January 13, 2021
Bulgaria: An Overview
Bulgaria is a southeastern European country located along
Although external assessments note progress in Bulgaria’s
the Black Sea. After decades of single-party communist
anti-corruption and rule-of-law efforts, core challenges
rule and a turbulent transition period during the 1990s,
persist. For several years, Bulgaria has ranked last among
Bulgaria joined NATO in 2004 and the European Union
EU member states in Transparency International’s annual
(EU) in 2007. The United States cooperates with Bulgaria
Corruption Perceptions Index. The U.S. State Department’s
on a range of security issues. At the same time, U.S.
2020 Investment Climate Statement for Bulgaria describes
officials have urged Bulgaria to strengthen the rule of law.
corruption as “endemic, particularly on large infrastructure
Domestic Background
projects and in the energy s ector” and “in public
procurement and use of EU funds.” The influence of
Bulgaria is a parliamentary democracy. The prime minister
oligarchs and criminal groups over some decisionmaking
leads the government, and a directly elected president
processes and state institutions also is a concern.
serves as head of state. The National Assembly (Narodno
Figure 1. Bulgaria at a Glance
sabranie) is a unicameral legislature with 240 members.
Prime Minister Boyko Borisov has led the government for
most of the past decade through Citizens for European
Development of Bulgaria (GERB), a center-right party that
he founded in 2006. GERB has won the largest vote share
in every parliamentary election since 2009 but never an
outright majority. President Rumen Radev was directly
elected in 2016 with the backing of the Bulgarian Socialist
Party (BSP), the largest opposition party in parliament. The
Movement for Rights and Freedom, which draws support
primarily from Bulgarian Turks, is the third-largest party in
parliament. Several far-right parties entered government for

the first time in 2017 in coalition with GERB.
Source: Map and graphic created by CRS.
Parliamentary elections are due to be held in spring 2021,
Rule-of-law challenges and a weak media environment
and presidential elections are due to be held in fall 2021.
complicate efforts to combat corruption and organized
The current government has been weakened by corruption
crime. The judiciary is one of Bulgaria’s least-trusted
scandals. In 2019, several top officials—including GERB’s
institutions. Among other recommendations, external
deputy leader, the justice minister, and the head of the main
assessments have called for measures to strengthen judicial
anti-corruption agency—resigned over corruption
independence and increase the accountability of the
allegations related to a luxury real estate scandal. Shortly
prosecutor general, one of the country’s most powerful
thereafter, the minister of agriculture resigned over
positions. Media watchdog groups caution that Bulgaria’s
allegations of fraudulent use of EU rural development
media environment has deteriorated in recent years.
funds. Although GERB leads in preelection polls, its
Bulgaria was ranked 111 out of 180 countries in Reporters
popularity further declined amid mass protests in mid-2020.
Without Borders’ 2020 World Press Freedom Index, the
The protests, among Bulgaria’s largest since 1989, centered
bottom ranking among EU members; the organization
on corruption, state capture, and the rule of law.
describes a media environment marred by “corruption and
collusion between media, politicians, and oligarchs.”
Corruption and Rule-of-Law Concerns
Corruption, organized crime, and rule-of-law challenges
Economy
intensified during Bulgaria’s turbulent economic and
The World Bank classifies Bulgaria as an upper-middle
political transition in the 1990s. Due to concern that these
income country. Bulgaria experienced robust GDP growth
issues had not been fully addressed at the time of Bulgaria’s
during the 2000s, following economic reforms and deeper
EU accession in 2007, Brussels continues to monitor the
EU integration. Although the economy struggled in the
country’s reform progress through a transitional
aftermath of the 2008 global financial crisis, annual GDP
Cooperation and Verification Mechanism (CVM). Although
growth has been between 3% and 4% in recent years. As
the CVM has helped to bring about some institutional
elsewhere, the Coronavirus Disease 2019 (COVID-19)
reforms, some analysts question the EU’s overall
pandemic has adversely impacted the Bulgarian economy;
effectiveness in promoting the rule of law in Bulgaria.
the International Monetary Fund forecasts a 4% GDP
Some also assert that EU development funds, of which
contraction in 2020. Bulgaria aspires to adopt the euro as its
Bulgaria is the top recipient among member states, have
currency and join the Schengen area of free movement,
indirectly enabled corruption.
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Bulgaria: An Overview
which comprises 22 EU member states and 4 non-EU
Bulgaria’s 2020 estimated defense expenditure was at 1.9%
member states.
of GDP, bringing it close to NATO’s 2% target.
Although economic conditions have improved significantly
The United States and Bulgaria also cooperate on capacity-
since the 1990s, Bulgaria has the EU’s lowest GDP per
building programs to confront additional security threats.
capita. A third of its population is at risk of poverty or
Bulgaria is located along the EU’s external border and in a
social exclusion. Further compounding economic
major transit region for illicit trafficking in persons, arms,
challenges, Bulgaria has one of the world’s fastest-
narcotics, and contraband. The European migration and
shrinking populations due to emigration and low fertility
refugee crisis, which peaked in 2015, and concern over
rates; peaking at nearly 9 million in the 1980s, Bulgaria’s
returning terrorist fighters in transit to Europe have
population had decreased to about 7 million by 2019.
underscored Bulgaria’s importance to European security.
