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  3 Sep 2010, Issue 2940
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Mideast Peace Talks Resume in Washington
Direct talks between Israelis and Palestinians kicked off again Thursday with pledges of support from leaders on both sides - as well as the United States - for a peace process leading to a comprehensive settlement within one year.
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Bulgaria: No Need for IMF Bailout Talks by 2012
Bulgaria's finance minister has assured that the country will have no need to hold talks with the International Monetary Fund over a bailout loan for its ailing economy in the next two years.
| read |

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  BAROMETER

What Kind of Restroom Is Bulgarian Politics? Or a Return to 'Normalcy'
By Ivan Dikov

"What is it, Maslarova? (Bulgaria's former Labor Minister – editor's note) What? You are chewing and trying to tell me something! I don't get it! You are chewing a gum! I want to tell our colleagues from the Socialist Party – we came here to debate the Europe 2020 strategy, and the moment I left the plenary hall for a while, all of them were gone! Don't you care what the other MPs think? Or you just want me to come here for a debate so that you can make speeches on TV and then go to the parliament cafe? You disappear the moment I leave. You did that during the budget debates, and again today. And your colleagues from the DPS party have to stay and blush (i.e. a word play in Bulgarian meaning also "to become red" – the color of the Socialists - editor's note) instead of you!"

This tirade was pronounced by Bulgarian Prime Minister Boyko Borisov before the MPs on Sept 2, the second day of the fall season of the Bulgarian Parliament.

In his totally unique style, Borisov scolded the Socialist Party MPs for leaving the plenary hall as soon as he took a few minutes to go to the restroom.

The real importance of the above quote, however, does not have to do with its substance – i.e. whether Borisov's ruling party GERB is good, and the opposition Socialists and the ethnic Turkish DPS are the bad guys – or the other way around. Rather, it serves to demonstrate the form and framework of Bulgarian political life, and the functioning of the much celebrated Bulgarian Western-style liberal democracy.

As the past year – August 2009-August 2010 – was the first year of the Borisov Cabinet after the July 2009 parliamentary elections, and as such was characterized by much turmoil including predictions that the minority government, which rules in a somewhat weird informal coalition, will collapse in just a few months – the start of the second year of the current Cabinet and Parliament promises "a return to normalcy" or "business as usual" in Bulgarian politics. That is, a continuation of a political framework that is dissatisfying to the people but is stable and oftentimes becomes unnoticeable. In that respect, the newly emerged "going to the restroom" metaphor of Bulgarian politics is coming in very handy.

The good news is that since 1997 – which is probably at least as important a year for Bulgaria in terms of political changes as was 1989 – Bulgaria has had three governments which served their full terms, and a fourth one is on the way (even though, there is indeed a long way to go).

Despite the fact that early elections and other political "earthquakes" within the limits of liberal democracy are not a bad thing per se, the full-term governments of the recent years have brought a new and unusual feeling for most Bulgarians. Namely, that politics is out there but that it can be largely unnoticeable. It can be just like going to a nice private restroom – one of those not so unpleasant things that one does but does not have to think of that often. This is a qualitatively new status quo compared with the highly politicized and tumultuous 1990s.

The bad news, however, is that the new government, which is no longer that new, has gotten right into the course of Bulgarian political life from the past few years rather than making any substantial revolutionary changes – as many had hoped. In that sense, Bulgarian politics appears to remain, well, the same kind of dirty place and unpleasant place; the same kind of a squalid public toilet.

The start of the new political season will bring more of the "Bulgarian democracy since 1997", i.e. little meaningful debate and little constructive criticism, little will to achieve real consensus about really important national priorities, little actual dialogue, little care on part of the ruling party about what the opposition thinks, and lots and lots of bickering motivated by backstage business and power interests masked as fake but passionate ideological positions.

Not to forget the really poor intra-party life where Bulgarian political parties – with no exceptions – are more like corruption cliques and military juntas rather than well-oiled democratic machines based on quality, debate, and competence.

One would immediately retort that is the picture in every single liberal democracy. Just as the cliché quote by Winston Churchill goes about the best argument against democracy – "a five-minute talk with the average voter."

Such a critic would be right. The flaws of the Bulgarian liberal democracy are not that different in principle from those of the typical Western democracy (this I already described above as goods news). The real problem in the Bulgarian case is the scope of these flaws – they are just much deeper and much more unabated and untamed than, say, in a nice stereotypically democratic country such as Denmark.

Sure, Bulgaria's ruling party GERB is still too young and a work in progress. Yet, it has already demonstrated much of the flaws of the older political parties – with about half a dozen major scandals in a few months, in which some of its MPs have been suspected of being involved in projects and practices designed to benefit them rather than the help nation. Those have been described as "lobbyist scandals" in the Bulgarian media but they seem to be more than that – they border outright corruption and abuse.

The glue holding the GERB front together remains Prime Minister Boyko Borisov. As his creation, the GERB party, does not seem to be very stable with respect to ensuring that nobody with dishonest intentions slipped into its ranks, Borisov has remained the only bulwark against several draft bills and other initiatives, which came close to being passed, and which would clearly be detrimental to the Bulgarian people and beneficial only to certain groups and interests.

Some of the most notorious examples were the controversial draft land act and the post-privatization control act, in which Borisov made overt personal interventions, often rushing into the Parliament in the very last minute – a situation that does not seem right for an averagely-flawed liberal democracy.

Other than that, the new political season started with a bitter exchange of words between GERB's two informal partners, the rightist Blue Coalition and the nationalist party Ataka, whose leader Volen Siderov declared enthusiastically in Parliament that he would start a guerrilla uprising if the former's leader Ivan Kostov was admitted formally to the government.

Interestingly, at the same time the Deputy Chair of the ethnic Turkish opposition centrist party DPS (Movement for Rights and Freedoms) Lyutvi Mestan expressed from the floor the idea that the Blue Coalition should join the opposition of DPS and the Socialists (BSP).

Former Prime Minister Sergey Stanishev declared BSP's intention to initiate a no confidence vote, which wrapped up the storm-in-a-teacup picture of Bulgarian politics.

The Ataka party (21 MPs) remains the staunchest ally of ruling GERB (117 MPs out of 240), and even if the Blue Coalition turns oppositional – which it likely won't – the Borisov government should remain pretty stable.

As Bulgaria is struggling with the effects of the global economic crisis, its hospitals and health care are in disarray, the education and science sectors have virtually collapsed with the latest budget cuts, the social spending does not seem to be quite sufficient, and the pension reform is a huge issue.

Yet, the country's macroeconomic framework remains stable; the budget deficit went down from BGN 1.5 B to BGN 1.23 B in July, and the trade gap has started to close slowly as the export-oriented sectors are inching up.

The Interior Ministry led by Tsvetan Tsvetanov has been staging special operations day and night, already the subject of ridicule as they have led to busting of endless mafia rings, and no actual sentences. This has been rigorously blamed on the "corrupt" judiciary, and it is yet to be seen how the special anti-mafia tribunal to be set up shortly will play out.

The Borisov government has carried out some much advertised reforms with respect to the absorption of EU funds, which are supposed to save Bulgaria from the loss of billions of euros. The positive effects, if any, of those, however, will not be felt until the very end of the Cabinet's term in 2013.

Of course, the Borisov government has won much international praise – but so had the governments of Kostov (1997-2001), Saxe-Coburg (2001-2005), and Stanishev (2005-2009). And that does very little for those actually residing in the country.

The point here is that the next two years will certainly be rather rough; but if the government remains stable and its policies – at least relatively prudent (including in publicly sensitive spheres: health, education, pension reform), with the improvement of the international economic environment, the Bulgarians should have the chance to claw their way out of the crisis, and become more hopeful for the post 2013 period.

