I am walking against the crowd down the high street. Ultra-trendy girls with thick dramatic make-up totter by in their high, pointy-toed boots. People push and chatter; the busy road needs to be negotiated carefully. Levis, Starbucks, United Colors of Benetton and Mango are all familiar names, and the bright arches of McDonald's glow in the distance. This could be any European capital, but as I trip for the third time on the uneven paving slabs of Vitosha high street I am reminded of where I am: Sofia, Bulgaria.
Bulgaria aims to join the European Union in January 2007. In many ways the path to accession is clear, the government having already signed the treaty in April last year. The Bulgarian Lev is pegged to the euro at 1.95 and the country joined Nato in 2004. But with accession will come great changes to the way the country is run, and the ride into Europe may not be as smooth as some predict.
Bulgaria's history is no more turbulent than that of many European countries. Its past has been one of great empires, struggles for power and golden treasures. The Thracian tribes settled in Serdica (Sofia) in the 7th century – incredible golden finds from this time can be seen at the National History Museum. One of the finest items is a 700g pure gold death mask from the 5th century. Then came the Romans who prized Serdica for its location on the main trade route between Belgrade and Constantinople.
The rise of the Ottomans in the 14th century expelled the Romans, and Bulgaria spent the next 500 years under Turkish rule. In 1878, it was the turn of the Russians, and a close relationship still exists today.
Since Bulgaria broke from the USSR and became an independent republic in 1991, it has performed a difficult balancing act. Economic crisis peaked in 1996-1997 with the fall of the second socialist government, and inflation reached over 243 per cent in February 1997. Factories that were booming during the Soviet years closed, leaving tower block after tower block of Sofians out of work. The right wing party stayed in power until 2001. By then unemployment was over 19 per cent.
The result of this instability and lack of government control was crime and corruption, with frequent mafia-style public shootings. In fact, back in 1997 when the EU commissioners first visited Bulgaria, their report was bleak, concluding that Bulgaria, "... would not be able to cope with the competitive pressure and market forces within the Union in the medium term". Bulgaria was also advised to sort out its crime, judiciary system and corruption.
But these concerns have not put off foreign investors. The Bulgarian economy is growing by 5-6 per cent each year and at the last count (in 2003) inflation was 2.3 per cent with unemployment at 13 per cent. The relationship with the UK is strong (being 11th on the list of Bulgaria's top foreign direct investors). In the first six months of 2005, the UK was the third leading investor, and trade between the two countries increased by 27 per cent. UK exports to Bulgaria rose from 153 million in 2003, to 155 million in 2004. More strikingly, in 2004, Bulgarian exports to the UK were 150 million, up considerably from 2003 (126 million).
Kevin Starling, chief executive of Sofiyska Voda, Sofia's water company which serves 1.5 million of Bulgaria's 7.7 million population, says: "There are certain challenges a new business will face when setting up here. Politics are interesting here, but if you know what you want to achieve then you can do it."
Starling has worked for the company since 2003. By this time, the EU commissioners had found that things had changed: "Bulgaria is a functioning market economy. It should be able to cope with the competition pressure and market forces within the Union in the near term provided it continues implementing its reform programme to remove remaining difficulties." These difficulties still being crime, corruption and judiciary reform.
Unfortunately these problems have continued, with over 120 killings in the past three years. In October 2005, one of the city's top financiers, Emil Kyulev – head of DZI-Rosexim and the country's second richest man – was shot dead while driving to work in Sofia. The day before, the EU's latest report had concluded that Bulgaria was on a clear course for accession, but again emphasised that there must be a dramatic cutdown on crime.
Bulgarian prime minister Sergei Stanishev said of the shooting: "This was a very serious development which could undermine the credibility of state institutions and the accession process."
A spokesperson for EU enlargement commissioner Olli Rehn said: "The murder of Mr Kyulev is one of a number of contract killings in Bulgaria this year. By adopting a new Penal Procedural Code aimed at making the pre-trial phase, including the investigation, more efficient, Bulgaria has shown its willingness to address this issue. However, it remains to be seen whether the country has the political determination to translate this into effective measures on the ground."
Yet the economy has not suffered, and in some ways Bulgaria is already piggy-backing on the success of the 10 new members of the EU. The world is keen to see the ex-Soviet states. And that Bulgaria is now a functioning market economy should come as no surprise. You could argue that the EU report inevitably focuses on problem areas and what needs to change, rather than highlighting the country's achievements.
When you're standing beneath the dome of Alexander Nevsky Cathedral in the centre of Sofia, with the stirring choir engulfing the huge space above you, it's hard to imagine that violence and corruption could occur here. Walking around Sofia reveals delicate Venetian architecture and grand parliamentary buildings, surrounded by the Vitosha mountains. In the evening, pop-folk night clubs are all the rage with the young, and many restaurants have traditional Bulgarian folk dancing. The smiling red faces and nimble feet are a memorable sight.
Starling is keen to point out another of Bulgaria's talents: "Some things are better here than in the UK. The IT systems and skills in this country are some of the best in the world."
This has been partly influenced by expats in Bulgaria, but Starling believes this will change, and that joining the EU will bring a lot of Bulgarians back from the US as more opportunities open up in their home country.
"Some people here are seeing the EU as a great opportunity," adds Starling. "Some companies have gone ahead with the private operators but others are waiting as they want to make sure they get the EU funding when Bulgaria joins."
