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And the monarch is the *populist* candidate?

Bulgarian "Stability" Warning as Former King Tipped
for Poll Win

SOFIA, Jun 8, 2001 -- (Agence France Presse) Bulgarian
President Petar Stoyanov warned voters not to believe
"pretty promises" Thursday, in the latest blast by
Sofia's ruling elite aimed at ex-king Simeon II who is
tipped to win elections this month.

And he forecast that the impoverished country, which
has made huge strides towards Western integration over
the last four years, faces a real threat of
instability depending on the outcome of the June 17
ballots.

Soaring in the polls with pledges to cut poverty and
clamp down on corruption, the fledgling Simeon II
National Movement (MNS II) is threatening to oust
Prime Minister Ivan Kostov's ruling coalition in the
poll.

On Thursday, Stoyanov joined the fray warning about
the country's future.

"When political illusions of today turn out to be
without foundation tomorrow, we will all have to pay
dearly for their collapse," he said in an address to
the nation.

While not mentioning Simeon II by name, he added: "On
the eve of elections for a new parliament, the
political situation is heavy with uncertainty."

Kostov's ruling United Democratic Forces (UDF)
coalition, which took office in 1997, has been
embraced by the West for its willingness to push
through painful economic reforms deemed necessary to
transform the ex-communist country into a fully
functioning market economy.

But the closure of so-called non-viable industries and
a wave of privatizations have left nearly 20 percent
without work, and others below the poverty line as the
cost of living rises.

Simeon, who has spent most of his life in exile after
fleeing the communists in the 1940s, found his
ambitions to re-enter the political arena welcomed by
many of the country's disenchanted poor when he
returned to the country earlier this year.

This week he has attempted to broaden his support,
bidding for the backing of public sector workers with
promises of an increase in wages and pensions for
teachers and police.

He also pledged interest-free loans for small
entrepreneurs wanting to set up businesses, and said
he would free companies from paying tax on profits as
long as these were reinvested in the company.

His economic advisor Milen Veltchev said the extra
money for these schemes would come from EU funds given
to Bulgaria to prepare it for entry into the western
club, the World Bank and the European Bank for
Reconstruction and Development.

He added that the coalition's pledge to crack down on
corruption would also be a money spinner, particularly
at customs where officials are thought to turn a
frequent blind eye to imports demanding duties in
exchange for a bribe.

The UDF moved quickly to condemn the proposals.

Kostov branded them "populist" and "empty".

Deputy Prime Minister and Economy Minister Petar Jotev
declared the MNS II objectives would spark off
inflation. "They cannot be realized," he said.

Meanwhile Finance Minister Mouravei Radev singled out
plans to aid small businesses with interest free loans
as "dangerous", because of the risk the money might
never be paid back.

And waving much coveted EU entry at the Bulgarian
people, the government's negotiator for membership
Vladimir Kissiov warned that these "vague messages
risk pushing Bulgaria's date of entry into the EU far
into the future".

Kostov's UDF, while still trailing behind the
ex-king's coalition, has in fact picked up in the
opinion polls from a miserable position just two
months ago.

The most recent survey carried out by the ALPHA
Research polling institute give MNS II some 38 percent
of voting intentions, against 25 percent for the UDF.

At the end of April, when the ex-king's coalition was
formed, MNS II were running at 53 percent in the
polls, and the UDF at 18 percent. ((c) 2001 Agence
France Presse) 




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