Joining the EU

Gone are the days from being an ex-Soviet Union Dictatorship State; in fact is a country with vision and also credible ambitions to join the EU, in fact Bulgaria will be a full member of the European Union on the 1st January 2007. This alone will have a huge effect on property prices, for example; since Spain joined the EU property prices have increased an astonishing 284%.

Bulgaria is already a member of NATO, the currency “Lev” or “Leva” is pegged to the Euro, roughly equating to 1 €uro buys 2 BGN (leva).

Bulgaria is a parliamentary republic and top international consultants, Price Waterhouse Coopers, have reported that Bulgaria is politically stable and that it has a stable economy.

Its Grand National Assembly passed a Constitution of the Republic in July 1991 and this Constitution is the supreme law of the country.

The national income (GDP) per person has increased by a massive 24% from 1999 to 2002 and more good news is that (unlike the UK) its government debt is declining. Furthermore $2 billion is expected in direct foreign investment by the end of 2004/early 2005, up from the forecast $1.6 billion.

Some excellent news about Bulgaria is that on its way to becoming a full member of the EU, it has already complied with all 31 EU accession criteria. Essentially, this means that it is also on course to receive $4.5 billion in EU financing for 2007 to 2009. Historically, the expectation as well as the actuality of joining the EU drives economic growth and property prices for the poorer states. The expectation a country is going to join the EU alters investment sentiment, which drives up prices before anything in reality has changed on the ground.