As well as positive changes in the business community there will be social changes. Ian Stewart, director of the British Council in Bulgaria, which runs educational projects and helps to develop new skills for the inevitable changes in the upcoming accession, says: "We've been running a couple of projects over the past couple of years to excite the voter with MPs from the UK. With the 10 countries' accession to the EU, Bulgaria could disappear off the radar so this has proved very effective – there's gradual awareness in the UK parliament about what is going on here."
One of the projects focuses on the problem of people-trafficking, using a series of plays. Another is a more skills-based workshop to retrain Bulgarians who will lose their jobs as a result of EU regulations. Nuclear power is one example. While it seems that it may be making a comeback in the UK, EU regulations mean that Bulgaria will have to shut down Kozluduy power station in the north of the country, resulting in job losses. The British Council retrains people in these situations to help them find employment elsewhere.
So with investors and tourists not deterred, it would seem the road lies clear for success in Bulgaria. Except that the roads themselves are far from clear. With millions of visitors pouring in each year, the infrastructure needs a major transformation – especially with recent tourism figures suggesting the world is well aware of the offerings of the Balkan peninsula. Bulgaria borders Macedonia, Greece, Turkey, Serbia and Montenegro and Romania. Between January and August 2005, Bulgaria was visited by 420,000 Greeks, 390,000 Macedonians and 285,000 Britons (the UK is the third largest source of visitors).
But it still takes six hours to drive from Sofia to the Black Sea coast, the area most popular with British visitors. The country has three mountain ranges, rich in history and folk tradition, which are also attracting attention from the ski industry. Bulgaria is rapidly becoming a top second-home destination too. Two years ago, you could buy a traditional cottage in good condition for under £5,000. Property growth, however, has led to inflated prices and poorer offerings on the market in more recent times and foreigners can't buy land unless they have a business in Bulgaria. This will change once the country becomes part of the growing Eurogang.
International access is a pressing problem. The Danube has only one international crossing point. Sofia International Airport is undergoing expansion to increase capacity from 1.8 million visitors annually to 2.6 million visitors, to meet demand from increasing visitor numbers. In 2004, passengers arriving in Sofia from the UK numbered 87,303, rising to 93,267 in the first 10 months of 2005 (figures only available for January to October. Source: Alexander Gyurov, aviation marketing analyst, Sofia Airport EAD).
Last year, Lufthansa carried 13,854 passengers between the UK and Sofia – an increase of 25.2 per cent on 2004 figures. Dieter Grotepass, Lufthansa's general manager for UK and Ireland, says: "To help meet the increasing demand for travel to Bulgaria, Lufthansa increased flight frequencies to Sofia from the start of the winter timetable 2005/2006 to 41 a week." This included a six times weekly service from Dusseldorf, 14 weekly flights from Frankfurt and 21 flights from Munich.
Yet driving around the capital is a slow process, and at major junctions there are tall lookout-style towers by the road. Most of them are empty but in rush hour I noticed a man sitting inside, leaning over the car chaos. It seemed it was his job to control the flow of traffic by changing the lights when he felt it necessary. From where I was sitting, it looked as if he didn't feel it necessary to change my light at all.
I also noted a complete absence of bicycles. Whether this is because of a rare genetic fault in Bulgarian legs I don't know, but I saw not one bike or motorbike in a city that is completely clogged with cars.
Yet Bulgaria's EU dream is making clear headway. A diplomatic source told me: "Bulgaria's image and reputation has a lot of catching up to do, but in the last two or three years it has had a more positive reputation."
This is emphasised by prime minister Sergei Stanishev: "Bulgaria has to do its work to fulfil its commitments to the EU, not only because that is what our EU partners expect from us, but also because we should be well prepared if we want to become a full EU member state."
The final EU commission report will be delivered on May 17: Bulgaria may only have a little longer to wait.
For further information visit novinite.com, sofiaecho.com, britishcouncil.org/bulgaria, discover-bulgaria.com.
HOTEL CHECK
Grand Hotel Sofia
What's it like? From the outside, an austere grey stone building. Liveried doormen carried my luggage into reception, which has a black and cream marble floor and black leather sofas. The hotel has thick green and red carpets throughout, and dark wood panelling in the corridors.
Where is it? In the centre of Sofia, off one of the main shopping streets (Vitosha) and 10km from Sofia International Airport.
Room facilities The 122 rooms (including 13 suites and two grand suites) are large at over 40sqm. Though a new hotel, room decor is old-fashioned, with a deep green carpet patterned with yellow diamonds, pale lime walls, and two green and gold covered sofas. Bathrooms have a green marble sink and separate bath and power shower. When I needed an adaptor for my phone, the hotel reception had a full drawer to choose from. All rooms have air conditioning, minibar, safe and high-speed internet access (and a strawberry flavoured condom in the bedside drawer).
Restaurants and bars Shades of Red serves international cuisine (11am-12am). Triaditza Restaurant, where breakfast is served, is sometimes used as a breakout room for functions. There is a good buffet selection (open 6.30-10.30am; 11am at weekends) and a chef on hand to make omelettes and scrambled eggs. Dream Notes Piano Bar downstairs is popular with local film stars and singers and can get quite busy. There is also the terraced Grand Café, for summer months.
Business and meeting facilities The convention centre has four meeting rooms holding up to 150 people. There is also a well-equipped business centre.
Leisure facilities A large fitness room, with a sauna, steam bath, solarium, massage and spa bath.
Verdict A comfortable, central hotel.
Price Best internet rate for a midweek April stay was €180 for a deluxe queen room.
Contact Grand Hotel Sofia, 1 Gurko Street, 1000 Sofia, tel +359 2811 0811, grandhotelsofia.bg.
