov was dismissed as a long-time party leader and head of state and the communist regime gave way to democratic elections and government. Unlike the communist parties in most other East European states, the BCP (changing its name to Bulgarian Socialist Party) retained majority power after the transition in Bulgaria by winning the first free national elections in June 1990. That was made possible by changes in party leadership, programme, reduction of its power base and other which permitted economic reorientation toward a market system. This difficult transition combined with political vagueness, unpreparedness of people for the social and economic changes led to seriously worsen economic conditions during early 1990s.^[18] The standard of living fell with nearly 40% and more and regain levels in the beginning of 2000's.

1990-2000[link]

The economy declined dramatically during the 1990s with the collapse of the Comecon system and the loss of the Soviet market, to which the country had been closely tied. The standard of living fell by about 40%, and only regained pre-1989 levels by June 2004. In addition, UN sanctions against Serbia (1992–95) and Iraq took a heavy toll on the Bulgarian economy. The first signs of recovery emerged when GDP grew 1.4% in 1994 for the first time since 1988, and 2.5% in 1995. Inflation, which surged in 1994 to 122%, fell to 32.9% in 1995. During 1996, however, the economy collapsed due to the Bulgarian Socialist Party's slow and mismanaged economic reforms and an unstable and decentralised banking system, which led to an inflation rate of 311% and the collapse of the lev. When pro-reform forces came into power in the spring 1997, an ambitious economic reform package, including introduction of a currency board regime, was agreed to with the International Monetary Fund and the World Bank, and the economy began to stabilise. The 2000s (decade) saw a steady pace of growth and budget surpluses, but shaky inflation.

Reforms of the 1990s and early 2000s (decade)[link]

Members of the government promised to move forward on cash and mass privatization upon taking office in January 1995 but were slow to act. United Nations sanctions against Yugoslavia and Iraq (1990–2003), two of the country's most significant trading partners, took a heavy toll on the Bulgarian economy. The first signs of recovery emerged in 1994 when the GDP grew and inflation fell. The first round of mass privatisation finally began in January 1996, and auctions began toward the end of that year. The second and third rounds were conducted in Spring 1997 under a new government. In July 1998, the UDF-led government and the IMF reached agreement on a 3-year loan worth about $800 million, which replaced the 14-month stand-by agreement that expired in June 1998. The loan was used to develop financial markets, improve social safety net programmes, strengthen the tax system, reform agricultural and energy sectors, and further liberalise trade. The European Commission, in its 2002 country report, recognised Bulgaria as a functioning market economy, acknowledging the progress made by Prime Minister Ivan Kostov's government toward market-oriented reforms.

Rebound from the February 1997 crisis[link]

In April 1997, the Union of Democratic Forces (UDF) government won pre-term parliamentary elections and introduced an IMF currency board system which succeeded in stabilizing the economy. The triple digit inflation of 1996 and 1997 has given way to an official economic growth, but forecasters are predicting accelerated growth over the next several years. The government's structural reform program includes:

1. privatization and, where appropriate, liquidation of state-owned enterprises (SOEs);
2. liberalization of agricultural policies, including creating conditions for the development of a land market;
3. reform of the country's social insurance programs; and
4. reforms to strengthen contract enforcement and fight crime and corruption.

Despite reforms, weak control over privatization led many successful state enterprises to bankruptcy. The UDF government also failed to stop the growing negative account balance, which has since then continued to increase, reaching a negative of $ 12.65 billion in 2008. The government elected in 2001 pledged to maintain the fundamental economic policy objectives adopted by its predecessor in 1997, specifically: retaining the Currency Board, implementing sound financial policies, accelerating privatisation, and pursuing structural reforms. Both governments failed to implement sound social policies.

The economy really took off between 2003 and 2008 and growth figures quickly shot up, fluctuating between figures as high as 6.6% (2004) and 5.0% (2003). Even in the last pre-crisis year, 2008, the Bulgarian economy was growing rapidly at 6.0%, despite significantly slowing down in the last quarter.

^[21]

Part of the European Union[link]

On 1 January 2007 Bulgaria entered the European Union. This led to some immediate international trade liberalization, but there was no shock to the economy. The government is running annual surpluses of above 3%. This fact, together with annual GDP growth of above 5%, has brought the government indebtedness to 22.8% of GDP in 2006 from 67.3% five years earlier.^[22] This is to be contrasted with enormous current account deficits. Low interest rates guaranteed availability of funds for investment and consumption. For example, a boom in the real estate market started around 2003. At the same time annual inflation in the economy was variable and during the last five years (2003–2007) has seen a low of 2.3% and high of 7.3%.^[23] Most importantly, this poses a threat to the country's accession to the Eurozone. The Bulgarian government plans to adopt the Euro no sooner than 2015. From a political point of view, there is a trade-off between Bulgaria's economic growth and the stability required for early accession to the monetary union. Bulgaria's per-capita PPP GDP is still only about a half of the EU27 average, while the country's nominal GDP per capita is about 20% of the EU27 average. However, Bulgaria ranks 51st in the Ease of Doing Business rank list, higher than most other Eastern European states,^[24] and 28th in the Economic Freedom of the World index, outperforming the Netherlands and South Korea. Bulgaria also has the lowest personal and corporate income tax rates in the EU,^[25][26][27] as well as the second lowest public debt of all European Union member states at 16.2% of GDP in 2010.^[28]

Economic downturn following the international financial crisis[link]

The country suffered a difficult start to 2009, after gas supplies were cut in the Russia-Ukraine gas dispute. Industrial output suffered, as well as public services, exposing Bulgaria being overdependent on Russia for raw materials. The global financial crisis started to apply downward pressure on growth and employment in the last quarter of 2008. The real estate market, although not plummeting, ground to a halt and growth is expected to be significantly lower in the short-to-medium run.

During the course of 2009, the grim forecasts for the effects of the global crisis on the Bulgarian economy largely materialized. Although suffering less than the worst-hit countries, Bulgaria recorded its worst economic results since the 1997 meltdown. GDP shrank by around 5% and unemployment jumped. Consumer spending and foreign investment dropped dramatically and depressed growth in 2010 to 0.3%. Unemployment remains stubbornly high around 10%.

New government and fiscal discipline[link]

The government of Boiko Borisov elected in 2009 undertook steps to restore economic growth, while attempting to maintain a strict financial policy.^[29] The fiscal discipline set by Finance Minister Djankov proved successful and together with reduced budget spending it placed Bulgarian economy on the stage of steadily though slowly growing in the mids of world crisis. On December 1, 2009, Standard and Poors upgraded Bulgaria's investment outlook from "negative" to "stable," which made Bulgaria the only country in the European Union to receive positive upgrade that year.^[30] In January 2010 Moody's followed with an upgrade of its rating perspective from "stable" to "positive."

