PARLIAMENT APPROVES BULGARIA'S NEW GOVERNMENT

UNCLAS SECTION 01 OF 03 SOFIA 001450

SIPDIS


SENSITIVE

E.O. 12958: N/A
TAGS: PGOV BU
SUBJECT: PARLIAMENT APPROVES BULGARIA'S NEW GOVERNMENT

Ref: A) SOFIA 1448 B) SOFIA 1329 C) SOFIA 1429 D) SOFIA 1404
E) SOFIA 1380 F) SOFIA 1363 G) SOFIA 1325


1. (U) Action request Para 7


2. (SBU) SUMMARY: At an extraordinary session of parliament on August 16, the largest coalition in Bulgaria's post-communist history approved the nomination of Socialist leader Sergei Stanishev as prime minister. Stanishev was backed by MPs from a three-party coalition of the Bulgarian Socialist Party (BSP),the National Movement for Simeon II (NMSS) and the Movement for Rights and Freedom (MRF). Following the PM vote, parliament approved with two separate ballots the structure of the new government and the cabinet line-up. Post will use the arrival of Ambassador Beyrle and CODEL Hagel to quickly engage the new government on a number of key bilateral issues. Post also requests Washington congratulatory calls to the new government. The relatively dispassionate debate on the new governments was marred by extreme-right Ataka leader Volen Siderov who used violently anti-Turkish rhetoric to criticize the role played by President Purvanov in the formation of the government. Bios of new governments follow comment. END SUMMARY

BULGARIA'S NEW GOVERNMENT; A DONE DEAL


3. PM Stanishev was elected with 169 votes in the 240-seat Parliament (only 235 MPs were present),giving him the largest majority of any post-communist government. The center-right United Democratic Forces (UDF),Democrats for Strong Bulgaria (DSP) and Bulgaria People's Union (BPU),joined by Ataka, all opposed the Stanishev government.


4. (U) Speaking before Parliament, Stanishev outlined the government's highest priorities including European Union entry on January 1, 2007, a goal of annual economic growth of 6-8 percent and a modernized state administration in support of the free market. The government also pledged to take decisive action against organized crime and corruption. The new government's decision-making process will be based on the principle of consensus and dialogue, said Stanishev. President Georgi Purvanov praised the new cabinet saying the inclusion of a large number of experts is an important guarantee for its success.

LACK-LUSTER DEBATES


5. (U) After 52 days of political wrangling, three mandates and an
obviously done deal, the five-hour Parliamentary debate was
relatively subdued. Criticizing the proposed government, Nadezhda
Mihailova of UDF said the horse-trading involved in the formation
of the new government surpassed her wildest expectations.
Mihailova also cautioned that UDF will challenge the new government
in the Constitutional Court arguing that the Bulgarian constitution
does not allow Stanishev to form a government after previously
being named PM (Ref B.). MPs from DSP labeled the new cabinet a
Socialist government, which does not reflect voters' expectations.
Although they voted against the proposed government, BPU MPs
acknowledged that Bulgaria avoided a lengthy period of political
chaos (i.e. a caretaker government and new elections) thanks to the
coalition agreement.


6. (U) "Ataka", living down to its reputation, characterized
President Purvanov's decision to give the third mandate to the
primarily Turkish MRF as treason. Siderov and followers wore black
arm bands in "mourning Bulgarian national dignity" and charged the
new government will pursue "anti-Bulgarian" policies. As his
insults of the President and the government continued, the
Parliamentary leader finally expelled Siderov from the rostrum.


7. (SBU) Action Request: Post believes congratulatory calls from
President Bush to PM Stanishev and Secretary Rice to Foreign
Minister Kalfin would be very effective in helping to quickly
establish strong working relations with the government.


