Updated April 16, 2021
Bulgaria: An Overview
Bulgaria is a southeastern European country located along
Although EU assessments note some 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
projects and in the energy sector” and “in public
Domestic Background
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
sabranie) is a unicameral legislature with 240 members.
The outgoing government was weakened by multiple
alleged corruption scandals involving GERB officials.
After 12 years of near-continuous rule under Prime Minister
These allegations prompted a wave of anti-corruption
Boyko Borisov and his center-right Citizens for European
protests in mid-2020.
Development of Bulgaria (GERB), Bulgaria experienced a
period of uncertainty following parliamentary elections held
Figure 1. Bulgaria at a Glance
on April 4, 2021. GERB and its main rival, the Bulgarian
Socialist Party, placed first (26%) and third (15%),
respectively, but had their weakest results in years.
Propelled by dissatisfaction with the status quo, three new
political groupings won around one-third of the vote. The
populist There is Such a People (ITN), led by singer and
TV entertainer Stanislav Trifonov, placed second (18%).
Democratic Bulgaria and Stand Up, Mafia Out, which were
involved in a wave of anti-corruption protests in 2020, won
nearly 10% and 5% of the vote, respectively. The
Movement for Rights and Freedoms, a party predominantly

supported by ethnic Turkish voters that has often had a
Source: Map and graphic created by CRS.
“kingmaker” role in Bulgarian politics, won 11% of the
vote.
Rule-of-law challenges and a weak media environment
complicate efforts to combat corruption and organized
The fragmented results may make it difficult for any party
crime. The judiciary is one of Bulgaria’s least-trusted
to form a government. Although GERB will have the first
institutions. Among other recommendations, external
opportunity to do so, most other parties have indicated they
assessments have called for measures to strengthen judicial
will not support it. The mandate to form a government
independence and increase the accountability of the
would then pass to ITN. Other possible scenarios include a
prosecutor general, one of the country’s most powerful
caretaker government and early elections.
positions. Media watchdog groups caution that Bulgaria’s
media environment is deteriorating. Bulgaria had the worst
The next government faces an array of policy challenges,
score among EU member states in Reporters Without
including mitigating the health and economic impacts of the
Borders’ 2020 World Press Freedom Index, which
Coronavirus Disease 2019 (COVID-19) pandemic,
described a media environment marred by “corruption and
addressing public pressure to tackle corruption and
collusion between media, politicians, and oligarchs.”
organized crime, and managing Bulgaria’s external
relations amid escalating tensions in the Black Sea region. Economy
Corruption and Rule-of-Law Concerns
The World Bank classifies Bulgaria as an upper-middle
income country. Bulgaria experienced robust GDP growth
Corruption, organized crime, and rule-of-law challenges
during the 2000s, following economic reforms and deeper
intensified during Bulgaria’s turbulent economic and
EU integration. Although the economy struggled in the
political transition in the 1990s. Due to concern that these
aftermath of the 2008 global financial crisis, recent annual
issues had not been fully addressed at the time of Bulgaria’s
GDP growth has been around 3% to 4%. As elsewhere,
EU accession in 2007, Brussels continues to monitor the
COVID-19 has adversely impacted the Bulgarian economy.
country’s reform progress through a transitional
GDP contracted by an estimated 4% in 2020.
Cooperation and Verification Mechanism.
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Bulgaria: An Overview
Although economic conditions have improved significantly
fighter jets from the United States for $1.3 billion—its
since the 1990s, Bulgaria had the EU’s lowest GDP per
largest military expenditure in decades. Bulgaria’s 2020
capita level in 2019. A third of its population is at risk of
estimated defense expenditure was at 1.9% of GDP,
poverty or social exclusion. Further compounding
bringing it close to NATO’s 2% target.
economic challenges, Bulgaria has one of the world’s
The United States and Bulgaria also cooperate on capacity-
fastest-shrinking populations due to emigration and low
building programs to confront additional security threats.
fertility rates; after peaking at nearly 9 million in the 1980s,
Bulgaria is located along the EU’s external border and in a
its population had decreased to about 7 million by 2019.
major transit region for illicit trafficking in persons, arms,
Foreign Relations
narcotics, and contraband. The European migration and
Closely aligned with the Soviet Union during the Cold War,
refugee crisis, which peaked in 2015, and concern over
Bulgaria adopted a Euro-Atlantic foreign policy orientation
returning terrorist fighters in transit to Europe have
in the 1990s. It has contributed troops to NATO, EU, and
underscored Bulgaria’s importance to European security.
coalition missions in Afghanistan, Bosnia and Herzegovina,