Much of that depends on what kind of "restroom" Bulgarian politics will end up more like being – the not unpleasant, scented place in your home that you rarely have to think of, or the dirty public toilet at a Bulgarian train station where you (should) really dread going.
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BULGARIAN ETHNIC TURKS LEADER DOESN'T CONDESCEND TO GO TO COURT

As was supposed, Ahmed Dogan, leader of the political party Movement for Rights and Freedoms (DPS), did not appear in court at the start of the trial against him Thursday.

The trial was filed due to a report of the parliamentary Anti-corruption Committee, which alleges that Dogan has been involved in large-scale political corruption schemes, has breached the conflict of interests provisions and has served private interests.

The leader of DPS, which is seen as representing ethnic Turks in Bulgaria and was a member of the former three-way coalition cabinet, apparently pocketed BGN 1.5 M as a consultant of four large-scale hydroelectricity projects, funded by the state - Tsankov Kamak, Dospat, Gorna Arda and Tundzha Dam.

At the start of proceedings at the Supreme Administrative Court Thursday officials had to try Dogan in absentia.

He had envoyed his lawyer Ivan Elenski, who stated that his client has not entered into a conflict of interests and that the contents of the committee report are "figments of the imagination."

The Supreme Administrative Court on its part decreed that Dogan show evidence of professional qualification or competence in the areas of construction, mining and hydrology, for which he received consultant fees, as well as to produce a report on the consultancy work he actually did for the projects.

The Administrative Court also ordered the Council of Ministers to provide documents with which it had appointed contractors for Tsankov Kamak and the other projects and the Ministry of Economy and Energy and the National Electric Company – to provide evidence on the financing of the projects.

The parliamentary Anti-corruption Committee has to provide its proceedings leading up to the Dogan report.

The court mandated a deadline of seven days for documents to be provided by the above bodies and individuals.


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SOFIA SET TO BECOME WORLD PR CAPITAL IN NOVEMBER

Representatives of the most prominent PR Associations on international level are scheduled to meet on November 4 and 5, 2010 in Bulgaria's capital Sofia.

They will arrive for the annual meeting of the ICCO (International Communications Consultancy Organisation) Board. The meeting will be held in Bulgaria for the first time on the invitation of the Bulgarian Association of PR Agencies (BAPRA).

The forum will be attended by renown PR experts from Europe, Africa, Asia, the Americas and Australia.

Bulgarian businessmen Maxim Behar, President of BAPRA and CEO of M3 Communications Group, Inc, the largest Bulgarian PR company, stated that hosting the annual ICCO meeting is an honor and an acknowledgement. Attracting PR specialists from around the globe is an opportunity to both get in line with the current PR trends and to expand the local PR market, according to Behar, who is the only Bulgarian representative on the ICCO Board.

In May, 2010, in Barcelona, the Bulgarian PR expert was able to secure Sofia's spot as host of the ICCO meeting in a heated competition with several other European nominations such as Istanbul, Lisbon and Copenhagen.

ICCO is the largest international consulting organization, comprising 1 400 PR agencies from 28 countries around the globe, working with unified standards for quality and ethics in the PR business. ICCO offers opportunities for its members to update those standards, solve ethical issues, and share knowledge and experience. The ICCO members meet in person twice per year during the ICCO Council meetings, while ICCO Global or the Board meeting takes place every other year.

The Bulgarian Association of PR Agencies was founded in 2001. Its members subscribe to an Ethics Code focused on guaranteeing transparency, honesty, professionalism, and loyalty to clients and colleagues. BAPRA is a member of ICCO since 2005.


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FINANCE

BULGARIA: NO NEED FOR IMF BAILOUT TALKS BY 2012

Bulgaria's finance minister has assured that the country will have no need to hold talks with the International Monetary Fund over a bailout loan for its ailing economy in the next two years.

"There will be no need for a loan not only this year, but the next two years as well," Minister Simeon Djankov said on Thursday.

"In terms of its economic policy the Bulgarian government is doing just as fine as the bigger part of the EU member states," he said, adding that he expects to see a return to growth this year.

He stressed that Moody's rating agency recently rated Bulgaria as the only country in Europe and Middle Asia with a positive outlook of sovereign credit rating, while IMF forecast that the country will bottom out of the crisis by the end of the year.

Bulgaria, the European Union's poorest country, is currently going through its first recession in 12 years after a three-year lending boom stalled and foreign investments dried up.

Earlier this year, the government adopted a package of austerity measures, freezing public pays and pensions in a bid to reduce the bloating deficit.

The consolidated budget deficit exceeded BGN 1.5 B in the first six months of 2010 due to a fall in revenues and a rise in spending for social payments.

The center-right cabinet increased earlier this year its 2010 target for deficit to 4.8% of GDP on a cash basis and 3.9% of GDP under EU accounting rules, far wider than initial estimates.

The cabinet midterm fiscal policy plans envisage that Bulgaria will cut twice its fiscal shortfall to 2.5% of gross domestic product next year.

It revised up to 1% its economic growth forecast for this year, pinning its hopes on increasing exports.

The country has widely been seen as a a potential candidate for aid but has declined to take a loan from the IMF.

GERB, which swept the general elections last summer, first said they would immediately sign a stand-by agreement with the IMF to serve as a guarantee for the country's financial stability if they come to office.

Its tenure however has been marked by a series of u-turns on important issues, including IMF bailout loan.

While some of its neighbors are completely dependent on EU and IMF loans, such as Greece with its large bailout, Bulgaria's government has said the assessment of the options has shown aid is unnecessary.

According to it the country is better prepared to weather the global crisis in comparison to other European countries thanks to its prudent fiscal policy.

Bulgaria currently operates in currency board regime and the lev is pegged to the euro.


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BRUSSELS UPBEAT ECONOMIC FORECAST CHEERS BULGARIA

The European Commission has expressed optimism about the potential of Bulgaria's economy to rebound as officials figures confirmed that the eurozone economy grew by 1% between April and June.

"Bulgaria does not threaten the stability of the European economy and the European Commission is upbeat about its recovery," Amadeu Altafaj, spokesman of the European Union Economic and Monetary Affairs Commissioner Olli Rehn, told the Bulgarian National Radio on Thursday.

The statement followed the release of official figures, which showed eurozone economy grew by 1% between April and June.

The initial estimate was published last month, showing stronger growth than expected, largely due to strong exports that were boosted by a weaker euro.

The German economy, which grew by 2.2% over the three months, helped to drive the zone's overall growth.

The figures confirmed the eurozone is growing faster than the US economy, which grew by 0.4% during the quarter.

According to Altafaj the figures provide ground for confidence that the European economy will recover, investments will increase and consumption will rise.

"Bulgaria's economy is making up for lost time. The economic indices have not yet marked an increase in comparison with last year, but there is certainly an improvement over the previous quarter," Altafaj commented.

"Bulgaria still has a lot to do to catch up with the other economies, but this will depend to a large extent on external demand. Generally we remain optimistic about Bulgaria," he stressed.

The European Union's poorest country is currently going through its first recession in 12 years after a three-year lending boom stalled and foreign investments dried up.

Earlier this year, the government adopted a package of austerity measures, freezing public pays and pensions in a bid to reduce the bloating deficit.

The consolidated budget deficit exceeded BGN 1.5 B in the first six months of 2010 due to a fall in revenues and a rise in spending for social payments.

The center-right cabinet increased earlier this year its 2010 target for deficit to 4.8% of GDP on a cash basis and 3.9% of GDP under EU accounting rules, far wider than initial estimates.

The cabinet midterm fiscal policy plans envisage that Bulgaria will cut twice its fiscal shortfall to 2.5% of gross domestic product next year.

It revised up to 1% its economic growth forecast for this year, pinning its hopes on increasing exports.


