Bulgaria: An Overview

Bulgaria: An Overview

Updated May 21, 2024
Bulgaria: An Overview
After decades of single-party communist rule and a difficult
President Radev, who appointed the caretaker governments
transition period in the 1990s, Bulgaria joined NATO in
that presided over Bulgaria for much of the past three years.
2004 and the European Union (EU) in 2007. Bulgaria’s
Black Sea location and NATO and EU memberships make
Ahead of the June 9, 2024, election, voter intention polls
it an important U.S. partner. Members of Congress may
suggest the next parliament also could be fragmented.
monitor several issues in Bulgaria with implications for the
GERB currently leads polls with around 26% support,
U.S.-Bulgaria strategic partnership, including energy
followed by PP-DB (17%), DPS (15%), Revival (14%),
security, military modernization, building resilience to
BSP (9%), and smaller parties.
external authoritarian influence, and combating corruption
Figure 1. Bulgaria at a Glance
and organized crime. Prolonged political instability in
Bulgaria may have implications for U.S. interests. Bulgaria
is scheduled to hold a snap parliamentary election on June
9, 2024—its sixth parliamentary election since April
2021—alongside elections to the European Parliament.
Domestic Overview
Under Bulgaria’s parliamentary system, the prime minister
leads the government, which exercises executive power.
The directly elected president is the head of state and
commander in chief. President Rumen Radev was reelected
to a second term in 2021 with backing from the Bulgarian

Source: CRS figure using CIA World Factbook and IMF data.
Socialist Party (BSP), which is considered to have a more
pro-Russian orientation. Dimitar Glavchev was appointed
Corruption, Organized Crime, and the Rule of Law
to lead a caretaker government in April 2024.
Corruption, organized crime, and rule-of-law challenges
Acting Prime Minister Glavchev’s caretaker government
intensified during Bulgaria’s transition in the 1990s. Citing
was preceded by the pro-Western government of Prime
concern that these issues had not been resolved when
Minister Nikolai Denkov, which comprised two blocs:
Bulgaria joined the EU in 2007, Brussels continued to
Denkov’s We Continue the Change and Democratic
monitor reforms through the Cooperation and Verification
Bulgaria (PP-DB), and Citizens for European Development
Mechanism (CVM). The CVM closed in late 2023, when
of Bulgaria-Union of Democratic Forces (GERB-SDS).
the EU assessed that Bulgaria met benchmarks in judicial
That government collapsed less than a year into its mandate
reform and in combating corruption and organized crime.
when the post of prime minister was due to rotate from
Denkov to a GERB designee. The Denkov government’s
Some observers assess that corruption and organized crime
priorities had included finalizing adoption of the euro as
remain significant barriers to good governance and
Bulgaria’s currency, joining the EU’s Schengen area of free
economic growth. Bulgaria is consistently among the worst-
movement, and countering Russian influence, particularly
scored EU member states in Transparency International’s
in Bulgaria’s security and energy sectors.
Corruption Perceptions Index. The U.S. State Department’s
2023 Investment Climate Statement for Bulgaria asserts
Bulgaria has experienced a prolonged period of political
that “high-level corruption, particularly in public
instability in recent years. A wave of anti-corruption
procurement, remains a serious concern.” The Biden
protests in 2020 and 2021 weakened then-Prime Minister
Administration has imposed sanctions on several prominent
Boyko Borisov and his political party, GERB, which had
Bulgarians for corruption (see below).
led successive governments for most of the preceding 12
years. GERB and BPS, the two largest parties in the 2010s,
Economy
lost some support to parties that ran on anti-corruption
The World Bank classifies Bulgaria as an upper-middle-
platforms, such as DB and PP, as well as the populist There
income country. Bulgaria’s strategic location, relatively low
Is Such a People (ITN) and the pro-Russian Revival. The
business costs, and EU membership have attracted
Movement for Rights and Freedom (DPS), which is mostly
investment in such areas as information technology and the
backed by ethnic Turkish voters, has had stable support.
automotive industry. Gross domestic product (GDP)
contracted by nearly 4% in 2020 but grew by 7.7% in 2021.
Polarization and close election results have complicated
Growth slowed to 3.9% in 2022 and 1.9% in 2023, due in
stable governance. GERB and PP-DB were the top finishers
part to the economic impacts of Russia’s war on Ukraine.
in recent elections and share pro-Western platforms, yet
Bulgaria is to receive €6.2 billion in EU COVID-19
relations between the two blocs are fraught. Some analysts
recovery and resilience grants and loans.
assess that prolonged instability has politically strengthened
https://crsreports.congress.gov