Bulgaria was expected to join the Eurozone in 2013 but after the rise of some instability in the zone Bulgaria is withholding its positions towards the Euro, combining together positive and realistic attitudes.^[31][32] Since Bulgarian lev is anyway bounded to Euro Bulgaria is looking for more positive outcomes of the becoming a member of the Eurozone rather than risks.

Economic statistics[link]

It has been suggested that Statistic about the economy of Bulgaria be merged into this article or section. (Discuss) Proposed since November 2010.

• Economic statistics

Sectors[link]

Industry and construction[link]

Much of Bulgaria’s communist-era industry was heavy industry, although biochemicals and computers were significant products beginning in the 1980s. Because Bulgarian industry was configured to Soviet markets, the end of the Soviet Union and the Warsaw Pact caused a severe crisis in the 1990s. After showing its first growth since the communist era in 2000, Bulgaria’s industrial sector has grown slowly but steadily in the early 2000s (decade). The performance of individual manufacturing industries has been uneven, however. Food processing and tobacco processing suffered from the loss of Soviet markets and have not maintained standards high enough to compete in Western Europe. Textile processing generally has declined since the mid-1990s, although clothing exports have grown steadily since 2000.^[33]

Oil refining survived the shocks of the 1990s because of a continuing export market and the purchase of the Burgas refinery by the Russian oil giant LUKoil. The chemical industry has remained in good overall condition but is subject to fluctuating natural gas prices. Growth in ferrous metallurgy, which is dominated by the Kremikovtsi Metals Combine, has been delayed by a complex privatization process and by obsolete capital equipment. Non-ferrous metallurgy has prospered because the Pirdop copper smelting plant was bought by Union Minière of Belgium and because export markets have been favourable.^[33]

The end of the Warsaw Pact alliance and the loss of Third World markets were grave blows to the defence industry. In the early 2000s (decade), the industry’s plan for survival has included upgrading products to satisfy Western markets and doing cooperative manufacturing with Russian companies. The electronics industry, which also was configured in the 1980s to serve Soviet markets, has not been able to compete with Western computer manufacturers. The industry now relies on contract agreements with European firms and attracting foreign investment. The automotive industry has ceased the manufacture of cars, trucks, and buses. Manufacture of forklifts, a speciality in the communist era, also has stopped. In the early 2000s (decade), shipbuilding has prospered at the major Varna and Ruse yards because of foreign ownership (Ruse) and privatization (Varna).^[34]

Only in recent years electronics and electric equipment production has regained higher levels. The largest centres include Sofia, Plovdiv and the surrounding area, Botevgrad, Stara Zagora, Varna, Pravets and many other cities. Household appliances, computers, CDs, telephones, medical and scientific equipment are being produced. In 2008 the electronics industry shipped more than $260 million in exports, primarily of components, computers and consumer electronics.^[35]

Many factories producing transportation equipment currently^[update] still do not operate at full capacity. Plants produce trains (Burgas, Dryanovo), trams (Sofia), trolleys (Dupnitsa), buses (Botevgrad), trucks (Shumen), motor truck]s (Plovdiv, Lom, Sofia, Lovech). Lovech has an automotive assembly plant. Rousse serves as the main centre for agricultural machinery. Bulgarian arms production mainly operates in central Bulgaria (Kazanlak, Sopot, Karlovo).

Construction output fell dramatically in the 1990s as industrial and housing construction declined, but a recovery began in the early 2000s (decade). The sector, now dominated by private firms, has resumed the foreign building programs that led to prosperity in the communist era. The Glavbolgostroy firm has major building projects in Kazakhstan, Russia, and Ukraine as well as domestic contracts.^[36]

Energy[link]

Chaira hydro power storage electric plant reservoir.

Bulgaria relies on imported oil and natural gas (most of which comes from Russia), together with domestic generation of electricity from coal-powered and hydro plants, and the Kozloduy nuclear plant. The economy remains energy-intensive because conservation practices have developed slowly. The country is a major regional electricity producer. Bulgaria produced 38.07 billion kWh of electricity in 2006^[37] (in comparison, Romania, which has a population nearly three times larger than Bulgaria, produced 51.7 billion kW·h^[37] in the same year). The domestic power-generating industry, which was privatized in 2004 by sales to interests from Europe, Japan, Russia, and the United States, suffers from obsolete equipment and a weak oversight agency. To solve the latter problem, in 2008 the government set up a state-owned energy holding-company (Bulgarian Energy Holding EAD), composed of gas company Bulgargaz, Bulgartransgaz, power company NEK EAD, Electricity System Operator EAD, Kozloduy nuclear power station, Maritza-Iztok II thermal power station, the Mini Maritza Iztok (Maritza Iztok mines), and Bulgartel EAD. The state holds a 100% stake in the holding company.^[38][39] Most of Bulgaria’s conventional power stations will require large-scale modernization in the near future. Bulgaria has some 64 small hydroelectric plants, which together produce 19 percent of the country’s power output.^[36]

The Kozloduy nuclear plant, which in 2005 supplied more than 40 percent of Bulgaria’s electric power, will play a diminishing role because two of its remaining four reactors (two were closed in 2002) must be closed by 2007 to comply with European Union (EU) standards. Kozloduy, which exported 14 percent of its output in 2006, was expected to cease all exportation in 2007. Construction of the long-delayed Belene nuclear plant resumed in 2006 but will not be complete until at least 2011. Belene, planned in the 1980s but then rejected, was revived by the safety controversy at Kozloduy.^[36]

Oil exploration is ongoing offshore in the Black Sea (the Shabla block) and on the Romanian border, but Bulgaria’s chief oil income is likely to come as a transfer point on east-west and north-south transit lines. Burgas is Bulgaria’s main oil port on the Black Sea. Bulgaria’s largest oil refinery, Neftochim, was purchased by Russian oil giant LUKoil in 1999 and underwent modernization in 2005. Bulgaria’s only significant coal resource is low-quality lignite, mainly from the state-owned Maritsa-Iztok and Bobov Dol complexes and used in local thermoelectric power stations.^[36]

Thermal power stations (TPPs) provide a significant amount of energy, with most of the capacity concentrated in the Maritsa Iztok Complex. The largest TPPs include:

• "Maritsa Iztok 2" - 1,450 MW
• "Varna" - 1,260 MW
• "Maritsa Iztok 3" - 870 MW
• "Bobov Dol" - 630 MW
• "Ruse Iztok" - 600 MW
• "Maritsa Iztok 1" - 500 MW

A $1.4 bln. project for the construction of an additional 670 MW block for the 500 MW Maritza Iztok 1 Thermal Power Station^[40] is expected to be completed by the middle of 2010.

