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Bulgaria Defence Report Q1 2007Published by: Business Monitor International Published: Mar. 1, 2007 - 38 Pages Table of Contents
AbstractAs a result of EU accession and NATO membership, Bulgaria is undergoing significant political and defence changes. In 2006, a two-month period of post-electoral deadlock was broken with the formation of a tripartite government - encompassing the two main parties on either side of the political spectrum. But how long can this 'compromise' last? Additionally, there was a presidential ballot in Bulgaria in Q406, and local elections are forthcoming in 2007, which will add further pressure to the process. One issue that has seen significant attention is Bulgaria’s commitment to stamping out corruption. The Bulgarian government fired some 46 employees from the Ministry of Internal Affairs in 2006. The Department of Inspectorate confirmed that the employees were fired as they were accepting bribes, some as high as EUR1,000, for stopping a proceeding. Bulgaria has continued to crack down on corruption after the EU announced that, despite its admission to the Union, it was still concerned about Bulgaria’s corruption track record. The fired employees were relatively low-ranking officials, and the litmus test will be whether the Bulgarian government is willing to rid corruption from the higher levels of government.Bulgaria’s regional security outlook was secure in the first quarter of 2007, but there may be shifts in the stability of Eastern Europe as a result of Ukraine adopting a relatively confrontational stance on national security. In Q10,7 Ukraine opted to develop the Hrom surface-to-surface missile system (SAM), which will have an 80km-290km range, The 290km range presents a threat to neighbouring states, such as Bulgaria. However, the immediate danger is offset by the fact that Ukraine’s defence posturing will affect many NATO member states, and as Ukraine is considering joining the alliance it is unlikely to detonate the Hrom SAMs. The Bulgarian defence industry is relatively mature but is having to compete in a fast-moving market. Bulgaria’s ties with NATO led to the trend for defence firms to increase their participation in the modernisation process. According to Defence Minister Vesselin Bliznakov, Bulgarian defence firms are now encouraged to ‘actively participate in the tenders and programmes’ of the NATO Consultation, Command and Control Agency. The aim is to expedite the interoperability process, and at the same time strengthen the local defence industry. Military expenditure is set to increase significantly in the short to medium term (1-5 years), with the 2007 budget indicating that expenditure will reach 2.38% of GDP. NATO regulations stipulate that at least 2% of GDP needs to be spent on defence modernisation. To maintain the increased expenditure, Bulgaria receives assistance from the EU, which has committed some US$8.6bn for modernisation. Get Full Details About This Report >> |
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