BULGARIA/EU: FINAL NAIL IN COFFIN OF OUTGOING

C O N F I D E N T I A L SOFIA 000405

SIPDIS

EUR/CE

E.O. 12958: DECL: 07/23/2019
TAGS: PREL PGOV BU
SUBJECT: BULGARIA/EU: FINAL NAIL IN COFFIN OF OUTGOING
GOVERNMENT

REF: SOFIA 0325

Classified By: Amb. Nancy McEldowney for reasons 1.4 (b) and (d).


1. (C) SUMMARY: The European Commission released its annual
Cooperation and Verification Mechanism (CVM) report on
Bulgaria's progress in Justice and Home Affairs on July 22,
the same day Parliament accepted the resignation of the
government of PM Stanishev. As expected, the report blasts
the out-going government for lack of political will to fight
high-level corruption and organized crime. Although the
report did not invoke the safeguard clause and noted marginal
progress on some rule of law issues, the drafters declared
the monitoring mechanism will continue indefinitely -- a sign
Brussels considers progress a long way off. While highly
critical, the report did not carry the sting of its
predecessors as it was directed at a government no longer in
power. The recommendations will serve as a road-map for the
new GERB government to win back Europe's trust. END SUMMARY.

LACK OF POLITICAL WILL
--------------


2. (SBU) The 2009 EC report assessed Bulgaria's progress in
meeting six benchmarks in the areas of judicial reform, the
fight against organized crime and combating high-level
corruption. The Commission said that "Bulgaria showed the
first technical results in the fight against corruption and
organized crime, but their effect is limited." The CVM
states there is still no clear proof that Bulgarian
authorities are "unequivocally committed" to solving the
country's rule of law challenges. The conviction of
Burgas-based drug lord Dimiter Zhelyazkov (aka Mitko the
Eyes) and two Varna businessmen Vesselin and Hristo Danov on
money-laundering, pimping, and criminal association charges
were cited as successes. Nevertheless, the EC stressed that
prison terms continue to be minimal and defendants are able
to strike plea-bargains for shorter sentences. It adds that
the "first" successes must be judged against the daily
reality in Bulgaria where contract killings continue and
well-known criminals are still released from prison or
receive lenient sentences. The report stated that Bulgaria
still suffers from an outdated Criminal Code and excessive
formalism in judicial practice. The drafters note that "true
judicial reform has yet to begin."


A ROADMAP FOR THE NEW GOVERNMENT
--------------


3. (C) With this report Brussels removed the threat of
application of the safeguard clause against Bulgaria, but
stunned many by stating that Bulgaria would be subject to the
monitoring mechanism indefinitely. The report offers 21
recommendations for reform including the creation of an
independent specialized anti-corruption and organized crime
court with political independence, the banning of cash
payments in real estate deals, strict control over conflict
of interest, and fast and effective convictions of corrupt
high-level government officials, among others. Tsvetan
Tsvetanov, incoming Deputy Prime Minister and Interior
Minister told us he and his colleagues consider the
recommendations a "roadmap" for their reform efforts.


4. (C) COMMENT: This report, although harsh, did not carry
the sting of previous monitoring reports, coming on the same
day the outgoing government officially tendered its
resignation. PM Stanishev and his government are putting a
brave face on Brussels's assessment, highlighting the few
bits of praise offered. For the new government, the CMV
report offers a baseline to show the EU (and its own public)
that it has the political will to make the necessary reforms
-- to curb high-level corruption, take down the crime bosses,
and end the misuse and abuse of EU funds. Brussels's next
report -- on the management of EU funds -- will be released
in fall 2009. END COMMENT.

McEldowney