Twelve months ago, after seven years of
preparation, Bulgaria and Romania became
full members of the EU and 30 million new
citizens saw their horizons expand.
'This enlargement has consolidated peace and
brought more prosperity to Europe. This is the
right decision for Bulgaria and for Romania, and
this is the right decision for Europe,' declared
Commission president José Manuel Barroso when
the welcome signs were still drying.
Nevertheless, despite far-reaching reforms,
which lasted until they joined, the EU openly
acknowledged that Bulgaria and Romania still
had a long way to go in tackling organised crime
and corruption, adapting their legal systems and
guaranteeing food safety.
To ensure this work continued beyond
accession, the Commission put forward a package
of transitional measures to prevent or remedy any
persistent shortcomings and ensure the smooth
integration of both countries. The overarching
message was that EU membership is not an end
in itself for the two countries – joining the EU is
only one stage in a process of integration based
on European values.
BULGARIA
Before the run-up to joining the EU
in 2007, Bulgaria had only one golf
course in the entire country. Now
that the country has enjoyed its first full
year of membership of the club it had
desperately wanted to join for so long, 10
are under construction, some with luxury
villa complexes bolted on, bankrolled by
foreign investment.
At first glance, Bulgaria looks like it
deserves a bit of relaxation on the links.
In its first year as an EU member, the
country's economic growth is expected
to reach 6.4% – at the top end of several
years of 6%-plus growth, according to
a Sofia-based think tank, the Centre for
Economic Development. That is well over
the expected EU average rate of economic
growth which the OECD predicts will
reach 2.7%.
Moreover, Bulgaria ranked among
the 10 countries worldwide which have
made the largest advances in reforming
their economies, according to a recent
World Bank-IFC Study, Doing Business
in 2008. The survey points out a major
shift: Eastern Europe has now replaced
East Asia as the most convenient place
to do business. And businesses appear to
be queuing up at the border. Starbucks
is recruiting in Bulgaria. Carrefour is
building Bulgaria's largest mall, which
will have 200 stores. Ikea is mulling
entering the market.
Indeed, Bulgaria has been a magnet
for foreign cash. According to a recent
survey by the Columbia Programme
on International Investment and the
Economist Intelligent Unit, Bulgaria has
become attractive to foreign investors
as a low-cost entry point to the EU.
The Center for Economic Development
predicts 2007 will be a banner year for
foreign investment, at €5bn. Particularly
strong is Chinese and Taiwanese
investment in electronics factories as a
convenient way of dodging import duties.
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