Bulgaria ranks as a minor oil producer (97th in the world) with a total production of 3,520 bbl/day.^[41] Prospectors discovered Bulgaria's first oil field near Tyulenovo in 1951. Proved reserves amount to 15,000,000 bbl (2,400,000 m³). Natural gas production halted in the late 1990s. Proved reserves of natural gas amount to 5.663 bln. cu m.^[42] The LUKOIL Neftochim oil refinery is Bulgaria's largest refining facility with annual revenues amounting to more than 4 billion leva (2 billion euro).^[43]

Recent years^[update] have seen a steady increase in electricity production from renewable energy sources such as wind and solar power.^[44] Wind energy has large-scale prospects, with up to 3,400 MW of installed capacity potential.^[45] As of 2009^[update] Bulgaria operates more than 70 wind turbines with a total capacity of 112.6 MW, and plans to increase their number nearly threefold to reach a total capacity of 300 MW in 2010.^[46]

Services and tourism[link]

Bulgarian summer and winter resorts are increasingly attracting tourists

Although the contribution of services to gross domestic product (GDP) has more than doubled in the post-communist era, a substantial share of that growth has been in government services, and the qualitative level of services varies greatly. The Bulgarian banking system, which was weak in the first post-communist years, was fully reformed in the late 1990s, including stronger oversight from the National Bank of Bulgaria and gradual privatisation. In 2003 the banking system was fully privatised, and substantial consolidation began making the system more efficient in 2004. Several smaller banks grew substantially between 2004 and 2006. These processes increased public confidence in the banks. Although the system still requires consolidation, loan activity to individuals and businesses increased in the early 2000s (decade). The insurance industry has grown rapidly since a market reform in 1997, with the help of foreign firms. An example is the Bulgarian Insurance Group (BIG), a pension-fund and insurance management company owned by the Dutch-Israeli TBI Holding Company and the European Bank for Reconstruction and Development (EBRD). The introduction of health and pension insurance plans has expanded the private insurance industry. A series of reform laws in the early 2000s (decade) enabled the Bulgarian Stock Exchange to begin regular operation. As of 2005, stock market activity was limited by lack of transparency, although the growth rate increased beginning in 2004.^[47]

After a decline in the 1990s, in the early 2000s (decade) the tourism industry has grown rapidly. In 2004 some 4 million foreigners visited Bulgaria, compared with 2.3 million in 2000. This trend is based on a number of attractive destinations, low costs, and restoration of facilities. Most of the industry had been privatised by 2004. Infrastructure items such as recreation facilities and booking services require improvement. Development of Bulgaria’s retail sales sector was slow until the early 2000s (decade), when a large number of Western-style outlets began to appear, and Sofia developed as a retail center. By 2006 several major European retail chains had opened stores, and others planned to enter the Bulgarian market.^[48]

Bulgaria has attracted considerable investment from foreigners buying property either for their own use or for investment. In 2006, more than 29% of property deals were signed by foreigners, more than half of whom were UK citizens.^[49] Various companies, such as Bulgarian Dreams, actively marketed Bulgarian properties to buyers overseas.

In 2007 Bulgaria was visited by 5,200,000 tourists, ranking 39th in the world.^[50] Tourists from Greece, Romania and Germany account for 40% of visitors.^[51] Significant numbers of British (+300,000), Russian (+200,000), Serbian (+150,000), Polish (+130,000) and Danish (+100,000) tourists also visit Bulgaria. Most of them are attracted by the varying and beautiful landscapes, well-preserved historical and cultural heritage, and the tranquility of rural and mountain areas.

Main destinations include the capital Sofia, coastal resorts Albena, Sozopol, Sveti Vlas; winter resorts Pamporovo, Chepelare and Borovetz. Arbanasi and Bozhentsi are rural tourist destinations with well-preserved ethnographic traditions. Other popular attractions are the 10th century Rila Monastery and the 19th century Euxinograd château.

Agriculture, forestry, and fishing[link]

Bulgaria is the largest world producer of rose and lavender oil,
the most widely used essential oils in perfumery.^[52][53]

In the communist era, Bulgaria’s agriculture was heavily centralized, integrated with agriculture-related industries, and state-run. In the postcommunist era, the process of restoring agricultural land to private owners in a form that ensures productivity has been slow. Bank investment and insecurity in the land market contributed to slow development in the 1990s. By 2004 some 98 percent of the workforce and output of Bulgaria’s agricultural sector was private, including a number of large private cooperative enterprises. A significant amount of food also is produced for direct consumption by non-farmers on small plots, which are an important support for parts of the population. In 2000 and 2003, droughts limited agricultural production, and floods had the same effect in 2005. Bulgaria’s main field crops are wheat, corn, and barley. The main industrial crops are sugar beets, sunflowers, and tobacco. Tomatoes, cucumbers, and peppers are the most important vegetable exports. Production of apples and grapes, Bulgaria’s largest fruit products, has decreased since the communist era, but the export of wine has increased significantly. The most important types of livestock are cattle, sheep, poultry, pigs, and buffaloes, and the main dairy products are yogurt, cow and sheep cheese.^[54] Bulgaria is the world's 13th largest sheep milk producer^[55] and is the 15th largest producer of tobacco^[56] and 13th largest producer of raspberries^[57] in Europe. Specialized equipment amounts to some 25,000 tractors and 5,500 combine harvesters, with a fleet of light aircraft.^[58]

Combine harvester near Slivnitsa. About 43% of Bulgaria's land is arable.

In 2004 an estimated one-third of Bulgaria’s land mass was covered by forests, of which about 40 percent was conifers. Between 1980 and 2000, the forested area increased by 4.6 percent. In 2002 a total of 4,800 tons of timber was harvested, 44 percent of which was fuel wood and 20 percent, pulpwood. Although nominal state timber standards are very strict, in 2004 an estimated 45 percent of Bulgaria’s timber harvest was logged illegally because of corruption in the forest service. Some 7.5 percent of forests are protected from all uses, and 65 percent are designated for ecological and commercial use. In 2005 about 70 percent of the total forest resource was rated economically viable.^[54]

Since Bulgaria stopped high-seas fishing in 1995, the country has imported increasing amounts of fish. The fish farming industry (particularly sturgeon) has expanded in the early 2000s (decade), and some environmental improvements in the Black Sea and the Danube River, the principal sources of fish, may increase the take in future years. However, the catch from those sources has decreased sharply in recent decades, yielding only a few species of fish for domestic markets in 2004. Between 1999 and 2001, Bulgaria’s total fish harvest, wild and cultivated, dropped from 18,600 tons to 8,100 tons, but in 2003 the harvest had recovered to 16,500 tons.^[33]

Production of the most important crops (according to the Food and Agriculture Organization) in 2006 (in '000 tons) amounted to: wheat 3301.9; sunflower 1196.6; maize 1587.8; grapes 266.2; tobacco 42.0; tomatoes 213.0; barley 546.3; potatoes 386.1; peppers 156.7; cucumbers 61.5; cherries 18.2; watermelons 136.0; cabbage 72.7; apples 26.1; plums 18.0; strawberries 8.8.

