BULGARIA: NEW BULGARIAN GOVERNMENT

UNCLAS SECTION 01 OF 02 SOFIA 000407

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV BU
SUBJECT: BULGARIA: NEW BULGARIAN GOVERNMENT


1. (SBU) SUMMARY: PM-designate Boyko Borissov formally submitted
his cabinet to President Parvanov on July 23, parliamentary approval
expected on July 27. The cabinet of 16 (vice 18 in the former
government),including two deputy PMs (vice 4) is a nearly even mix
of GERB party members and Western-oriented technocrats from outside
the party. The technocrats are not all experienced in government
but they are well-qualified and without the taint of corruption.
One significant surprise is Traycho Traykov, a little-known lawyer
for an Austrian power company, for the critical Economy and Energy
ministry.


2. (SBU) The cabinet choices signal a change in direction and
seriousness about reform; they will likely receive wide public
support. Key ministries of Interior, Defense and Foreign Affairs
have gone to close embassy contacts. The choice of technocrats is
not surprising, as the young GERB party has few of its own experts.
The cabinet reflects the change Bulgarians voted for on July 5.
Expectations will be high. The new government will need to take
quick steps to address effects of the economic crisis and show it is
really fighting corruption if it wants to reestablish faith in
Bulgarian institutions among the people and with the EU. It will
look to us for guidance and be very receptive to us for advice. END
SUMMARY.

CONSOLIDATION
--------------


3. (SBU) Reducing and consolidating government as promised in the
campaign, Borissov abolished the State Administration and Emergency
Situations ministries; the positions of Deputy PM for EU Funds
Management and Minister for European Affairs; moved tourism and
forestry to the Economy and Energy ministry; moved youth and science
to Education; and shifted the Agency for Information Technology to
the Ministry of Transport. There is one new ministry, Physical
Education and Sports. Borissov did not separate Economy and Energy
into separate ministries as expected. Speculation is that it will
happen in a few months once the new government is settled in.

BIOS
--------------


4. (SBU) Brief bios of key ministers follow below:

TSVETAN TSVETANOV, DEPUTY PM, MINISTER OF INTERIOR AFFAIRS:
Tsvetanov (44) was Borissov's right hand during his time at the MOI.
When Borissov started GERB, he made Tsvetanov party chairman as
Bulgarian law bans mayors from serving as party leaders. Loyal,
hard-working, non-controversial and void of charisma, Tsvetanov was
the ideal figurehead to chair GERB without posing any threat to its
real leader. He is faced with a major overhaul challenge at the MOI
but is respected by the police and has Borissov's strong backing.
Tsvetanov is very open to the embassy and advice from U.S. experts.
He visited the U.S. in June 2008 as a participant in a State
Department-sponsored single country program on party-building and
U.S. foreign policy.

SIMEON DYANKOV, DEPUTY PM, MINISTER OF FINANCE: Dyankov (39) worked
at the World Bank Headquarters in Washington from 1995 to 2009. He
is ranked among the 150 most cited economists in the world according
to IDEAS/RePEc (Research Papers in Economics). Though Dyankov's
skills are impressive, he is a newcomer to Bulgaria (he left to
study in the U.S. in 1991) and to Bulgarian politics (he joined the
GERB economy team earlier this year). To his advantage, he is a new
face without baggage from past, but he will be working in a very
different environment from the World Bank. As a minister he is
facing tough challenges; especially (possible) talks with IMF for an
agreement and improving the use of EU funds, all while trying to
satisfy high public expectations.

NIKOLAY MLADENOV, MINISTER OF DEFENSE: Mladenov (37) entered
politics at a young age, working at the Open Society Foundation and
the World Bank. In 1999 he founded the European Institute in Sofia
and served as its first director, playing an important role in
Bulgaria's accession to NATO and the European Union. His public
statements continue to show strong support for Bulgaria's
integration into EU and NATO. In 2001, he was elected MP for the
Union of Democratic Forces (UDF) and rose to Deputy Chairperson but
quit in 2005 after party infighting. In 2007 he entered the
European Parliament as a GERB delegate, where he worked on defense
issues. Mladenov has not served in the military or Defense ministry
and would have preferred the Foreign Ministry post, but Borissov
said there was "no one else I can trust" with Defense.

RUMIANA ZHELEVA, FOREIGN MINISTER: Zheleva (40),a respected
sociologist and lecturer at Bulgarian universities and abroad, was
elected GERB MEP in 2007. During her first mandate in the EP she
was a member of the Committee on Regional Development and the
Delegation for relations with the Maastricht countries. In June
2009 she won a second mandate and became one of the European
People's Party's ten vice chairpersons. Zheleva is intelligent and
makes a good impression, but her foreign policy experience is
limited.

SOFIA 00000407 002 OF 002



TRAYCHO TRAYKOV, MINISTER OF ENERGY, ECONOMY AND TOURISM: Called
"the yuppie" by his colleagues, Traykov was unknown to Bulgarian
politics before Borissov's surprise choice. Traikov has had no
previous public exposure and colleagues describe him as very
intelligent but "a silent, not a leader type." There is speculation
his nomination was supported by the so-called Plovdiv lobby of
oligarchs close to Parvanov. There are rumors of a personal link to
proposed Finance Minister Dyankov. Since 2006 Traikov has worked as
a legal advisor for Austrian power company EVN.

MARGARITA POPOVA, JUSTICE: A long time partner in DOJ programs,
Margarita Popova is a career magistrate with over 20 years
experience in the Prosecution Service. She enjoys a good reputation
among her colleagues who describe her as an open, energetic,
disciplined and gutsy person. If approved by Parliament, Popova will
be the third woman Justice Minister.

ROSSEN PLEVNALIEV - REGIONAL DEVELOPMENT: Intelligent and
soft-spoken, Plevneliev has a respected name in the construction
business. His entry into politics is attributed to ties with media
tycoon and industrialist Ivo Prokopiev, who is close to Borissov.
Plevneliev will face a tough challenge to win back the EU's
confidence after last year's corruption scandals. Plevneliev is
also on the Board of Directors of AmCham Bulgaria and will receive a
warm welcome from U.S. investors.

MIROSLAV NAIDENOV - AGRICULTURE: Naidenov spent most of his
professional life in veterinary medicine. He is Chair of the Expert
Committee on Agriculture and Forestry in the GERB party. In 2008,
Naidenov attended a training program for political leaders at the
State Department.

TOTYU MLADENOV, MINISTER OF LABOR AND SOCIAL AFFAIRS: GERB mayor of
Vratsa, won an upset victory in a BSP stronghold. Spent most of
career on trade union issues, including as representative of
Podkrepa trade union and director of the Chief Labor Inspectorate.

BOZHIDAR DIMITROV, MINISTER WITHOUT PORTFOLIO/DIASPORA AFFAIRS:
Prominent nationalist historian Dimitrov quit the BSP to run for
GERB in Burgas and defeated the Ataka favorite. Slated for a
parliament deputy chairmanship, revelation of past work with
communist-era security disqualified him. Borissov is believed to
have given him minister-without-portfolio as compensation.


5. (SBU) A list of the other ministers follow below. We will send
additional biographic information on them septel.

Alexander Zvetkov - Transport (GERB, Sofia Deputy Mayor in charge of
transport)

Nona Karadjova - Environment

Totyo Mladenov - Social Affairs (GERB)

Dr. Bojidar Nanev - Public Health

Svilen Neikov - Physical Education and Sports

Yordanka Fandakova - Education (GERB)

Vezdi Rashidov - Culture (GERB)