History

In the 7th century the Bulgars established the first Bulgarian empire, which expanded to cover most of the Balkans. Christianity became the official religion in the 9th century. In the late 14th century Bulgaria fell to the Turks and lost its independence for five hundred years.

Bulgaria sought independence after Russo-Turkish War (1877-78), but this was in part revised by the Berlin Congress, and it finally became formally independent in 1908. Bulgaria allied with Serbia, Greece and Montenegro in the Balkan League and in 1912 began a war against the Ottoman Empire to liberate Macedonia. Disagreements in the aftermath of this led to the  2nd Balkan War, which Bulgaria lost against Serbia and Greece, ceding territory to both and to Turkey in consequence.

In 1915, Bulgaria sided with the Central Powers in the First World War, and with Germany in the Second World War. It fell into the sphere of influence of the Soviet Union and in 1946 a people's republic was declared. The communist leader resigned in 1989 following political unrest and a process of democratisation began. In March 2004 Bulgaria joined NATO.

State and society

Under the constitution of 1991, Bulgaria is a republic with a National Assembly. The president and the head of  government are elected directly. The elections of 2001 were won by the newly-founded National Movement Simeon II (NDSV), led by the former monarch Simeon II, who had returned from Spanish exile. The prime goal of the government was to improve the standard of living by increasing wages and reducing taxes.

The majority of the population are ethnic Bulgarian (85%), followed by Turkish (10%), Gypsy (3.4%) and others (1.6%). There are no severe ethnic conflicts, although the Gypsy population are not really integrated in society.

Many people declare no active religious affiliation, but the largest religious group is still the Bulgarian Orthodox church; more than 10% are Muslims.

Although there has been a steady economic improvement over the past decade, this positive development has by no means reached all strata of society. Many people in Bulgaria do not have sufficient income to secure the minimum standard of living – every sixth Bulgarian lives below the poverty limit. Rising prices for electricity, water and district heating have led to falling real incomes for the unemployed, old people, and others dependent on social support. Although the government adopted counter measures, about 1 million people were increasingly disconnected from the economic upswing at the beginning of the 21st century. The situation is particularly difficult for the Gypsies, many of whom live in poverty, with 80% unemployed. 

Various non-governmental organisations have expressed grave concerns about the conditions in care homes, particularly those for the mental handicapped.

Economy

Over the past eight years the Bulgarian economy has undergone a surprising transformation. Whereas the country found itself in a severe economic and banking crisis in 1996 due to high foreign debts, a range of effective measures have since been adopted, including structural reforms and the privatisation of almost all state-owned enterprises. As a result, inflation could be reduced to 3.8% (2002), with a growth rate of 5.3% (2004). In the same economic year, Bulgaria generated a trading surplus and was able to repay some external debts. However, the situation on the labour market was less positive, with a 12,7% (2004) rate of unemployment.

The positive economic development did not provide benefits for all the population. Sinking real incomes led to a worsening of the position of social groups who were already living near the existence minimum, in particular the elderly, the unemployed and the sick.