8. (SBU) COMMENT: While the government-formation was painful to
observe, the end result is a broad coalition with strong
Parliamentary support. How it will function, however, is still an
open question. Legislation required for EU entry -- including
essential reform of the Penal Procedure Code -- will be the
government's highest priority and should engender cooperation.
Individual issues, including participation in Iraq, privatizations
and fiscal policy will be more problematic. With a new government
finally in place, Post will quickly engage on a number of issues
that have languished since mid June. The arrival of Ambassador
Beyrle and the August 28 visit by CODEL Hagel provide an excellent
opportunity to raise Bulgaria's participation in Iraq, basing
negotiations, the business climate, protection of intellectual
property and the weak rule of law environment. We will also be
urging the government to forcefully address an increase in anti-
minority rhetoric that has coincided with Ataka's electoral
success. END COMMENT

THE CABINET LINE-UP


9. (SBU) Bulgaria's new cabinet comprises eight ministers from the
BSP, five ministers from the NMSS, three from the MRF and one
minister who is not a party member, but his nomination was
supported both by the BSP and the NMSS.

--SERGEI STANISHEV, (BSP),Prime Minister: Stanishev, 39, is a
Moscow-educated historian, whose only non-political experience was
as a freelance journalist. He entered the political scene in 1995
as chief expert at the Foreign Policy and International Affairs
Department of BSP. Stanishev was elected chairman of the BSP
Supreme Council on December 15, 2001, after Purvanov's election as
president. Stanishev is the fourth leader since the Bulgarian
Communist Party reinvented itself as the BSP. He is affable and
media-friendly, and enjoys a largely positive public image,
although his lack of experience is often raised as a weakness. As
leader of the BSP parliamentary group in the previous parliament,
he was a strong supporter of membership in the EU and NATO. He
speaks English and Russian very well.

--IVAILO KALFIN, (BSP),Deputy Prime Minister and Foreign Minister:
Kalfin, 41, was President Purvanov's economic advisor. Since
becoming Presidential Economic Advisor Kalfin has actively
participated in reforming the left-wing parties' economic thinking
and policies pushing for market economic reforms. He is a Western-
educated economist and financial consultant, and is fluent in
English, Russian, French and Spanish.

--ROUMEN OVCHAROV, (BSP),Minister of the Economy and Energy: As Deputy Chairman, Ovcharov, 53, is among the most influential figures within the BSP. He is a Russian-trained nuclear engineer who served as Energy Minister in the failed Socialist government of Zhan Videnov in 1996-1997. He speaks English very well.

--ROUMEN PETKOV, (BSP),Interior Minister: Petkov, 52, is the other
influential Socialist deputy leader, responsible for BSP
organizational matters and party funding. His four-year term as
mayor of Pleven (1995-1999) was marred by allegations of
corruption. He is a pragmatist who maintains good relations with
other parties, particularly the MRF. He has been very open with
the Embassy during the formation process. Petkov does not speak
English.

--PLAMEN ORESHARSKI, (Independent),Finance Minister: Oresharski, 45, is an economist and financier who currently serves as Vice Dean of Sofia's Economic University. He served as deputy Finance Minister in Ivan Kostov's cabinet (1997-2001). Oresharski quit the Union of Democratic Forces (UDF) in 2003 following a controversy regarding his nomination as mayor of Sofia. The UDF withdrew Oresharski's candidacy for Sofia's mayor after his meeting with a controversial businessman linked to organized crime became public. He has limited working English.

--VESSELIN BLIZNAKOV, (NMSS),Defense Minister: Bliznakov, 61, is
an influential figure within NMSS and loyal to the former king. He
is a member of the NMSS' Political Council and Secretary General of
NMSS. He was also an MP in the previous Parliament and chaired the
Parliamentary Energy Committee. As an expert in radio-biology and
radiation, Bliznakov has strongly opposed the early closure of the
four units of Kozloduy Nuclear Power Plant - required by the EU.
Until July 2001 Bliznakov chaired the Bulgarian Nuclear Society.
He speaks English and Russian.

