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Archived Articles
Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.
He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.
In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.
Global Real Estate Project
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Bulgarian government signals for right turn
Earlier this year the government had announced that it planned to ask Bulgarian parliament to remove the constitutional ban on selling agricultural land to foreigners. Such move would require approval in three consecutive votes by three quarters of the 240-seat unicameral chamber. The actual government majority represents only a little more than a half of the parliament. The hard-liner left opposition, which holds almost 60 seats, so far hasn't decided whether or not it will support such constitutional amendment. By the way it is one of the main preconditions for Bulgaria to become an European Union (EU) member. As a matter of fact so far there isn't a single Eastern European country which has allowed foreign nationals to buy agricultural land. In a separate move the Bulgarian government decided to ask parliament to lower significantly most business related taxes in order to accelerate economic transition and increase its own popularity among the businessmen. Most of the polls suggested that if the parliament election were held today, the ruling right-wing coalition would certainly lose its absolute majority. The most noticeable sign that Bulgarian government is feeling this threat is the readiness by which it has moved to ease the restrictions on the foreign real estate property rights. Unlike other Central European countries like Hungary which fear unrestricted influx of foreign investments on the real estate market Bulgaria faces very different problems. In Hungary the point is how to avoid the fast increase of the real estate property prices which is due to the massive influx of the foreign capitals expecting that the country will become an EU member state within 3-4 years. In Bulgaria, which will have to wait 7-8 years to enter into EU, the real problem isn't how to regulate but how to attract enough foreign investments. The real estate prices, which are among the lowest in the Eastern Europe, have collapsed even more in the last couple of months. Many businesses closed doors and left the condos which were used as offices. Bulgarian real estate experts estimate that in Sofia in May and June the prices for residential purposes went down 5 percent on average. On one hand, this economic downturn increases unemployment. On the other hand, it reduces the state budget income. In the spring of 2001 Bulgarians will have to choose their next parliament and in the autumn of 2001 - their next president. With higher jobless rate in the country the ruling coalition will most likely lose its grip on power. With emptier treasury coffers (less businesses - less taxes), the government faces the Hamlet's question To be or not to be? which in our case has a little bit different meaning - To rule or not to rule? . Lowering taxes will achieve positive results no earlier than next year but the majority wants results now. That's why it decided to ease the real estate market restriction regarding the foreign nationals. By attempting to attract more foreign investors, the ruling right-wing coalition expects to mobilize its traditional voters. Many of them represent the so called restitution capital * - tens of thousand of landlords in the cities and many more thousands in the villages who gain on their living primarily by letting their houses, condos or land to businesses and foreigners. The stagnation on the real estate market resulted in withdrawal of the part of these political supporters from the ruling majority and the new influx of the foreign capital has to reverse this negative for the government trend. ---------------- * - In 1992 and 1993 the first completely non-communist government in Bulgaria for decades decided to return to their former owners (or heirs) the arable land and the town properties which were confiscated without proper compensation by communists during their almost a half-century rule. This process became known as restitution, its beneficiaries were called restitutes and since then they have been representing one of the the main social forces which stood behind the right-wing parties in Bulgaria. It is expected that the process of restitution of the arable land will be fully accomplished by the end of 2000.
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See also the directory of companies providing real estate services in, and general real estate information of Bulgaria.
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