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BULGARIAN FINMIN: HEALTHCARE FUNDS ARE INTACT

The cabinet of the center-right Citizens for European Development of Bulgaria (GERB) party had not used health insurance funds to cover other expenditures and does not plan to do it, according to Finance Minister, Simeon Djankov.

Djankov spoke Thursday in plenary hall, answering a question of an opposition Member of the Parliament.

The Minister explained the reserve of the National Health Insurance Fund (NZOK) is part of the State fiscal reserve and using it would mean reducing the State reserve and increasing the deficit over the threshold that was already approved, a move that would be unacceptable.

On Wednesday, Bulgaria's opposition Socialist Party (BSP) vowed to ask the Chief Prosecutor to probe how the NZOK budget surplus is used, claiming GERB wasted the funds.

According to data from Bulgaria's Central Bank, BNB, NZOK has BGN 1.2 M in reserve.

Djankov said the NZOK reserve could be used only if the Fund has a planned deficit.

During 2002, the year of its establishment, NZOK had lower expenses than the collected amount from insurance contributions – BGN 781 M, which were deposited in BNB, as the law requires.

The Minister informed that some of the funds were spent in 2005, because during this year the deposits at BNB were BGN 757 M and went down to BGN 654 M by its end, according to a planned deficit.

In 2006, NZOK began financing in full hospital care and the reserve was down to BGN 367 M.

In 2007, NZOK had an unplanned deficit and received State subsidies in the amount of BGN 339 M. In 2008, there was another subsidy – of BGN 206 M. The BNB deposits then amounted to BGN 375 M, Djankov said.

There was no need of subsidies in 2009 and 2010. In 2009, there was a planned surplus of BGN 401 M, and in 2010, there was another surplus of BGN 800 M, both for the NZOK reserve.

"If the reserve now is BGN 1.2 B, it is evident it has not been spent, and everything is going according to plan," the Finance Minister assured the MPs.


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ENERGY

UK JKX SPUDS BULGARIAN WELLS

Britain's JKX Oil & Gas, the operator of the B1-Golitza license in Bulgaria, began on Thursday a two-well drill program in the country to test targets with an estimated resource of up to 60 billion cubic feet (Bcf).

The Staro Oryahovo South R-1 well will be drilled to test a submarine fan target of Eocene age in the Kamchia Basin, south west of Varna, Bulgaria.

Drilling is planned to complete by the end of September when the rig will move to the Shkorpilovtci South West R2 location, 5km to the south.

JKX Oil & Gas signed at the end of May on a CCC-500 drilling unit through Weatherford for two wells in Bulgaria's onshore B1-Golitza Block.

The first well in the program, SOS, will test a potential 20-30 Bcf prospect at 1,500 meters, up dip of the depleted Stary Oryahovo gas field, discovered in the 1960s. Results of this well are expected in early October 2010.

The second well, S54, will also be testing a potential 20-30 Bcf prospect at a depth of 600 meters with results expected by the end of the fourth quarter of 2010.

Interests in the B1-Golitza block are held by JKX (40%), Balkan Explorers (Bulgaria) Limited (a 100% subsidiary of Aurelian Oil and Gas PLC) (30%) and Sorgenia International B.V.


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PROPERTIES

RUSSIAN REAL ESTATE WEBSITE ENTHUSIASTIC ABOUT BULGARIA

Bulgaria is a worldwide leader in residential and commercial real estate and will remain to be so, writes Russian real estate analytic portal RWay.ru Thursday.

The website lists the following five pluses of buying in Bulgaria: legislation favorable to non-resident investors, low prices and prospects for increase in worth.

The article states that in spite of a considerable drop of prices since 2008 and various other drawbacks such as property with unserviced loans, unfinished construction and overconstruction, there is a significant positive outlook for Bulgarian real estate.

It claims, largely without argumentation, that "Sooner or later the prices of real estate in Bulgaria will be comparable to those in Western Europe."

RWay.ru thus recommends that Russians be more interested in Bulgaria than in Russian Black Sea resort of Sochi which is to host the 2014 Winter Olympics.

It writes that it is not only easier to fly from Moscow to Sofia than to Sochi, but also buying in the EU gives the investor important privileges, including a two-year visa for oneself and one's family.


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BULGARIA IN EU

EU PILES UP PRESSURE ON FRANCE OVER ROMA CRACKDOWN

The European Commission has criticized France over its expulsions of Roma and has demanded more information about the crackdown.

An interim report by the commission - the EU's executive arm - says the French policy does not put enough emphasis on the individual circumstances of Roma facing expulsion.

The interim report, signed by three EU commissioners, says the commission wants France to explain "whether and to what extent the safeguards required... have been applied" as far as the Roma are concerned.

The commission says that before expulsion a person's age, health and time spent in France all need to be considered.

Almost 8,300 Romanian and Bulgarian nationals have now been expelled from France since the beginning of the year. Close to 10,000 were expelled in 2009.

French officials have said the deportations are part of a broader crackdown on illegal immigration. Additional chartered flights are scheduled for September 14 and 30.

The crackdown has sparked major criticism at home and abroad. Former French prime minister Dominique de Villepin said Sarkozy's policies had left a "stain of shame" on the French flag and were a "national indignity."

Roma from Romania and Bulgaria are allowed free passage into France if they are European Union citizens. After that, however, they must find work, start studies, or find some other way of becoming established in France or risk deportation.

The European Commission report came shortly after Justice Commissioner Viviane Reding voiced concern about the French expulsions.

"It is clear that those who break the law need to face the consequences. It is equally clear that nobody should face expulsion just for being Roma," she said on August 25.

"There is a broad consensus in Europe that what is needed now are concrete and forward-looking measures to improve the social integration of Roma.

"We need, in particular, to tackle the root causes leading Roma to abandon their homes and move across borders."


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EESC: ROMA ARE NO 'POLITICAL FOOTBALL'

The European Economic and Social Committee (EESC), consultative body of the European Union, has warned against turning Europe's Roma population into "a political football".

During a debate on September 2, which came in reaction to French government action to deport people of Roma origin residing illegally in France, the EESC called for concrete, constructive and responsible action by EU member states.

"It is regrettable that this issue, which has serious implications for human beings and for citizenship issues, has become a political football and has been exploited for short-term political advantage. This approach creates tensions and encourages the general public to support discrimination and social exclusion," said EESC President Mario Sepi during the debate.

"The European Commission sat down with the French Government to discuss the issue right after the summer break; this shows the importance of the matter," Sepi added, referring to a meeting on August 31 in Brussels.

The Committee stressed that in trying to find concrete solutions to the problem of poor, uneducated and unemployed Roma communities, the EU member states must cooperate on hammering out a consistent approach to the issue throughout the EU.

A comprehensive, Europe-wide solution has to be based on European directives on free movement of Europeans, on the prohibition of ethnicity-based discrimination and on equal employment opportunities.

This point was earlier emphasized by Viviane Reding, European Commission Vice-President and EU Commissioner for Justice, Fundamental Rights and Citizenship in her response to the French government action.

The EESC debate also referred to the Treaty of Lisbon's clauses on the protection of fundamental rights. The new legal instrument includes further measures specifically forbidding discrimination of national minorities and protecting cultural diversity within the bloc.


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EX BULGARIA PM TOP RUNNER FOR EU ENVOY TO GEORGIA - REPORT

Filip Dimitrov, former Bulgarian PM, rightist leader and senior diplomat, is among the top names circulated for the position of EU ambassador to Georgia, as foreign affairs high representative Catherine Ashton is expected to announce names of top envoys next week.

Georgia is among the countries considered as top-priority for the EU, for which ambassadors will be revealed earlier than the rest of the new EU External Action Service, expected by December 1.

It has been made known that Bulgaria has submitted at least two promising candidacies – that of Dimitrov and of diplomat Stefan Tafrov, who has also served as Bulgaria's UN envoy, as well as ambassador to the UK, France and Italy and as deputy foreign minister.