Bulgaria: An Overview
Bulgaria is among the poorest EU member states, although
Members of Congress may assess U.S.-Bulgaria ties in the
living conditions improved alongside EU integration.
context of U.S. policy toward the Black Sea region. Section
Barriers to growth include infrastructure deficiencies,
1247 of the National Defense Authorization Act for Fiscal
corruption, and an unpredictable legal environment.
Year 2024 (P.L. 118-31) requires the President to direct the
Demographic decline also poses a challenge; peaking at
National Security Council to develop an interagency
nearly 9 million in the 1980s, the population is now
strategy with regard to the Black Sea region and Black Sea
estimated at 6.4 million.
states (including Bulgaria) and specifies goals and
Foreign and Security Policy
objectives under such a strategy.
Closely aligned with the Soviet Union during the Cold War,
Security Cooperation
Bulgaria adopted a Euro-Atlantic foreign policy in the
In 2006, the United States and Bulgaria signed a Defense
1990s. Alongside Bulgaria’s EU and NATO integration,
Cooperation Agreement allowing joint use of four
Bulgarian leaders generally sought to preserve good
Bulgarian military facilities. In 2020, the two countries
relations with Russia. Pro-Russian sentiment and
agreed to a 10-year military cooperation road map. Since
ambivalent views of NATO persist among certain political
2022, the United States has deployed additional troops and
parties and segments of Bulgarian society. Some analysts
equipment to Bulgaria and enhanced bilateral cooperation
assess that Bulgaria’s corruption challenges, weak media
with Bulgaria on countering disinformation and bolstering
climate, and energy dependency have exposed the country
cybersecurity. The United States has provided more than
to Russian influence and hybrid threats.
$260 million in security assistance to Bulgaria since 2018,
with emphasis on military modernization, Black Sea
Despite greater political fragmentation in Bulgaria in recent
maritime domain awareness, and cybersecurity.
years, its governments have largely supported Ukraine.
Bulgaria has backed EU sanctions against Russia, agreed to
Sanctions
host a multinational NATO battlegroup, expelled dozens of
The Biden Administration has used sanctions to address
Russian diplomatic staff on suspicion of espionage, and
corruption in Bulgaria. In June 2021, the Department of the
provided military aid to Ukraine. Bulgaria also hosts around
Treasury sanctioned three Bulgarian individuals and 64
72,000 Ukrainian refugees and is seeking to reduce reliance
associated entities for corruption under the Global
on Russian energy supplies (see below). Bulgaria’s defense
Magnitsky Human Rights Accountability Act (P.L. 114-
industry produces artillery ammunition that is compatible
328, Title XII, Subtitle F; as implemented through
with Ukrainian equipment and reportedly plans to expand
Executive Order 13818). In February 2023, Treasury
production to include NATO-standard ammunition.
sanctioned five current and former Bulgarian officials and
Although measures to support Ukraine generally draw
five entities for corruption under Global Magnitsky.
support in Bulgaria’s parliament, some have been
Treasury’s press release states that the “diverse profiles and
contentious. In December 2023, for example, parliament
longstanding prominence in Bulgarian politics [of the
approved the transfer of 100 Soviet-era armored vehicles to
sanctioned persons] illustrate the extent to which corruption
Ukraine, overriding President Radev’s veto. Ukrainian
has become entrenched across ministries, parties, and state-
officials criticized Radev’s position that such transfers
owned industries.” The State Department has imposed
would prolong the conflict.
travel bans on several Bulgarian officials for corruption
Black Sea security is a key issue for Bulgaria. Bulgarian
under Section 7031(c) of annual Department of State,
officials have expressed concern about Russia’s ambitions
Foreign Operations, and Related Programs appropriations
to “dominate the Black Sea” and security threats stemming
legislation (P.L. 117-328, Division K, for FY2023).
from the war in Ukraine. Since 2022, Bulgaria has
generally welcomed NATO initiatives in the Black Sea
Energy Cooperation
region. Bulgaria hosts an Italian-led NATO multinational
The United States supports Bulgaria’s steps to end
battlegroup and plans to invest in supportive infrastructure.
dependency on Russian nuclear fuel, crude oil, and natural
In early 2024, Bulgaria, Romania, and Turkey signed an
gas supplies. U.S. liquefied natural gas (LNG) helped
agreement to cooperate on countering sea mines.
Bulgaria cope with a gas supply crisis triggered when
Russia’s Gazprom cut deliveries in April 2022. U.S.-backed
Bulgarian officials have pledged to revive long-delayed
regional projects, such as a Greece-Bulgaria interconnector
equipment upgrades and enhance defense capabilities.
enabling gas imports from Azerbaijan, and Bulgaria’s stake
Bulgaria spent an estimated 1.84% of its GDP on defense in
in a new LNG terminal in Greece are expected to help
2023 and plans to meet NATO’s 2% target in 2024. In
diversify supplies. The U.S. International Development
2019, Bulgaria agreed to purchase eight F-16 fighter jets
Finance Corporation has approved financing of up to $365
from the United States at an estimated cost of $1.67 billion;
million for an expansion of Bulgaria’s underground gas
in 2022, it moved to purchase eight additional F-16s. In
storage facility. In 2023, Bulgaria signed a memorandum of
2023, parliament approved the purchase of 183 U.S. Stryker
understanding with U.S. firm Westinghouse on expanding
vehicles for an estimated cost of $1.5 billion.
the country’s sole nuclear power plant. In February 2024,
U.S.-Bulgaria Relations
the United States and Bulgaria signed an intergovernmental
During the 1990s and 2000s, the United States provided
agreement to cooperate on developing Bulgaria’s civil
foreign aid and diplomatic support for Bulgaria’s domestic
nuclear power program and clean energy sources.
transition and integration into NATO and the EU. The
Sarah E. Garding, Analyst in European Affairs
United States and Bulgaria maintain good relations.
IF11725
https://crsreports.congress.gov

Bulgaria: An Overview

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF11725 · VERSION 8 · UPDATED