Mining and minerals[link]

Bulgaria’s mining industry has declined in the post-communist era. Many deposits have remained underdeveloped because of a lack of modern equipment and low funding. Mining has contributed less than 2 percent of GDP and engaged less than 3 percent of the workforce in the early 2000s (decade). Bulgaria has the following estimated deposits of metallic minerals: 207 million tons of iron ore, 127 million tons of manganese ore, 936 million tons of copper ore, 238 million tons of chromium ore, and 150 million tons of gold ore. Several of Bulgaria’s minerals are extracted commercially; 80 percent of mining is done by open-pit excavation. Iron extraction at Kremikovtsi and elsewhere is not sufficient to support the domestic steel industry, but copper, lead, and zinc deposits fully supply the nonferrous metallurgy industries. A British firm has exploratory gold mines at Dikanyite and Gornoseltsi, and a domestic copper and gold mine operates at Chelopech. About 50 nonmetallic minerals are present in significant amounts. Substantial amounts of uranium are present in the Rhodope Mountains, but no extraction has occurred in the last 10 years.^[33]

Despite the poor performance of the mining sector, productivity has increased in recent years. Mining remains one of the most important sources of export earnings and is still a significant contributor to economic growth. The mining industry is worth $760 mln,^[59] and, along with related industries, employs 120,000 people.^[60] The rising global prices of gold, lead and copper in 2010, as well as investments in zinc and coal production, have boosted economic growth in the mining sector after the late-2000s financial crisis.^[61] As of 2010 Bulgaria ranks as the 19th largest coal producer in the world,^[62] 9th largest bismuth producer,^[63] 19th largest copper producer,^[64] and the 26th largest zinc producer.^[65]

The "Elatsite" copper mine and reprocessing facility, built during Vulko Chervenkov's rule, takes its place as one of the largest in South-Eastern Europe. It extracts 13 million tonnes of ore annually, producing about 42,000 tonnes of copper, 1.6 tonnes of gold and 5.5 tonnes of silver.^[66]

Ferrous metallurgy has major importance. Much of the production of steel and pig iron takes place in Kremikovtsi and Pernik, with a third metallurgical base in Debelt. In production of steel and steel products per capita the country heads the Balkans. As of 2009^[update] the fate of Kremikovtsi steel factories has come under debate because of serious pollution in the capital, Sofia.

The largest refineries for lead and zinc operate in Plovdiv (the biggest refinery between Italy and the Ural mountains), Kardzhali and Novi Iskar; for copper in Pirdop and Eliseina (now defunct); for aluminium in Shumen. In production of many metals per capita, such as zinc and iron, Bulgaria ranks first in Eastern Europe.

Infrastructure[link]

A Siemens railcar of the Bulgarian State Railways. Bulgaria's largely antiquated rail transport system is gradually being modernized.^[67][68]

Although it has relatively few reserves of fossil fuels, Bulgaria's well-developed energy sector and strategic geographical location make it a key European energy hub.^[69] Nearly 34% of the electricity is produced by nuclear energy from the nuclear power station at Kozloduy^[70] and public opinion is strongly in support of nuclear energy development.^[71] Recent years^[update] have seen a rapid increase in electricity production from renewable energy sources such as wind and solar power,^[72] making Bulgaria one of the fastest-growing wind energy producers in the world.^[73] The country aims at producing 16 % of its electricity from renewable energy sources by 2020.^[74]

Bulgaria's national road network has a total length of 40,231 kilometers (24,998 mi),^[75] of which 39,587 kilometers (24,598 mi) are paved, but nearly half of them fall into the lowest international rating for paved roads.^[76] Motorways, such as Trakiya, Hemus and Struma, have a total length of 441 km (274 mi). Railroads are a major mode of freight transportation, although highways carry a progressively larger share of freight.^[76] Bulgaria also has 6,238 kilometers (3,876 mi) of railway track^[76] and plans to construct a high-speed railway by 2017, at a cost of €3 bln.^[77][78] Sofia and Plovdiv are major air travel hubs, while Varna and Burgas are the principal maritime trade ports.^[76]

Bulgaria has an extensive, but antiquated telecommunications network which requires substantial modernization.^[76] Telephone service is available in most villages, and a central digital trunk line connects most regions.^[76] Currently there are three actitve mobile phone operators - Mtel, GLOBUL and Vivacom.^[79] Since 2000, a rapid increase in the number of Internet users has occurred – from 430,000 they grew to 1,545,100 in 2004, and 3.4 million (48% penetration rate) in 2010.^[80] Bulgaria has the fastest average Broadband Internet speed in the world after Romania and South Korea.^[81]

Science and technology[link]

Tower of the 200 cm (79 in) telescope at the Rozhen Observatory.

In 2010 Bulgaria spent 0.25% of its GDP on scientific research,^[82] which represents one of the lowest scientific budgets in Europe.^[83] Chronic underinvestment in the sector since 1990 forced many scientific professionals to leave the country.^[84] As a result, Bulgaria's economy scores low in terms of innovation, competitiveness and high added value exports.^[85][86]

The Bulgarian Academy of Sciences (BAS) is the leading scientific institution in the country and employs most of Bulgaria's researchers in its numerous branches. The principal areas of research and development are energy, nanotechnology, archaeology and medicine.^[82] With major-general Georgi Ivanov flying on Soyuz 33 in 1979, Bulgaria became the 6th country in the world to have an astronaut in space.^[87] Bulgaria has deployed its own experiments on various missions, such as the RADOM-7^[88] dosimeters on the International Space Station and Chandrayaan-1 and the space greenhouse (a Bulgarian invention) on the Mir space station.^[89] In 2011 the government announced plans to reboot the space program by producing a new microsatellite and joining the European Space Agency.^[90]