Filip Dimitrov, a lawyer by profession, chaired 1990-1994 the Union of Democratic Forces, the main rightist political movement in Bulgaria in the 90s. 1991-2 he was Bulgaria's first rightist PM after the transition. 1997-8 Dimitrov was Bulgaria's envoy to the UN, and then 1998-2001 he served as the country's ambassador to the US.

Throughout August, Bulgarian media have been reporting that Dimitrov has better chances over Tafrov and has made a "brilliant" showing in interviews.

Wednesday Euobserver.com reported that Ashton has five top choices for the Tbilisi position, including Dimitrov. The rest are John Kjaer, a Danish-origin European Commission official in charge of the body's policy for post-Soviet countries; Eric Fournier, the current French ambassador to Georgia; Normunds Popens, Latvia's ambassador to the EU; and Wojciech Zajaczkowski, Poland's ambassador to Romania.

End of last week Euractiv reported that Poland has diminished chances to get the position after backing off from unconditional support to Georgia and warming up to Russia.

EUobserver reports that French Fournier seems to be Ashton's favorite because of his key role in mediation during the 2008 war between Georgia and Russia.

On the other hand, sources have reported that the EU would want a representative who comes from a Black Sea region country – a requirement that Dimitrov satisfies.

Georgians on their part are likely to prefer a person with stronger influence in the EU to secure the country a good position in the integration process.


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BULGARIA GIVES NEW TRY AT EU PHARE FUNDS RELEASE

Bulgaria has asked the European Commission to reinstate more funds under its operation PHARE program, according to the Minister for EU Funds, Tomislav Donchev.

The Minister declined offering exact amounts,

About EUR 130 M under the program were frozen during the term of the previous, socialist-led cabinet. With the arrival of the center-right government of the Citizens for European Development of Bulgaria (GERB) party, its Finance Minister, Simeon Djankov, was able to unblock some of these funds at the end of 2009. The official request was for BGN 91 M, but it remains unclear how much were granted back by the EC,

In addition to freezing the PHARE funds, the EC, at the time, revoked the license of two Bulgarian agencies – at the Finance and Regional Development Ministries – to handle these funds. Experts say off the record that Bulgarian has no chance to get them back, and Donchev, himself, commented, he is unsure of the outcome.
The PHARE money paid so far amounts currently to EUR 615 M, or 84% of the contracted EUR 731 M. The total PHARE budget was for EUR 1.06 B.

The PHARE program is one of the three pre-accession instruments financed by the European Union to assist the applicant countries of Central and Eastern Europe in their preparations for joining the European Union.

Its objectives include: strengthening of public administrations and institutions to function effectively inside the European Union; promoting convergence with the European Union's extensive legislation and reduving the need for transition periods, promoting economic and social cohesion.


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BULGARIAN EU FUNDS MINISTER HOPES FOR 75% ISPA ABSORPTION

The Bulgarian Minister for EU Funds, Tomislav Donchev, is hoping that the absorbed funding under the ISPA program will reach 75% by the end of the program.

"So far, we have absorbed 56% of the contracted funds under the ISPA program. Our expectation is that by the end of the program, we will have absorbed 75% of the funds under the program," Donchev said Thursday.

He also announced that next week Bulgaria will sign an agreement with Switzerland, according to which Bulgaria will receive financial support amounting to CHF 76 M for four spheres that are priority for the country.

Donchev has assuaged the fears that Bulgaria will lose large sums of money under the ISPA program and pointed out that it was too early to make final conclusions.

The Minister for EU Funds has stated that there are some projects that are being negotiated for extensions.

"We are still negotiating on the four projects in the Bulgarian cities of Varna, Shumen, Svilengrad and Balchik. My personal expectation is that at least two of them would receive an extension until the end of 2011," Donchev said.

He explained that the unfinished parts of the projects would be transferred to the operational program Environment.

"With this transfer, in the final stage of the execution of the program, I expect the percentage of the absorbed amount to exceed 70%, maybe even 75-76%," the minister said.


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DOMESTIC

BULGARIAN PM: I JUST WENT TO WC, THEN SOCIALISTS ESCAPED FROM PLENARY

The second sitting of the Bulgarian Parliament for its new fall session was marked by an exchange of vivid remarks between PM Borisov and representatives of opposition Socialist Party over lack of involvement.

Just after presenting a report on the government's participation in EU decision-making for the first half of 2010, PM Boyko Borisov left plenary.

This provoked BSP Deputy-Speaker of Parliament Georgi Pirinski to call for an intercession until the PM comes back to the hall for the debate and accused him of flagrant disrespect for Parliament.

Then socialist MPs left the plenary hall. Leader of rightist Democrats for Strong Bulgaria Ivan Kostov commented that should they return, the sitting will turn into a "true vaudeville."

PM Borisov came back promptly and in his turn accused socialists of lack of involvement and unwillingness to hear the statements of fellow MPs from other party.

"I just asked to be shown to the toilet, and then your whole socialist group slipped out of plenary to have coffee and smoke," stated the Bulgarian PM.

He further expressed discontent at BSP MP and former Minister of Labor Emiliya Maslarova over addressing him indistinctly while chewing gum.


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PM HOPES FOR RESOLUTION OF INTRA-MUSLIM TENSION IN BULGARIA

Bulgarian PM Boyko Borisov met Thursday Nedim Gendzhev, recently restored as Chief Mufti in Bulgaria, and his predecessor Mustafa Alish Hadzhi.

The two clerics have been engaged in a long-drawn dispute about the spiritual leadership of Bulgaria's Muslim community.

In October 2009, the National Muslim Conference elected Mustafa Alish Hadzhi for Chief Mufti. However, Gendzhev appealed the Conference's vote and in May 2010 the Bulgarian Supreme Court of Cassations decided to reinstate him at the post. A majority of Bulgaria's muftis insist Hadzhi is the only legally elected Chief Mufti in Bulgaria.

Since May, Muslims have organized a wave of protests around the country in support of Hadzhi and against Gendzhev.

During Thursday's meeting both parties were thankful to PM Borisov for his personal engagement with the issue and presented their viewponts.

The parties considered the possibility of calling a new National Muslim Conference.

Unlike in previous cases that have involved the Ministry of Interior pitted against Bulgaria's judiciary, PM Borisov stated that the government cannot intrude into the work of the judicial system.

He stated that confrontation is to the benefit of no-one and should be swiftly resolved.


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BULGARIA'S FOOD SAFETY AGENCY TO OPERATE FROM 2011

Bulgaria's Food Safety Agency is scheduled to begin operating on January 1, 2011, the Bulgarian Agriculture Minister Miroslav Naydenov has announced.

Naydenov explained Thursday that the agency will have 28 regional centers around the country.

The minister has stated that the new agency will include the currently existing National Veterinary Service, National Plant Protection Service, National Grain and Grain Products Service, and this part of the public health body RIOKOZ that is responsible for the food safety.

The members of the new agency, together with the regional structures, are expected to be 400 less than the members of the four services that existed until now. Naydenov has explained that the reason for this is the reduction of the repeating units.

"At the moment we are working on a bill for the Food Safety Agency and on the rules for its operation," Naydenov said, adding that the head of the new agency would be appointed by the Council of Ministers.


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SOCIETY

BULGARIA'S TOP PROSECUTOR: WE ARE NOT CABINET'S LEGAL COUNCIL

Bulgaria's Chief Prosecutor, Boris Velchev, stated Thursday he is yet to receive the audits of the power utilities from the energy watchdog DKEVR.

Velchev told reporters he has been expecting those audits for two days now, and would read them carefully, but presently he could not figure out the role of his office in the matter.

