The week: The fall of Dogan

In the 2000s, Dogan began using this power more frequently, culminating in the so-called Treble Coalition - with the Socialists and the Ex-King party, effectively dividing the country into fiefdoms. His name became so synonymous with corruption, that when a new movement rode to power on the wave of popular discontent in 2009, its leader promised to "tear down the palace of Dogan" in Sofia's prestigious neighborhood of Boyana. The movement was GERB, the leader was the fresh Boyko Borissov - then mayor of Sofia.

Bulldozers came in, tv-crews filming, while the new government proudly tore down the barbeque outside Dogan's mansion. That was as far as anyone moved against him. The discord soon died down, GERB turned their attention to other things, and Dogan sent an emissary to negotiate with Borissov. This was a young, but ambitious guy by the name of Delyan Peevski. Peevski joined MRF back in 2005, when only 25, but quickly rose through the ranks. He was driven, brutal and cunning. Dogan saw in himself a worthy heir.

By the time he was sent to GERB, Peevski had already used MRF and Dogan's influence to take over a growing share of the media and the publication houses. He had also brought in much of the justice system and had a growing appetite for procurement, home to the big money. To that end, he was using Corporate Trade Bank money, until he fell out with its owner Tzvetan Vassilev and used the combined power of media and judicial influence to chase him out of the country. Dogan and Borissov must have seen that as a great promise. Others, who fell out with either one or the other, would follow the same fate.

In the following decade, both were confident about using Peevski as a tool to get more money and control bigger pieces of the economy and politics. Dogan retired from official politics and from then on his name was only whispered. He became, once again, the invisible face of an omnipresent force that has taken over the state. So much so, that when a rubber boat landed on the beach near his new palace - on the Black Sea - and a Facebook live feed showed how state security was chasing it away, this provoked a new revolution.

Yet it's a sad irony that it wasn't the rule of law that brought down Dogan in the end. It was the fallout with Peevski and, effectively, Borissov, when the Turkish leader decided his heir had grown far too ambitious and powerful. He tried shutting him down, yet ended up thrown out of his own party; his people were persecuted by the police and the prosecution and in the end - he lost both of his palaces. Shakespeare would have loved this twist.

He then tried to stop him, by helping GERB form a government, only to be played again. The new government is "completely under the control of Peevski", his people claimed yesterday, announcing their decision not to support it. It was too late: he got used as a mask by Borissov and is now being replaced by his nemesis.

One detail from last week is telling: Dogan and his people tried to walk into the Boyana mansion (the same one where the BBQ was destroyed years ago) and Sofia police sent dozens of police officers to stop them. "We got a call saying there was a house break-in", said the chief of the capital police. If God forbid, you have ever alerted the police in Sofia about any crime, you will know that is not how they react to it.

So here we are - that is the state Dogan helped to build. And now it's turning against him. A mea culpa would not suffice.

Politics this week:

Or at least this is what his old pal Boyko Borissov said about him - and about Vladislav Goranov from his own party - on the day of his return from Germany, where he met the CEO of Rheinmetall Armin Papperger and allegedly discussed the creation of a new gunpowder plant with him. "[Peevski] has not been sanctioned for corruption. The time will come for him and for Goranov and the truth will come out. I defend justice, if there is any. If something is done by denunciations - it should be dropped," he told reporters.

Well, actually

Last time we checked, the guy was still prominently figured in the Magnitsky list and on the UK sanctions' list for, erm, corruption. But it doesn't take a genius to see where Borissov is heading: a few hours later it became clear that Antal Rogan, close to Hungarian Prime Minister Viktor Orban, had been removed from the Magnitsky list. Apparently, hopes are high that the same will happen for the Bulgarian duo.

All falls into place

And for that goal, Peevski needs to be firmly in government, in order to hand Trump's administration a reason to pardon him. Borissov is obviously preparing the audience for the imminent rearrangement in the ruling majority now that MRF-Dogan has officially withdrawn from it. Expect a lot more on that front.

But hey, at least we will be in the euro?

That's the consolation the opposition liberal parties are waving around. I have to say, not much of a prize if nothing else changes.