Due to its large-scale computing technology exports to COMECON states, in the 1980s Bulgaria became known as the Silicon Valley of the Eastern Bloc.^[91] The country ranked 8th in the world in 2002 by total number of ICT specialists, outperforming countries with far larger populations,^[92] and it operates the only supercomputer in the Balkan region,^[93] an IBM Blue Gene/P, which entered service in September 2008.^[94]

Labour[link]

In 2005 the labour force was estimated at 3.3 million; in 2004, 11 percent worked in agriculture, 33 percent in industry, and 56 percent in services. The unemployment rate has been in double digits throughout the post-communist era, reaching a high point of 19 percent in 2000. Since then, the rate has decreased substantially with the creation of new jobs in private and state enterprises. In 2005 the official figure was 11.5 percent, compared with 16.9 percent at the end of 2002. However, in 2003 an estimated 500,000 Bulgarians were unemployed but not officially counted because they were not seeking work. In January 2005, the government raised the minimum wage by 25 percent, to US$90 per month. The largest labour unions are Podkrepa (Support) and the Confederation of Independent Trade Unions in Bulgaria. They represent labour in the National Council for Tripartite Partnership, in which they join government and business representatives to discuss issues of labour, social security, and living standards. The unions were an important political force in the fall of the Zhivkov regime.^[48]

Currency and inflation[link]

Bulgaria’s unit of currency is the lev (pl., leva). In October 2006, the U.S. dollar was worth 1.57 leva. In 1999 the value of the lev was pegged to that of the German deutsch-mark, which was replaced by the euro in 2001. Following Bulgaria’s admission to the European Union, the lev is scheduled to be replaced by the euro.^[95]

In 2003 Bulgaria’s inflation rate was estimated at between 2.3 and 3 percent. The rate was 6 percent in 2004 and 5 percent in 2005.^[54]

Taxation and government budget[link]

As of 1 January 2008 the income tax for all citizens is set to a flat rate of 10%. This flat tax is one of the lowest income rates in the world and the lowest income rate in the European Union.^[96] The reform was done in pursue for higher GDP growth and greater tax collection rates. Some called it a "revolution" in taxation, but the changes were met with mild discussions and some protests by affected working classes. The proposal was modified to allow for compensating the perceived losers from the changes in the tax formula. The corporate income tax is also 10% as of 1 January 2007 which is also among the lowest in Europe.^[97] Currently this taxation is kept while other countries highered their taxes during the crisis.

For 2005 Bulgaria’s estimated state revenues totaled US$11.2 billion, and its estimated state expenditures, including capital expenditures, were US$10.9 billion, yielding a surplus of US$300 million. In 2004 revenues totaled US$10.1 billion and expenditures US$9.7 billion, for a surplus of US$400 million.^[54]

Foreign economic relations[link]

In the 1990s, Bulgaria moved gradually away from dependence on markets in the former Soviet sphere, increasing its exports to the European Union (EU). In 1999 Bulgaria joined the Central European Free-Trade Agreement (CEFTA), with whose members (Croatia, the Czech Republic, Hungary, Poland, Romania, Slovakia, and Slovenia; Macedonia was added in 2006) it has established important trade relations. The admission of all but Croatia and Romania to the EU in 2004 reduced the significance of CEFTA trade, however. In 2004 some 54 percent of Bulgaria’s import trade and 58 percent of its export trade was with EU member countries. Bulgaria has bilateral free-trade agreements with Albania, Croatia, Estonia, Israel, Latvia, Lithuania, Macedonia, Moldova, and Turkey.^[48]

In the early 2000s (decade), hydrocarbon fuels remained an important import, although beginning in the late 1990s those commodities’ share of total imports decreased significantly, from 29 percent in 1996 to 13 percent in 2004. During that period, the diversification of imported products improved as the volume of machinery and equipment, consumer products, and automobiles increased. A large percentage of imports is accounted for by raw materials such as cloth, metal ore, and petroleum, which are processed and re-exported. The most important imports in 2005 were machinery and equipment, metals and ores, chemicals and plastics, fuels, and minerals. The major sources of imports, in order of volume, were Germany, Russia, Italy, Turkey, and Greece. In 2005 Bulgaria’s largest export markets, in order of volume, were Italy, Germany, Turkey, Greece, and Belgium. The most important export commodities were clothing, footwear, iron and steel, machinery and equipment, and fuels. In 2005 Bulgaria’s exports totaled US$11.7 billion and its imports totaled US$15.9 billion, incurring a trade deficit of US$4.2 billion. The trade deficit is especially severe with Russia, where markets for Bulgarian goods have shrunk drastically in the early 2000s (decade).^[98]

In the first half of 2006, Bulgaria had a current account deficit of US$2.3 billion, a substantial increase over the deficit for the same period of 2005, which was some US$1.4 billion. Its trade deficit was US$2.78 billion, foreign direct investment totaled US$1.8 billion, and the financial account balance was US$2.29 billion. In mid-2006 the overall balance of payments was US$883 million, compared with US$755 million for the same period of 2005.^[99]

Bulgaria’s large foreign debt has been an economic burden throughout the postcommunist era. At the end of 2005, Bulgaria reported an external debt of US$15.2 billion, an increase in value but a decrease as a percentage of gross domestic product (GDP) compared with 2002 and previous years. As a percentage of GDP, the external debt remained constant between 2004 and 2005.^[99]

Beginning in the late 1990s, investment from the West and from Russia has contributed significantly to recovery from the economic crisis of 1996–97, but the rate of investment has remained lower than that in other countries of Eastern Europe. In 2003 the largest national sources of foreign direct investment, in order of volume, were Austria, Greece, Germany, Italy, and the Netherlands. In 1997 the Belgian Solve company bought the Deny Soda Combine, and in 1999 LUKoil of Russia bought the Neftochim Oil Refinery at Burgas. Union Minière, a Belgian mining company, bought the large Pirdop copper-smelting plant, giving an important boost to Bulgarian nonferrous metallurgy. A number of foreign companies have invested in the chemical fertilizer and food-processing industries In the early 2000s (decade), China invested in the Bulgarian electronics industry. Some cooperative agreements have been made for manufacture of vehicle components. Daimler-Chrysler of Germany has a contract to update Bulgaria’s military transport vehicles between 2003 and 2015. The French Eurocopter company has a bilateral protocol involving a variety of machinery, computer software, and other industrial products. In 2004 Bulgarian oil reserves attracted interest from Melrose Resources of Edinburgh. Russia’s natural gas giant, Gazprom, has pledged investment in Bulgaria’s natural gas infrastructure in exchange for increased purchase of its product. A three-company Israeli consortium agreed in 2004 to work with the domestic Overgas company (which is half-owned by Gazprom) on a major natural-gas distribution network in Bulgaria. In 2005 three European consortia submitted bids for construction of the Belene nuclear power plant. One such investor is the Italian ENEL energy consortium, which also owns the Maritsa–Iztok–3 thermal power plant. In 2006 Russia’s Gazprom company bid against several European energy companies for ownership of newly privatized regional heating utilities, and the Austrian Petromaxx Energy Group invested US$120 million in a new oil refinery at Silistra.^[99]