On Tuesday, the Head of the State Commission for Energy and Water regulation (DKEVR), Angel Semerdzhiev, announced the audits of the three power utilities have already been sent to the Prosecutor's Office.

The audits, which found a number of violations on the part of Austrian-owned EVN, German-owned E.ON and Czech-owned CEZ, were prepared in July 2010, in the eve of the approval of new electric power prices for the next year. The three power utilities were blamed then by the energy watchdog of draining revenues by outsourcing through affiliate businesses.

At the time, Semerdzhiev stated he did not intend to give the results to the prosecutor, and would do so only if the latter becomes interested in them. Later, Prime Minister, Boyko Borisov, declared at a special media press conference that he had ordered their submission with the Prosecutor's Office.

The Chief Prosecutor further said Thursday that he would return the audits to the sender if they do not contain any incriminating evidence, pointing out the Prosecutor's Office should not be looked upon as the State's legal council in all matters. One should not expect from prosecutors to work on everything that gets thrown across their desks and they should not be required to establish a crime on their own, according to Velchev.

On another topic, the Chief Prosecutor reported that the Inspectorate at the Supreme Prosecutor's Office of Cassations has launched a probe in connection to the tax declaration of Deputy Sofia City Prosecutor, Roman Vasilev, where he reported revenues of BGN 80 000 from stock exchange deals.

The probe was triggered by an investigative report from the beginning of July in which journalist Sasho Dikov voiced suspicions the stock exchange gains were actually a way to legalize bribes.

Velchev explained there are other public figures declaring similar profits, and there is nothing illegal in investing in stocks.


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TRANSPORT MINISTER PROBED BY BULGARIAN FBI OVER PUBLIC TENDER

Bulgaria's State Agency for National Security (DANS) is probing the Transport Minister, Aleksander Tsvetkov, according to a publication of the Bulgarian daily Standart.

The article titled "The Dragoman Railway Station Turned Treacherous for a Minister," informs Tsvetkov had announced a murky public tender for the construction of a multi-functional terminal at the railway station in the town of Dragoman.

"There are suspicions the State is pouring BGN 6 M in a haphazard project, designed without an expert analysis and economic grounds," "Standart" writes, citing their own sources.

The newspaper approached unanimous builders, who said the project can have a cost three times lower than the announced BGN 6 M. They explain the overblown price with the lack of preliminary and thorough analysis.

The contractor for the terminal is the State company "Transport Construction and Recovery." The deadline is 3 months and the terminal must be completed by the beginning of October.

The State company is in a consortium with "Glavbolgarstroy," the winning bidder in the tender for the renovation of the Plovdiv – Burgas railroad segment, which was annulled by the European Commission. The EC established Desislava Georgieva, who is listed by the Public Tender Agency as a violator in the absorption of EU funds, was a member of the selection commission.

The case is still under investigation by DANS, the police, and the Minister for EU Funds, Tomislav Donchev.


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BULGARIAN-MACEDONIAN MOTHER FAILS AS ENGLISH TEACHER - REPORT

The Macedonian mother with Bulgarian passport, Spaska Mitrova, had been able to keep her job as English language teacher in Bulgaria for just a couple of weeks.

The news was reported Thursday by the Bulgarian daily "24 Chassa" (24 Hours).

Mitrova became publicly known for her 3-month imprisonment by the Macedonian authorities and her year-long trials over custody rights. Her case fired a huge debate between Bulgaria and Macedonia. Many Bulgarians have participated in protests against the sentence because they believed the case was politically motivated.

After the trial, Mitrova moved to Bulgaria and for a while lived in the mountain resort of Bansko, in the house of an activist of the nationalist VMRO party, which supported her during the entire ordeal. She then moved to the southern city of Blagoevgrad, where the City Hall found her a job and a municipal apartment.

Mitrova was hired as an English language teacher at the "Alexander" Language School by its director, who is also the local leader of the ruling GERB party. The classes are part of a project of the Labor Agency titled "I Can."

The employer told "24 Chassa" Mitrova asked to have Mondays and Fridays off and was absent several times, prompting the school to find a substitute. The students were the ones who said they liked the substitute better and asked for Mitrova's replacement.

"I suppose she has been used to teaching kids and had a hard time adjusting to adult learners. She was on a trial contract and we did not renew it," the director us quoted saying.

Mitrova recently joined the European Parliament as an assistant to the MEP from the far-right nationalist party "Ataka" Dimitar Stoyanov. She has graduated with a major in "English Philology" from the Southwestern University in the Bulgarian city of Blagoevgrad "Neofit Rilski". Her job in the European Parliament is to consult Stoyanov on Macedonian issues.

"24 Chassa" further reports Mitrova has been seen lately driving around Blagoevgrad in a car belonging to "Ataka," whose leader, Volen Siderov, is Stoyanov's step father.


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CEZ POWER UTILITY SUPPORTS BULGARIA'S DISADVANTAGED KIDS

The Czech-owned power utility, CEZ, one of the three in Bulgaria, is offering financial support for the first ever sports fest for disadvantaged children whose parents work in the energy sector.

The initiative belongs to the National Sports Association "Podkrepa" (Support). In a letter sent to the media Thursday, the CEZ management states the company wishes to assist both its employees and Bulgaria's disadvantaged children.

The fest, under the motto "We Are One Family," will be held between September 7 and 12 at the beach resort town of Primorsko. The participants are 19 children with health problems and disabilities, orphans, or children who have lost one parent during a work-related incident.

The children, ages 5 to 16, will compete in chess and other board games, petangue, darts, and ball games. There will be two psychologists available to talk to the children.

Other sponsors are the National Electric Company (NEK), the Electricity System Operator (ESO) and the "Bobov Dol" mines.


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ENVIRONMENT

EXPERTS CONFIRM HARMFUL RADIATION AT BULGARIAN BEACH

The sand from the Bulgarian Black coast bay "Vromos" is radioactive and harmful for beach goers, according to experts from the Environment and Health Ministries.

The news was announced Thursday by the Governor of the Region of Burgas, Konstantin Grebenarov, who was the recipient of the experts' letter.

The letter asks local authorities to make people aware of the results and place signs warning visitors to not use the beach.

The radiation level is twice higher than the norm for the southern Black Sea coast, but the danger is not in the air, rather in the sand which has uranium and radium. They came from the now-closed nearby mine which deposited large amounts of radioactive waste in the bay between 1954 and 1977.

The experts further point out the sea water is not radioactive, but a couple of days stay at the beach could be harmful.

The increase of radiation levels in the area over the last three years is attributed to some waste that has not been completely removed.

The Governor says the warning signs, placed at "Vromos," have been removed by local owners, but will be mounted again.

In the beginning of August, Grebenarov, issued an order banning the use of the beach located between the municipalities of the city of Burgas and the town of Sozopol, near the town of Chernomorets. At the time Grebenarov said he made the decision after consulting with experts from the Health Ministry and the Environmental Agency.

The order triggered large-scale protests among hotel and land owners around the bay, saying the order serves business interests and aims at lowering property prices in the area.

A separate measurement, done by the Executive Environmental Agency in mid-August, yielded the same results.


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CULTURE

DEGAS' PLASTIC WORK DISPLAYED AT BULGARIAN NATIONAL GALLERY

The Bulgarian National Art Gallery in Sofia is hosting an exhibition of what is said to be a significant part of Edgar Degas' sculptural oeuvre.

The exhibition will officially open Thursday at 18.30 EET and will last through October 29.

Consisting of 74 statues (out of around 150 ever created by the artist), it revolves around the themes of dance, horses and female dress – topics dear to Degas’ work as a whole.

The collection is owned by the M.T. Abraham Center for the Visual Arts in the USA and thus far has been shown only in Tel Aviv and Athens.

It features a bronze cast of Degas' "Little dancer of fourteen years," a wax sculpture which is the only statue that the French artist himself displayed while alive.