Foreign Relations
As part of NATO’s renewed focus on defending the
Closely aligned with the Soviet Union during the Cold War,
alliance’s eastern flank and deterring Russia, in 2016 the
Bulgaria adopted a Euro-Atlantic foreign policy orientation
allies approved a tailored Forward Presence in southeastern
in the 1990s. Bulgaria has contributed troops to NATO, EU,
Europe, including a Romanian-led multinational brigade.
and coalition missions in Afghanistan, Bosnia and
Bulgarian officials supported the initiative overall but
Herzegovina, Iraq, and elsewhere. It is one of three NATO
objected to a Romanian proposal for a NATO Black Sea
allies located in the critical Black Sea region, a springboard
fleet to deter Russia.
for wider Russian power projection.
Foreign Assistance
At the same time, many Bulgarian leaders have sought to
Since Bulgaria’s EU accession in 2007, most U.S.
maintain good relations—and avoid friction—with Russia.
assistance has targeted security issues, including
Most Bulgarians hold favorable views of Russia, due in part
modernizing the Bulgarian military and increasing its
to cultural and historical ties. The two countries have
interoperability with NATO forces, among other priorities.
significant trade and investment links, particularly in the
Since 2018, the United States has provided over $100
energy sector. According to the Sofia-based Centre for the
million in security assistance to Bulgaria.
Study of Democracy, actual Russian foreign direct
investment stock in Bulgaria amounts to €4.5 billion
Energy Security and Potential U.S. Sanctions
(equivalent to 11% of GDP). Some analysts caution that
The United States supports the Bulgarian government’s
Bulgaria and Russia’s dense energy and economic links, as
stated objective to become a regional energy transit “hub.”
well as alleged Russian ties to some political parties, may
At present, Bulgaria relies heavily on Russian energy
be potential channels of Russian malign influence.
imports—a dependency that partly stems from
infrastructure limitations. Bulgaria has pursued projects
Nevertheless, in recent years, Bulgaria’s relations with
aimed at diversifying energy supplies, including a gas
Russia grew strained at times over energy issues, Bulgaria’s
interconnector with Greece that would enable imports from
approval of EU sanctions against Russia, and an alleged
Azerbaijan and a stake in the planned Alexandroupolis
Russia-backed cyberattack on Bulgaria’s Central Electoral
liquefied natural gas (LNG) terminal in neighboring
Commission. Since 2019, Bulgaria has expelled several
Greece. In 2019, Bulgaria signed agreements to import U.S.
Russian diplomats on espionage charges.
LNG gas for the first time. Bulgaria is part of the Three
U.S.-Bulgaria Relations
Seas Initiative, a U.S.-backed platform among EU member
During the 1990s and 2000s, the United States provided
states in Central Europe aimed at expanding regional
significant financial assistance and diplomatic support for
connectivity, including energy infrastructure.
Bulgaria’s domestic transition and integration into NATO
At the same time, U.S. officials have expressed concern that
and the EU. The United States and Bulgaria continue to
some energy projects, in particular the extension of Russian
have good relations and cooperate on various issues.
state-owned firm Gazprom’s TurkStream gas pipeline
Members of Congress may be interested in Black Sea and
across Bulgaria, could increase reliance on Russian
energy security issues relating to Bulgaria.
supplies. In July 2020, the U.S. State Department issued
Security Cooperation
updated public guidance on Section 232 of the Countering
America’s Adversaries Through Sanctions Act (P.L. 115-
Bulgaria’s geographic location gives it strategic importance
44). The guidance clarifies that discretionary sanctions may
for an array of U.S. security concerns about Russia, the
apply to certain activities related to TurkStream’s European
Black Sea, and conflicts in the Middle East. In 2006, the
extension (second line), as well as Gazprom’s Nord Stream
United States and Bulgaria signed a Defense Cooperation
2 project. The guidance states that TurkStream’s extension
Agreement that allows for joint use of four Bulgarian
“could undermine Europe’s energy security by maintaining
military bases and rotations of up to 2,500 U.S. troops. The
Russia’s dominant share in Europe’s gas markets for
United States has invested over $50 million to upgrade
decades.” Bulgarian officials reject characterizations of
these facilities. In October 2020, the two countries agreed
TurkStream’s extension (which they call Balkan Stream) as
to a 10-year road map for continued military cooperation.
a Russian geopolitical project, describing it instead as
The United States also supports Bulgaria’s plans to replace
domestic infrastructure expansion pursuant to the
its Soviet-era military equipment. In 2019, Bulgaria
government’s energy hub ambitions.
purchased eight F-16 fighter jets from the United States for
$1.3 billion—its largest military expenditure in decades.
Sarah E. Garding, Analyst in European Affairs
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Bulgaria: An Overview

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