In December 1996, Bulgaria joined the World Trade Organization. In the early 1990s Bulgaria's slow pace of privatization, contradictory government tax and investment policies, and bureaucratic red tape kept foreign investment among the lowest in the region. Total direct foreign investment from 1991 through 1996 was $831 million. In the years since 1997, however, Bulgaria has begun to attract substantial foreign investment. In 2004 alone over 2.72 billion Euro (3.47 billion US dollars) were invested by foreign companies. In 2005 economists observed a slowdown to about 1.8 billion euros (2.3 billion US dollars) in FDI which is attributed mainly to the end of the privatization of the major state owned companies. After joining the EU in 2007 Bulgaria registered a peak in foreign investment of about 6 billion euros.

Miscellaneous data[link]

Households with access to fixed and mobile telephone access^[100]

• landline telephone - 62% (2009)
• mobile telephone - 78% (2009)

Broadband penetration rate^[100]

• fixed broadband- 13.0% (2010)
• mobile broadband- 1.3% (2010)

Individuals using computer and internet^[100]

• computer - 47% (2009)
• internet - 45% (2009)

See also[link]

Business and economics portal

• Bulgarian National Bank
• Bulgarian Stock Exchange

References[link]

 This article incorporates public domain material Bulgaria country profile (October 2006) from websites or documents of the Library of Congress Federal Research Division.

External links[link]

• CIA World Factbook
• Tax rates and tax revenue
• Discover better bulgarian market

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Coordinates: 42°45′N 25°30′E / 42.75°N 25.5°E / 42.75; 25.5

Republic of Bulgaria Република България Republika Balgariya
Flag Coat of arms
Motto: Съединението прави силата Unity makes strength
Anthem:  Mila Rodino "Dear Motherland"
Location of  Bulgaria  (red) – in Europe  (yellow & grey) – in the European Union  (yellow)  —  [Legend]
Capital (and largest city)		Sofia (София) 42°41′N 23°19′E / 42.683°N 23.317°E / 42.683; 23.317
Official language(s)		Bulgarian
Ethnic groups (2011)		84.8% Bulgarians 8.8% Turks 4.9% Roma 1.5% others
Demonym		Bulgarian
Government		Parliamentary democracy
-	President	Rosen Plevneliev
-	Prime Minister	Boyko Borisov
Legislature		National Assembly
Formation
-	First Bulgarian Empire	681
-	Principality of Bulgaria	3 March 1878
-	Kingdom of Bulgaria	22 September 1908
Area
-	Total	110,994 km2 (105th) 42,823 sq mi
-	Water (%)	0.3
Population
-	2011 census	7,364,570 [1] (98th)
-	Density	66.2/km2 (139th) 171/sq mi
GDP (PPP)		2011 estimate
-	Total	$101.036 billion[2] (66th)
-	Per capita	$13,597[2] (68th)
GDP (nominal)		2011 estimate
-	Total	$53.514 billion[2] (72th)
-	Per capita	$7,202[2] (74th)
Gini (2007)		28.2[3] (low)
HDI (2011)		0.771[4] (high) (55th)
Currency		Lev (BGN)
Time zone		EET (UTC+2)
-	Summer (DST)	EEST (UTC+3)
Drives on the		right
ISO 3166 code		BG
Internet TLD		.bg
Calling code		359

Bulgaria ⁱ/bʌlˈɡɛəriə/ (Bulgarian: България, IPA: [bɤ̞ɫˈɡarijɐ]), is a country located in Southeastern Europe. It is bordered by Romania to the north, Serbia and the Macedonia to the west, Greece and Turkey to the south and the Black Sea to the east. With a territory of 110,994 square kilometres (42,855 sq mi), Bulgaria is Europe's 14th-largest country. Its location has made it a historical crossroad for various civilisations and as such it is the home of some of the earliest metalworking, religious and other cultural artifacts in the world.

Prehistoric cultures began developing on Bulgarian lands during the Neolithic period. Its ancient history was marked by the presence of the Thracians, and later by the Greeks and Romans. The emergence of a unified Bulgarian ethnicity and state dates back to the First Bulgarian Empire, which dominated most of the Balkans and functioned as a cultural hub for Slavic peoples during the Middle Ages. With the downfall of the Second Bulgarian Empire in 1396, its territories came under Ottoman rule for nearly five hundred years. The Russo-Turkish War of 1877–1878 resulted in the Third Bulgarian State, recognised in 1908. The following years saw several conflicts with its neighbours, which prompted Bulgaria to align with Germany in both World Wars. In 1946 it became a Communist republic with a single-party system until 1989, when the Communist Party allowed multi-party elections. After 1990 Bulgaria transitioned to democracy and a market-based economy.

The population of 7.36 million people is predominantly urban and mainly concentrated in the administrative centres of its 28 provinces. Most commercial and cultural activities are concentrated in the capital Sofia. The strongest sectors of the economy are heavy industry, power engineering and agriculture, all relying on local natural resources. The massive industrial expansion during the postwar economic boom established Bulgaria as the leading electricity and raw material exporter in Southeast Europe through its energy and mining industries.

The current political structure dates to the adoption of a democratic constitution in 1991. A free country,^[5] Bulgaria is a unitary parliamentary republic with a high degree of political, administrative and economic centralisation. It is a member of the European Union, NATO and the Council of Europe, a founding state of the Organization for Security and Co-operation in Europe (OSCE), and has taken a seat at the UN Security Council three times.

History[link]

Prehistory and antiquity[link]

Prehistoric cultures in Bulgarian lands include the Neolithic Hamangia culture,^[6] Vinča culture^[7] and the eneolithic Varna culture (fifth millennium BC). The Varna Necropolis offers insights for understanding the social hierarchy of the earliest European societies.^[8]

The earliest and one of the three primary ancestral groups of modern Bulgarians^[9] were the Thracians, who populated various tribes until king Teres united most of them in the Odrysian kingdom around 500 BC.^[10][11] They were eventually subjugated by Alexander the Great in the 4th century and later by the Roman Empire in 46 AD. After the Fall of the Roman Empire, the easternmost South Slavs gradually settled on the territory of modern Bulgaria during the 6th century, assimilating the Hellenised or Romanised Thracians. Eventually the élite of the Central Asian Bulgars incorporated them into a new state which formed upon khan Asparukh's arrival in the Balkans.^[12]

First Bulgarian Empire[link]

Khan Krum feasts with his nobles after the battle of Pliska. His servant (far right) brings the wine-filled skull cup of Nicephorus I.