The exhibition is curated by former National Gallery director Boris Danailov. It is organized by the Embassy of France in Bulgaria and the Bulgarian Ministry of Culture.


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HEALTH

BULGARIAN MINISTER: HEALTHCARE IS SICK!

Long have I said that Bulgarian healthcare is sick, curably though with a delay, stated Bulgarian Minister of Public Health Anna-Maria Borisova.

She was speaking in an interview for bTV regarding the state of the healthcare system, which is said to be one of the cabinet’s and parliament’s top priorities for the new political season launched September 1.

Borisova expressed concern that “for the last 10 years nothing has been done” to reform the system, and vowed to take “radical measures.”

The health minister reiterated her earlier idea to develop pre-hospital care to reduce the burden on hospitals and pointed out various ways in which hospitals are not efficiently used.

She stated some hospitals are working well, but others that do not cover adequate standards will need to be closed. Thus she contributed to a long trail of self-contradicting statements of hers, in which she was stating that hospitals will be closed only to deny it a few days later.

Borisova was not specific when asked about low salaries and wages in the health sector and did not state concrete measures to stop the outflow of workforce from the sector out of Bulgaria.

The health minister stressed on the need to enforce that citizens pay their health insurance contribution to keep the system running.


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SPORTS

ENGLAND FOOTBALL IN DISARRAY BEFORE BULGARIA MATCH - REPORT

Bulgarian media report Thursday on tensions in the English national football team which have led to a acrimonious anti-Capello piece in the Daily Mirror.

Friday England and Bulgaria are clashing at Wembley for their first Euro 2012 qualifier.

The English team has been pestered by injuries that have left out players such as John Terry, Frank Lampard, Peter Crouch, as well as two of England's goalies – Scott Carson and Ben Foster – leaving the team with only one active goalkeeper for Friday's game.

The Daily Mirror article, entitled "Fabio Capello has lost his players and now he will lose his job", suggests that some players are willingly not competing for England because of tensions within the team, Capello's unpopular approaches and his alleged overall low motivation.

The material goes on to unconditionally ask that Capello leave, no matter what the result of the game against Bulgaria and next Tuesday's qualifier against Switzerland.

Daily Mirror further even writes that Capello is a deterrent for young future English players to join their national team.

Earlier this week it was reported that William Hill announced bets on whether Fabio Capello will be fired after the next two matches.

These reports notwithstanding players such as Gareth Barry and Joe Hart came out with statements in support of their manager and of the unity of England's team.

Thursday the Bulgarian team flew off for London. Manager Stanimir Stoilov expressed optimism and stated the team must play with full force in its first game.

He stated his players will try to "close" the English as efficiently as possible and will seize every opportunity to score a goal.

Stoilov did not want to comment the situation of fellow England manager Capello and said the game was no rivalry between two managers.


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BULGARIA'S PETROV PLOTS ENGLAND'S DOWNFALL

Bulgarian Bolton winger Martin Petrov has warned that Bulgaria is capable of springing a nasty surprise on the England squad at Wembley on Friday because Fabio Capello "doesn't have a team" despite its very good players.

"Everyone knows that England have names and very good players. If you take every player from the team, they are very good players," Petrov said, as cited by The Telegraph.

"But I don't think they have a team. I don't know why. In the middle and up-front, they have big names, they have a big manager too, but they just don't do it.

"Is it a good time to play England? We don't know yet because there are young players coming into the team who will want to show the manager that they deserve their place and, after their worst World Cup, everyone will want to show it.

"It's a difficult time for England. For us, it's OK. There is pressure for us, too, because we want to qualify, but I think there is more pressure for England because they are the big favourites.

"We also have some very good players, though, and, if we play like a team, stay compact, especially in the first minutes, I think we have a chance."

Bulgaria, positioned 36 places below England at 43 in the Fifa World Rankings, must plot England's downfall without the country's leading player, Dimitar Berbatov.

The Manchester United forward announced his international retirement in May at the age of 29 citing "many different reasons" and Petrov, Berbatov's close friend, does little to dispel the apparent omerta surrounding the decision by insisting it is not a matter for discussion.

"It's better we don't speak, I'm not the family of Berbatov," Petrov said. "I told the Bulgarian journalists I would not discuss this.

"If you have a good name, go to your national team and play badly it's hard for everyone, but especially for him being a Manchester United player.

"He phoned me to say he is going to retire but nothing more. If I asked him... it's personal. Everyone wants Berba in the team. He's always welcome to the team, but I don't think it will happen."


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GERRARD ADMITS TO PRESSURE BEFORE FACE OFF WITH BULGARIA

Liverpool midfielder Steven Gerrard has admitted England players are feeling the pressure ahead of their European Championship qualifier against Bulgaria on Friday in the wake of a dismal World Cup performance.

"The players and the manager realize we are under pressure at the moment, which is normal after under-performing at the World Cup," Gerrard, who will again captain England in the absence of injured first-choice skipper Rio Ferdinand, said at England's team hotel on Thursday.

"A win always helps in this situation. That is the challenge. The difficult thing is there is slightly more pressure on us this time. But we have to cope with that and handle it.

"Hopefully the booing is behind us now and we can give a good performance. We certainly have the exciting players in the squad to get off to a winning start.

"We qualified really well for the World Cup playing good attacking football and if we can put in a good performance and take maximum points, we will go into the next game with confidence."

Gerrard made it clear he is ready to take on the responsibility for his team, which will suffer from the absence of injured stars John Terry, Rio Ferdinand, Frank Lampard and Peter Crouch.

"I'm really enjoying being captain," he said. "I've captained Liverpool for many years and thrive on responsibility. My performances for England have been good with the armband.

"It does make it more difficult to have injuries because they are fantastic players with big experience.

"But now they are injured it puts a bit more responsibility on myself and the other experienced players to try to pull the lads together and get two wins.

"After the team under-performed in South Africa there have been changes made. And, with injuries to big players, it's a fantastic opportunity for people to stake a claim and give the manager something to think about when we next get together."


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BULGARIA'S PIRONKOVA DROPS OUT OF US OPEN

The Bulgarian top female tennis player Tsvetana Pironkova has dropped out in the second round of the last for this year Grand Slam championship US open.

On Wednesday, the 22-year-old Bulgarian suffered a 4-6, 0-6 defeat by the 24-year-old Mandy Minella from Luxembourg.

Pironkova was not in a good shape. She has problems with her service and made two double faults in the first set.

However, for reaching the second round, the Bulgarian gained 100 ATP ranking points, which currently place her 31st in the world.


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LYUBOSLAV PENEV NAMED BULGARIA'S LITEX COACH

Bulgarian champions Litex Lovech has appointed Lyuboslav Penev its head coach a month after Angel Chervenkov was sacked for the team's failure in the Champions League, according to a statement on the club's site.

In the middle of January Lyuboslav Penev resigned from his post of CSKA Sofia coach along with the whole coaching staff of the top Bulgarian club.

Lyoboslav Penev's tenure in charge of CSKA was tainted with controversy including a travel ban over his default BGN 2 M loan from EIBank.

Lyuboslav Penev was appointed CSKA Sofia coach in the spring of 2009 after replacing his legendary uncle Dimitar Penev.


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CRIME

BULGARIA'S PROSECUTOR: 'KILLERS' CASE NOT OVER

Bulgaria's Chief Prosecutor Boris Velchev has assured that the "Killers" case is not over and that development should be expected in the next weeks.

The Killers gang is believed to be behind several assassinations around the country, including the murder of controversial football club president Yuriy Galev in June and businessman Rumen Rachev at the beginning of July last year.

According to Velchev, the people from the gang that were released,were dangerous. They have been arrested in another case, connected to the first one, and four out of the five detained remained in jail for the murder of Rachev.