--GEORGI PETKANOV, (NMSS),Minister of Justice: Petkanov, 57,
served as Interior Minister in Simeon's administration. He became
a member of the NMSS Political Council on April 6, 2002. He was a
lecturer at the Faculty of Law at Sofia University. He does not
speak English.

--NIKOLAI VASSILEV, (NMSS) Minister of State Administration:
Vassilev, 35, served as Deputy Prime Minister and Minister of
Transport and Communications in Simeon's administration. Before
the cabinet reshuffle in 2003 he was Minister of Economy. He
speaks excellent English.

--MEGLENA KUNEVA, (NMSS),Minister of European Integration: Kuneva,
48, is an expert on European affairs. MP in the 40th National
Assembly (Parliamentary Group NMSS). Kuneva served as Minister of
European Affairs in Simeon's administration. She speaks excellent
English.

--DANIEL VULCHEV, (NMSS),Deputy Prime Minister and Education
Minister: Vulchev, 43, was an MP in the previous Parliament where
he chaired the Committee for European Integration. He is a member
of the Political Council of the NMSS and Deputy Chairman of NMSS.
He speaks very good English.

--EMEL ETEM, (MRF),Deputy Prime Minister and Minister of Disaster
and Accidents: Etem 47, was a member of the 38th and the 39th
National Assembly (Parliamentary Group of the MRF). Etem has been
Deputy Chair of the MRF Central Council since February 2000. He
speaks no English.

--EMILIA MASLAROVA, (BSP),Minister of Labor and Social Policy:
Maslarova, 56, was MP in the 7th Grand National Assembly (1990-91),
the 38th National Assembly and in the 39th National Assembly. She
is a member of the BSP Supreme Council. Maslarova was Minister of
Labour and Social Policy in Andrei Loukanov's cabinet (Sept. 1990-
Nov. 1991) and Director of the Foreign Aid Agency (1995-97). Her
ability to speak English is unknown.

--ASEN GAGAOUZOV, (BSP),Minister of Regional Development and
Public Works: Gagauzov, 52, is a member of the BSP Supreme Council.
He was MP in the 38th and 39th National Assembly. Gagauzov was
mayor of Sliven (1999-2001). He speaks no English.

--PETER MOUTAFCHIEV, (BSP),Minister of Transport: Moutafchiev, 44, was MP in the 38th and the 39th National Assembly. He was secretary of the Socialist parliamentary group. His ability to speak English is unknown.

--STEFAN DANAILOV, (BSP),Minister of Culture: Danailov, 63, was
MP in the 39th National Assembly and chaired the Committee on
Culture. He is a member of the Executive Bureau of the BSP Supreme
Council. He is a professional actor. He speaks Italian.

--RADOSLAV GAIDARSKI, (BSP) Minister of Health: Gaidarski, 68, has been working at the government Lozenets Hospital since 2003. He was on the team that performed the first successful liver transplant operation in Bulgaria. On October 19, 2004, Gaidarski was named the Physician of the Year award and on April 6, 2005, he was awarded the title Physician of Bulgaria. His ability to speak English is unknown.

--DJEVDET CHAKUROV, (MRF),Minister of the Environment and Waters: Chakurov, 45, was MP in the 39th National Assembly and chaired the Parliamentary Committee on Environment and Waters. He is a member of the Central Council of the MRF in charge of relations with the European liberal parties. In May 2005, he was elected Vice President of the Liberal international and member of the Executive Bureau of the organization. He speaks English.

--NIHAT KABIL, (MRF),Minister of Agriculture and Forestry: Kabil, 43, is extremely loyal to the MRF Leader Ahmed Dogan. He is credited with setting up a substantial part of the MRF's political structures in the country, and is considered to be the MRF's informal treasurer. Kabil served as Minister of Agriculture in the Simeon Saxe-Coburg-Gotha's administration. He is an agricultural engineer whose career has spanned government and private business. He speaks only a little English.

LEVINE