Asparukh, son of Old Great Bulgaria's khan Kubrat, migrated with several Bulgar tribes to the lower courses of the rivers Danube, Dniester and Dniepr. After 670, he expanded his kingdom into the Balkan Peninsula by leading a horde of 50,000 across the Danube^[13] and severed Moesia and Scythia Minor (Dobruja) from the Byzantine Empire.^[14] The local south Slavic language was gradually adopted by the advancing Bulgars, who preserved dominance over the Slavic majority. A peace treaty with Byzantium in 681 and the establishment of a permanent capital at Pliska south of the Danube marked the beginning of the First Bulgarian Empire.^[15]

Succeeding khans strengthened the Bulgarian state throughout the 8th and 9th centuries—Tervel established Bulgaria as a major military power by defeating a 26,000-strong Arab army during the Second Arab Siege of Constantinople.^[16] Krum doubled the country's territory, killed Byzantine emperor Nicephorus I in the Battle of Pliska,^[17] and introduced the first written code of law. Then in 864 Boris I abolished Tengriism in favour of Eastern Orthodox Christianity^[18] and introduced the Cyrillic alphabet. Simeon the Great's 34-year rule began in 893 and saw the largest territorial expansion of Bulgaria, along with a golden age of Bulgarian culture.^[19]

Wars with Croatians, Magyars, Pechenegs and Serbs and the spread of the Bogomil heresy weakened Bulgaria after Simeon's death.^[18][20] Two consecutive Rus' and Byzantine invasions resulted in the seizure of the capital Preslav by the Byzantine army in 971.^[21] Under Samuil, Bulgaria somewhat recovered from these attacks and managed to conquer Serbia and Albania,^[22] but this rise ended when Byzantine emperor Basil II defeated the Bulgarian army at Klyuch in 1014. Samuil died shortly after the battle,^[23] and by 1018 the Byzantines had ended the First Bulgarian Empire.^[24]

Second Bulgarian Empire[link]

The Second Bulgarian Empire under Tsar Ivan Asen II

After his conquest of Bulgaria, Basil II prevented revolts and discontent by retaining the rule of the local nobility and recognising the autocephaly of the Archbishopric of Ohrid.^[25] After his death Byzantine domestic policies changed and a series of unsuccessful rebellions broke out, the largest being led by Peter Delyan. In 1185 Asen dynasty nobles Ivan Asen I and Peter IV organised a major uprising which resulted in the re-establishment of the Bulgarian state. Ivan Asen and Peter laid the foundations of the Second Bulgarian Empire with Tarnovo as a capital.^[26]

Kaloyan, the third of the Asen monarchs, extended his dominion to Belgrade and Ohrid. He acknowledged the spiritual supremacy of the Pope and received a royal crown from a papal legate.^[12] The empire reached its zenith under Ivan Asen II (1218–1241), when commerce and culture flourished.^[12] The strong economic and religious influence of Tarnovo made it a "Third Rome", unlike the already declining Constantinople.^[27]

The country's military and economic might declined after the Asen dynasty ended in 1257, facing internal conflicts, constant Byzantine and Hungarian attacks and Mongol domination.^[12][28] By the end of the 14th century, factional divisions between the feudal landlords and the spread of Bogomilism had caused the Second Bulgarian Empire to split into three tsardoms—Vidin, Tarnovo and Karvuna—and several semi-independent principalities that fought each other, along with Byzantines, Hungarians, Serbs, Venetians and Genoese. By the late 14th century the Ottoman Turks had started their conquest of Bulgaria and had taken most towns and fortresses south of the Balkan mountains.^[12]

Ottoman rule[link]

Tarnovo was captured by the Ottomans after a three-month siege in 1393. After the Battle of Nicopolis and the fall of the Vidin Tsardom three years later, the Ottomans conquered all Bulgarian lands south of the Danube.^[29] Under the Ottoman system, Bulgarians were considered an inferior class of people and were subjected to heavy taxes; Bulgarian culture was suppressed and the educated clergy fled to other countries.^[30] The nobility was eliminated, the peasantry was enserfed to Ottoman masters,^[29] and the population lost its national consciousness.^[31]

The Defence of Shipka Pass was crucial for the liberation of Bulgaria. In the final stage of the battle the Bulgarian forces, having finished their ammunition, threw rocks and bodies of fallen comrades to repulse the Ottoman attacks.^[32]

Throughout the nearly five centuries of Ottoman rule, the Bulgarian people attempted to re-establish their state by organising several revolts, most notably the First (1598) and Second Tarnovo Uprisings (1686) and Karposh's Rebellion (1689).^[29] In the 18th century, the Enlightenment in Western Europe provided influence for the initiation of a movement known as the National awakening of Bulgaria.^[29] It restored national consciousness and became a key factor in the liberation struggle, resulting in the 1876 April Uprising. Up to 30,000 Bulgarians were killed as Ottoman authorities put down the rebellion. The massacres prompted the Great Powers to take action.^[33] They convened the Constantinople Conference in 1876, but their decisions were rejected by the Ottomans. This allowed the Russian Empire to seek a solution by force without risking military confrontation with other Great Powers, as had happened in the Crimean War.^[33] In 1877 Russia declared war on the Ottoman empire and defeated its forces with the help of Bulgarian volunteers. The Treaty of San Stefano was signed on 3 March 1878, setting up an autonomous Bulgarian principality on the territories of the Second Bulgarian Empire.^[34][35]

The other Great Powers immediately rejected the treaty out of fear that such a large country in the Balkans might threaten their interests. The subsequent Treaty of Berlin provided for a much smaller autonomous state comprising Moesia and the region of Sofia, leaving large populations of Bulgarians outside the new country.^[34][36] This played a significant role in forming Bulgaria's militaristic approach to foreign affairs during the first half of the 20th century.^[37] The Bulgarian principality won a war against Serbia and incorporated the semi-autonomous Ottoman territory of Eastern Rumelia in 1885, proclaiming itself an independent state on 22 September 1908.^[38]

Third Bulgarian State[link]

Bulgarian soldiers cutting Entente Powers barbed wire and preparing to advance, World War I