Velchev has expressed his firm belief that the crime ring has most probably been involved in more than one assassinations.

"For now, they have been charged with only two murders. In the next few months, we will see the total number of the charges," he said.

He has commented on the motive of the Court of Appeals, which at the beginning of August ruled the release on bail of four out of the five detained, saying that he did not accept as normal the tone, in which the court gives its rulings.

"The tone always has to include the professional ethics," Velchev said.

He also said that disputes and disagreements between the Prosecutor's Office and the police happen often.

"It has to be clear that the police do not present evidence in the court, the Prosecutor's Office does, after it decides that they are enough," Velchev said, adding that prosecutors should, in general, talk more carefully and modestly.


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BULGARIAN POLICE BUST ILLEGAL TREASURE HUNTING GROUP

Employees of Bulgaria's Unit for Combating Organized Crime (GDBOP) busted a group of illegal treasure hunters, the Interior Ministry press office informs Thursday.

The group was acting in the area of the antique settlement in the vicinity of the village of Koshava near the northwestern Danube city of Vidin and dealt with illegal archeology digs and illegal trading of antiques.

The special operation was carried out Wednesday and three men, 39, 42 and 44, were arrested.

The raid at their residencies in Vidin discovered 26 coins dating form the time of the Ottoman Empire and from Antiquity, antique bronze vessels, metal detectors and an illegal gas pistol.

The seized objects are examined by experts and the probe in the case continues.


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SHOW BUZZ

US AMBASSADOR TO SOFIA STARS IN HIT BULGARIAN TV SERIES

The US Ambassador to Bulgaria, James Warlick, is turning into a TV star Thursday with a part in Bulgaria's hit series "Staklen Dom" (The Glass House).

The footage will be taken inside the building of the American Embassy in Sofia. This would not be Warlick's sole appearance during the new season, according to producers. He will film a total of 6 scenes.

The Ambassador is known to be a huge fan of the series and even organized a reception for its creators at the Embassy.

As expected, Warlick will portray the American Ambassador, but not himself. His character is the one of the good guy, who, however, sometimes breaks the rules, compromises in order to help others and seeks borderline solutions.

The Ambassador stated before the filming he was ecstatic about meeting another character - Kolev, the agent from the State Agency for National Security (DANS) portrayed by Bulgarian actor, Atanas Atanasov.

The new season is titled "Time for Truth" and producers are strictly keeping the storyline secret. It is known the screenwriters have done several versions and the final one is yet to be selected.

"The Glass House" is a family and criminal drama, a reflection of today's real-life Bulgarian society.

The saga involves the story of Kamen Kasabov (Kalin Vrachanski), who returns from the United States for the 60th birthday of his long-estranged father. They have not been in touch for 18 years at the time Kamen lands in Sofia.

The father Dimitar Kasabov (Stefan Danailov) is the majority owner of a shopping mall and a man of strong character. The plot thickens when Kasabov Sr. becomes victim of a gangland murder, and only later the viewers find out he survived and is in London, under a witness protection program. Other twists of fate, and secret love relationships change everyone's lives in the small world of the mall forever.

In the new season, the key event is the return of Kasabov Sr. and the revelation of dark secrets from the past of several characters, casting shadows even on the most perfect ones. The series will also feature a new character – Charlie (Bulgarian heartthrob, Asen Blatechki), a con with a long criminal record.

The plot involves large-scale criminal conspiracy, scams worth millions, love, murder and kidnapping.


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DESTINATIONS

I FORESEE YOU ENJOYING SOUTHWESTERN BULGARIA...

Click here to read the story:
www.novinite.com/view_news.php?id=119785


VIEWS ON BG

FIVE REASONS NOT TO WRITE OFF BULGARIA AGAINST ENGLAND

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www.novinite.com/view_news.php?id=119772


EDITORIAL

WHAT KIND OF RESTROOM IS BULGARIAN POLITICS? OR A RETURN TO 'NORMALCY'

"What is it, Maslarova? (Bulgaria's former Labor Minister – editor's note) What? You are chewing and trying to tell me something! I don't get it! You are chewing a gum! I want to tell our colleagues from the Socialist Party – we came here to debate the Europe 2020 strategy, and the moment I left the plenary hall for a while, all of them were gone! Don't you care what the other MPs think? Or you just want me to come here for a debate so that you can make speeches on TV and then go to the parliament cafe? You disappear the moment I leave. You did that during the budget debates, and again today. And your colleagues from the DPS party have to stay and blush (i.e. a word play in Bulgarian meaning also "to become red" – the color of the Socialists - editor's note) instead of you!"

This tirade was pronounced by Bulgarian Prime Minister Boyko Borisov before the MPs on Sept 2, the second day of the fall season of the Bulgarian Parliament.

In his totally unique style, Borisov scolded the Socialist Party MPs for leaving the plenary hall as soon as he took a few minutes to go to the restroom.

The real importance of the above quote, however, does not have to do with its substance – i.e. whether Borisov's ruling party GERB is good, and the opposition Socialists and the ethnic Turkish DPS are the bad guys – or the other way around. Rather, it serves to demonstrate the form and framework of Bulgarian political life, and the functioning of the much celebrated Bulgarian Western-style liberal democracy.

As the past year – August 2009-August 2010 – was the first year of the Borisov Cabinet after the July 2009 parliamentary elections, and as such was characterized by much turmoil including predictions that the minority government, which rules in a somewhat weird informal coalition, will collapse in just a few months – the start of the second year of the current Cabinet and Parliament promises "a return to normalcy" or "business as usual" in Bulgarian politics. That is, a continuation of a political framework that is dissatisfying to the people but is stable and oftentimes becomes unnoticeable. In that respect, the newly emerged "going to the restroom" metaphor of Bulgarian politics is coming in very handy.

The good news is that since 1997 – which is probably at least as important a year for Bulgaria in terms of political changes as was 1989 – Bulgaria has had three governments which served their full terms, and a fourth one is on the way (even though, there is indeed a long way to go).

Despite the fact that early elections and other political "earthquakes" within the limits of liberal democracy are not a bad thing per se, the full-term governments of the recent years have brought a new and unusual feeling for most Bulgarians. Namely, that politics is out there but that it can be largely unnoticeable. It can be just like going to a nice private restroom – one of those not so unpleasant things that one does but does not have to think of that often. This is a qualitatively new status quo compared with the highly politicized and tumultuous 1990s.

The bad news, however, is that the new government, which is no longer that new, has gotten right into the course of Bulgarian political life from the past few years rather than making any substantial revolutionary changes – as many had hoped. In that sense, Bulgarian politics appears to remain, well, the same kind of dirty place and unpleasant place; the same kind of a squalid public toilet.

The start of the new political season will bring more of the "Bulgarian democracy since 1997", i.e. little meaningful debate and little constructive criticism, little will to achieve real consensus about really important national priorities, little actual dialogue, little care on part of the ruling party about what the opposition thinks, and lots and lots of bickering motivated by backstage business and power interests masked as fake but passionate ideological positions.

Not to forget the really poor intra-party life where Bulgarian political parties – with no exceptions – are more like corruption cliques and military juntas rather than well-oiled democratic machines based on quality, debate, and competence.

One would immediately retort that is the picture in every single liberal democracy. Just as the cliché quote by Winston Churchill goes about the best argument against democracy – "a five-minute talk with the average voter."

Such a critic would be right. The flaws of the Bulgarian liberal democracy are not that different in principle from those of the typical Western democracy (this I already described above as goods news). The real problem in the Bulgarian case is the scope of these flaws – they are just much deeper and much more unabated and untamed than, say, in a nice stereotypically democratic country such as Denmark.