As part of NATO’s renewed focus on defending the
Iraq, and elsewhere, and it is one of three NATO allies in
alliance’s eastern flank, in 2016, the allies approved a
the strategic Black Sea region.
tailored Forward Presence in southeastern Europe,
including a Romanian-led multinational brigade. Bulgarian
At the same time, many Bulgarian leaders have sought to
officials supported the initiative overall but objected to a
maintain good relations—and avoid friction—with Russia,
Bulgaria’s
Romanian proposal for a NATO Black Sea fleet.
neighbor across the Black Sea. Most Bulgarians
hold favorable views of Russia, due in part to cultural and
Foreign Assistance
historical ties. The two countries have significant trade and
Since Bulgaria’s 2007 EU accession, most U.S. assistance
investment links, particularly in the energy sector.
has targeted security issues, including modernizing the
According to the Sofia-based Centre for the Study of
Bulgarian military and increasing its interoperability with
Democracy, actual Russian foreign direct investment stock
NATO forces, among other priorities . Since 2016, the
in Bulgaria amounts to €4.5 billion (equivalent to about
United States has provided over $160 million in security
11% of GDP). Some analysts caution that endemic
assistance to Bulgaria.
corruption, bilateral energy links, and alleged Russian ties
to some political parties and interest groups may invite
Energy Security and Potential U.S. Sanctions
greater overall Russian influence in Bulgarian affairs .
The United States supports the Bulgarian government’s
Bulgaria’s relations with Russia were occasionally strained
stated objective to become a regional energy transit “hub.”
in recent years over energy issues, Bulgaria’s approval of
Bulgaria currently relies heavily on Russian energy
EU sanctions against Russia, and an alleged Russia-backed
imports—a dependency that partly stems from
cyberattack on Bulgaria’s Central Electoral Commission.
infrastructure limitations. Bulgaria has pursued projects
Since 2019, Bulgaria has expelled several Russian
aimed at diversifying energy supplies, including a gas
diplomats on espionage charges connected to defense,
interconnector with Greece that would enable imports from
energy, and other issues. In March 2021, prosecutors
Azerbaijan and a stake in the planned Alexandroupolis
charged six Bulgarians, including current and former
liquefied natural gas (LNG) terminal in Greece. In 2019,
Ministry of Defense and military intelligence officials, on
Bulgaria signed agreements to import U.S. LNG gas for the
suspicion of passing classified information to Russia on
first time. Bulgaria is part of the Three Seas Initiative, a
such sensitive topics as Bulgaria’s defense plans, NATO,
U.S.-backed platform among EU member states in Central
the EU, and the United States.
Europe aimed at expanding regional connectivity, including
U.S.-Bulgaria Relations
energy infrastructure.
At the same time, U.S. officials have expressed concern that
During the 1990s and 2000s, the United States provided
some energy projects, such as the extension of Russian
significant financial assistance and diplomatic support for
Bulgaria’s domestic transition and integration into
state-owned firm Gazprom’s TurkStream gas pipeline
NATO
across Bulgaria, could increase reliance on Russian
and the EU. The United States and Bulgaria continue to
supplies. In July 2020, the U.S. State Department issued
have good relations and cooperate on various issues.
updated public guidance on Section 232 of the Countering
Members of Congress may be interested in Black Sea and
America’s Adversaries Through Sanctions Act (P.L. 115-
energy security issues relating to Bulgaria.
44). The guidance clarifies that discretionary sanctions may
Security Cooperation
apply to certain activities related to TurkStream’s European
Bulgaria’s
extension (second line) and Gazprom’s Nord Stream 2
location gives it strategic importance for an array
project. It states that TurkStream’s extension “could
of U.S. security concerns about Russia, the Black Sea, and
undermine Europe’s energy security by maintaining
conflicts in the Middle East. In 2006, the United States and
Russia’s dominant share in Europe’s gas markets for
Bulgaria signed a Defense Cooperation Agreement that
decades.” Bulgarian officials reject characterizations of
allows for joint use of four Bulgarian military bases and
TurkStream’s extension (which they call Balkan Stream) as
rotations of up to 2,500 U.S. troops. The United States has
a Russian geopolitical project, describing it instead as
invested over $50 million to upgrade these facilities. In
domestic infrastructure expansion pursuant to the
October 2020, the two countries agreed to a 10-year road
government’s energy hub ambitions.
map for continued military cooperation. The United States
also supports Bulgaria’s plans to replace its Soviet-era
Sarah E. Garding, Analyst in European Affairs
military equipment. In 2019, Bulgaria purchased eight F-16
IF11725
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Bulgaria: An Overview


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https://crsreports.congress.gov | IF11725 · VERSION 3 · UPDATED

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