In the years following independence, Bulgaria increasingly militarised and was often referred to as "the Balkan Prussia".^[39][40] Between 1912 and 1918, Bulgaria became involved in three consecutive conflicts—two Balkan Wars and World War I. After a disastrous defeat in the Second Balkan War, Bulgaria again found itself fighting on the losing side as a result of its alliance with the Central Powers in World War I. Despite fielding more than a quarter of its population in a 1,200,000-strong army^[41][42] and achieving several decisive victories at Doiran and Monastir, the country capitulated in 1918. The war resulted in significant territorial losses, a total of 412,000 casualties, and a wave of more than 253,000^[43] refugees who put additional strain on the already ruined national economy.^[44]

The political unrest resulting from these losses led to the establishment of a royal authoritarian dictatorship by tsar Boris III (1918–1943). Bulgaria entered World War II in 1941 as a member of the Axis but declined to participate in Operation Barbarossa and saved its Jewish population from deportation to concentration camps.^[45] The sudden death of Boris III in the summer of 1943 pushed the country into political turmoil as the war turned against Germany and the Communist guerilla movement gained momentum.^[46] Following strikes and unrest, in September 1944 the Communist-dominated Fatherland Front took power, ending the alliance with Germany and joining the Allied side until the war ended.^[47]

Zhelyu Zhelev, the first democratically elected president of Bulgaria^[48] with George H. W. Bush (right) in 1990

The left-wing uprising of 9 September 1944 led to the abolition of monarchic rule, but it was not until 1946 when a single-party people's republic was established.^[49] It became a part of the Soviet sphere of influence under the leadership of Georgi Dimitrov (1946–1949), who laid the foundations for a rapidly industrialising stalinist state. By the mid-1950s standards of living rose significantly, while political repressions were lessened.^[50][51] The Soviet-style planned economy saw some market-oriented policies emerging on an experimental level under Todor Zhivkov (1954–1989).^[52] His daughter Lyudmila bolstered national pride by promoting Bulgarian heritage, culture and arts worldwide.^[53] In an attempt to erase the identity of the ethnic Turk minority, an assimilation campaign was launched in 1984. This resulted in the emigration of some 300,000 of them to Turkey.^[54][55]

Under the influence of the collapsing Eastern Bloc, on 10 November 1989 the Communist Party gave up its political monopoly, Zhivkov resigned, and Bulgaria embarked on a transition to a parliamentary democracy.^[56] The first free elections in June 1990 were won by the Bulgarian Socialist Party (BSP, the freshly-renamed Communist Party).^[57] A new constitution that provided for a relatively weak elected President and for a Prime Minister accountable to the legislature was adopted in July 1991. The new system initially failed to improve living standards or create economic growth—the average quality of life and economic performance remained lower than under Communism well into the early 2000s.^[58] A 1997 reform package restored economic growth, but living standards continued to suffer.^[59] After 2001 economic, political and geopolitical conditions improved greatly,^[60] and Bulgaria achieved high Human Development status.^[61] It became a member of NATO in 2004 and of the European Union in 2007.^[62][63]

Geography[link]

Bulgaria occupies a portion of the eastern Balkan peninsula, bordering five countries—Greece and Turkey to the south, Macedonia and Serbia to the west, and Romania to the north. The land borders have a total length of 1,808 kilometres (1,123 mi), and the coastline has a length of 354 kilometres (220 mi).^[64] Its total area of 110,994 kilometres (68,968 mi) ranks it as the world's 105th-largest country.^[65][66] Bulgaria's geographic coordinates are 43° N 25° E.^[67]

Left: The Balkan Mountains in central Bulgaria
Right: Maslen nos on the Black Sea coast

The most notable topographical features are the Danubian Plain, the Balkan Mountains, the Thracian Plain, and the Rhodope Mountains.^[64] The southern edge of the Danubian Plain slopes upward into the foothills of the Balkans, while the Danube defines the border with Romania. The Thracian Plain is roughly triangular, beginning southeast of Sofia and broadening as it reaches the Black Sea coast.^[64]

The Balkan mountains run laterally through the middle of the country. The mountainous southwest of the country has two alpine ranges—Rila and Pirin, which border the lower but more extensive Rhodope Mountains to the east.^[64] Bulgaria is home to the highest point of the Balkan peninsula, Musala, at 2,925 metres (9,596 ft)^[68] and its lowest point is sea level. Plains occupy about one-third of the territory, while plateaus and hills occupy 41 per cent.^[69] The country has a dense network of about 540 rivers, most of which are relatively small and with low water levels.^[70] The longest river located solely in Bulgarian territory, the Iskar, has a length of 368 kilometres (229 mi). Other major rivers include the Struma and the Maritsa in the south.^[64]

Bulgaria has a dynamic climate, which results from its being positioned at the meeting point of Mediterranean and continental air masses and the barrier effect of its mountains.^[64] Northern Bulgaria averages 1 °C (34 °F) cooler and registers 200 millimetres (7.9 in) more annually than the regions south of the Balkan mountains. Temperature amplitudes vary significantly in different areas. The lowest recorded temperature is −38.3 °C (−36.9 °F), while the highest is 45.2 °C (113.4 °F).^[71] Precipitation averages about 630 millimetres (24.8 in) per year, and varies from 500 millimetres (19.7 in) in Dobrudja to more than 2,500 millimetres (98.4 in) in the mountains. Continental air masses bring significant amounts of snowfall during winter.^[72]

Imperial eagles have a gradually growing population in Bulgaria.^[73]

Environment and wildlife[link]

Bulgaria adopted the Kyoto Protocol^[74] and achieved the protocol's objectives by reducing carbon dioxide emissions from 1990 to 2009 by 30 per cent.^[75] However, pollution from factories and metallurgy works and severe deforestation continue to cause major problems to the health and welfare of the population.^[76] Urban areas are particularly affected by energy production from coal-based powerplants and automobile traffic,^[77][78] while pesticide usage in the agriculture and antiquated industrial sewage systems produce extensive soil and water pollution with chemicals and detergents.^[79] Bulgaria is the only EU member which does not recycle municipal waste,^[80] although an electronic waste recycling plant opened in June 2010.^[81] The situation has improved in recent years, and several government-funded programmes have been put into place in an attempt to reduce pollution levels.^[79]

Bulgaria's biodiversity is conserved in three national parks, 11 nature parks^[82] and 17 biosphere reserves.^[83] Nearly 35 per cent of its land area consists of forests,^[84] where some of the oldest trees in the world, such as Baikushev's Pine and the Granit oak,^[85] grow. Its flora encompass more than 3,800 species of which 170 are endemic and 150 are considered endangered.^[86] The fauna is represented prominently by the brown bear and the jackal,^[87] while the Eurasian lynx and the Eastern imperial eagle have small, but growing populations.^[88]

Politics[link]