Sure, Bulgaria's ruling party GERB is still too young and a work in progress. Yet, it has already demonstrated much of the flaws of the older political parties – with about half a dozen major scandals in a few months, in which some of its MPs have been suspected of being involved in projects and practices designed to benefit them rather than the help nation. Those have been described as "lobbyist scandals" in the Bulgarian media but they seem to be more than that – they border outright corruption and abuse.

The glue holding the GERB front together remains Prime Minister Boyko Borisov. As his creation, the GERB party, does not seem to be very stable with respect to ensuring that nobody with dishonest intentions slipped into its ranks, Borisov has remained the only bulwark against several draft bills and other initiatives, which came close to being passed, and which would clearly be detrimental to the Bulgarian people and beneficial only to certain groups and interests.

Some of the most notorious examples were the controversial draft land act and the post-privatization control act, in which Borisov made overt personal interventions, often rushing into the Parliament in the very last minute – a situation that does not seem right for an averagely-flawed liberal democracy.

Other than that, the new political season started with a bitter exchange of words between GERB's two informal partners, the rightist Blue Coalition and the nationalist party Ataka, whose leader Volen Siderov declared enthusiastically in Parliament that he would start a guerrilla uprising if the former's leader Ivan Kostov was admitted formally to the government.

Interestingly, at the same time the Deputy Chair of the ethnic Turkish opposition centrist party DPS (Movement for Rights and Freedoms) Lyutvi Mestan expressed from the floor the idea that the Blue Coalition should join the opposition of DPS and the Socialists (BSP).

Former Prime Minister Sergey Stanishev declared BSP's intention to initiate a no confidence vote, which wrapped up the storm-in-a-teacup picture of Bulgarian politics.

The Ataka party (21 MPs) remains the staunchest ally of ruling GERB (117 MPs out of 240), and even if the Blue Coalition turns oppositional – which it likely won't – the Borisov government should remain pretty stable.

As Bulgaria is struggling with the effects of the global economic crisis, its hospitals and health care are in disarray, the education and science sectors have virtually collapsed with the latest budget cuts, the social spending does not seem to be quite sufficient, and the pension reform is a huge issue.

Yet, the country's macroeconomic framework remains stable; the budget deficit went down from BGN 1.5 B to BGN 1.23 B in July, and the trade gap has started to close slowly as the export-oriented sectors are inching up.

The Interior Ministry led by Tsvetan Tsvetanov has been staging special operations day and night, already the subject of ridicule as they have led to busting of endless mafia rings, and no actual sentences. This has been rigorously blamed on the "corrupt" judiciary, and it is yet to be seen how the special anti-mafia tribunal to be set up shortly will play out.

The Borisov government has carried out some much advertised reforms with respect to the absorption of EU funds, which are supposed to save Bulgaria from the loss of billions of euros. The positive effects, if any, of those, however, will not be felt until the very end of the Cabinet's term in 2013.

Of course, the Borisov government has won much international praise – but so had the governments of Kostov (1997-2001), Saxe-Coburg (2001-2005), and Stanishev (2005-2009). And that does very little for those actually residing in the country.

The point here is that the next two years will certainly be rather rough; but if the government remains stable and its policies – at least relatively prudent (including in publicly sensitive spheres: health, education, pension reform), with the improvement of the international economic environment, the Bulgarians should have the chance to claw their way out of the crisis, and become more hopeful for the post 2013 period.

Much of that depends on what kind of "restroom" Bulgarian politics will end up more like being – the not unpleasant, scented place in your home that you rarely have to think of, or the dirty public toilet at a Bulgarian train station where you (should) really dread going.


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SMILES

MONEY SAFETY IN THE BULGARIAN ARMY

The commander of a Bulgarian regiment talks to its treasurer:

"Where do you keep the money of the regiment?"

"In a solid box, sir!"

"Is it relaible?"

"Absolutely! No key can ever unlock it!"

"How do you open it then?!"

"With a staple!"

 

 


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NEWSPAPER ERROR

Yesterday we mistakenly reported that a talk was given by a bottle-scared hero. We apologize for the error. We obviously meant that the talk was given by a battle-scarred hero.


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WORLD

MIDEAST PEACE TALKS RESUME IN WASHINGTON

Direct talks between Israelis and Palestinians kicked off again Thursday with pledges of support from leaders on both sides - as well as the United States - for a peace process leading to a comprehensive settlement within one year.

One day after meeting with President Barack Obama at the White House, Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmoud Abbas struck a guardedly optimistic tone while sitting down with Secretary of State Hillary Clinton at the State Department.

Clinton, who sat at the middle of a u-shaped table flanked by Netanyahu, Abbas and other senior negotiators, told reporters that the meeting was part of a move "towards a future of peace and dignity that only (Israelis and Palestinians) can create."

The United States "cannot and will not impose a solution," she declared, though she asserted that a two-state solution is the only viable resolution to the conflict.

The US government will be an "active" partner in the renewed peace process, Clinton promised. It's in America's national security interest to find a solution to the conflict, she said.

Clinton, whose husband tried but failed to reach a comprehensive deal in the final year of his administration, said that "we've been here before and know how difficult the road ahead" can be. Opponents of a deal will try "to sabotage this process," she warned.

For his part, Netanyahu said that he sees in Abbas "a partner for peace."

The Israeli leader said that reaching a lasting peace will require "mutual and painful concessions from both sides." But Israel is prepared to go "a long way in a short time" to reach a deal, he said.

Abbas voiced his belief that the current negotiations "should, within a year, lead to an arrangement" for peace. Palestinian negotiators are prepared to "work on all the final status issues," he said.

Abbas used the occasion to, among other things, call on Israel to lift its blockade of Gaza.


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OFFSHORE OIL RIG EXPLODES IN GULF OF MEXICO

An explosion has torn through an offshore oil platform in the Gulf of Mexico, west of the site of the blast in April that caused a huge oil spill.

The blast, which threw 13 people into the water, was reported by a commercial helicopter company about 0930 local time (1330 GMT).

The platform, reportedly still on fire, was not producing oil or gas, the Department of Homeland Security said.

All 13 people have been accounted for, said Petty Officer Bill Colclough of the Coast Guard. All are headed to a hospital in Terrebonne Parish, he said.

Colclough told CNN that authorities are trying to determine the cause of the blast, and that the platform apparently is still on fire. Asked whether a leak has resulted from the explosion, he said the structure "was not actively producing any product."

"We do not know if there are any additional concerns of pollution," Colclough said.

He said Coast Guard helicopters and cutters are en route to the scene.

The blast occurred around 130km (80 miles) south of Vermilion Bay along the central Louisiana coast.

All 13 workers who fell into the Gulf are accounted for, the Coastguard said. One person is reportedly injured.

The platform is owned by Mariner Energy and is located in approximately 2,500ft (762m) of water, the Coast Guard said.

The latest explosion comes more than four months after an blast ripped through a Deepwater Horizon rig run by BP, causing about hundreds of million gallons of oil to be released into the Gulf of Mexico.


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3 US GOVERNORS DECLARE STATE OF EMERGENCY FOR HURRICANE EARL

The governors of the American states North Carolina, Virginia and Maryland have announced state of emergency because of the approaching hurricane Earl.

On Thursday, the hurricane is expected to reach the Ocracoke and Hatteras Islands, which are part of North Caroline. Forecasts from the US National Hurricane Center have said they expected Earl to turn north and then run parallel to the East Coast, the BBC reported.

According to the Bulgarian Telegraph Agency, the states New York and Massachusetts have also announced emergency situations.

After being temporarily downgraded to a category three on Wednesday, the hurricane Earl strengthened to a category four again later in the day, the BBC reports.

At the moment, the epicenter of the hurricane is about 1,080 km southeast from the Hatteras Island and is moving north with 28 km/h, generating sustained winds of 215 km/h.

The hurricane Earl is the first major hurricane to endanger such a large area of the US East Coast since the hurricane Bob in 1991.


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