Economy:

Bulgaria is in a very solid starting position to join the euro area, as it meets all the nominal criteria for euro adoption, including adopting legislative changes and inflation and budget deficit requirements. In about two months, Bulgaria should receive the official assessment of the European Commission and the European Central Bank on whether it meets the euro criteria. The country's application must then be voted on by euro area member states, who will take the political decision.

2026 for the win

The Bulgarian authorities hope the country will adopt the euro on 1 January 2026. This was stated by National Bank (BNB) Governor Dimitar Radev, who together with Finance Minister Temenuzhka Petkova participated in a business meeting organized by the American and British Chambers of Commerce in Bulgaria. "We have never been closer to the euro area than now," Petkova said. In his speech Radev touched upon three important topics - the effects of the trade war on the Bulgarian economy, the country's readiness in this global context for the introduction of the euro and the macroeconomic outlook for the country. According to him, eurozone membership has the potential to be a counterpoint to the negative developments in the global economy.

Figures:

After several months of climbing, inflation froze in March at its February level of 4% on an annual basis, data from the national statistics (NSI) show.

-1.7%

The drop in exports for another consecutive month in February, according to NSI. Sales to non-EU countries declined by 4.1% and those to the bloc by just 0.4%.

106

Critically dangerous bridges in Bulgaria are at risk of imminent collapse, claims the Institute for bridges and roads in an analysis. So we sincerely hope that some of them will be closed off before anything like that happens.

Business:

The Serbian specialty coffee chain will grow with Bulgarian resources. The company, which already has more than 50 restaurants in its home country and Montenegro, will expand its presence in the region with a 5 million euro investment from the BlackPeak fund.

Foods

The Bulgarian producer of artisanal hot products has opened its first company store in Bucharest. The investment of about 50,000 euros is made by the Romanian franchise partner of the Sofia-based company.

Energy:

In another reversal of position, Bulgaria is refusing to sell the reactors for the Belene nuclear power plant (NPP) to Ukraine. This was announced by BSP chairman Atanas Zafirov after a party meeting, specifying that he had held talks with GERB leader Boyko Borissov and the two had reached an agreement on the issue. According to Zafirov, selling the reactors would be a grave mistake and would throw years of work and effort to the wind. The news comes after Ukrainian lawmaker Andriy Zhupanin reported that Bulgaria had asked for an extra $100 million for the reactors, but it is much more likely that this was part of the preparations for the deal being scrapped.

Why?

However, the likelihood that the project for a second nuclear power plant will be revived is negligible given the development of technology and the work already advanced on the new units at Kozloduy NPP. On the other hand, the position of Bulgaria, and more precisely of Boyko Borissov, regarding Belene NPP can be taken as a weather vane of Russian influence in the country's governance - when it weakens, Borissov sees Belene as a "bog", and when it strengthens - "a very beautiful project". Obviously, we are now in the latter stage.

Watch out for:

Is visiting Bulgaria on the 27th of April. The American president's son is doing a tour of the region - Romania, Czech Republic, Slovakia, Hungary and Serbia. In Bulgaria, however, he was invited by none other than Nexo - the infamous cryptobank that had a fallout with both American and Bulgarian authorities some years ago. Nowadays everything seems settled. Nexo claims the visit is about "building bridges between the countries and putting Bulgaria on the map".

Natalia Kiselova

The Speaker of Parliament seems to be on the barricades for her party BSP and the government in order to shut down the possible hearing of policemen who stopped a cigarette smuggling ring in Plovdiv. The opposition keeps trying to get them to testify for alleged interference by higher-ranked officials in the Interior MInistry, yet Kiselova and her partners are up in arms against that.

Date

The National Revenue Agency (NRA) will expand its list of goods classified as high fiscal risk to include construction materials, both new and used road vehicles, auto parts and accessories, as well as fertilizers. The transportation of these goods will require prior declaration to the revenue agency, as part of the government's efforts to improve tax compliance and reduce VAT fraud in high-risk sectors.

Location

Where Shell will be prospecting for oil&gas. Shell Exploration and Production signed a contract with Bulgaria for about 4 thousand sq.km or sea exploration area. The bloc is called "Khan Tervel" and is next to the area where OMW is searching for gas and oil. If they find anything, they get to keep 70% of it. It's not going to be anytime soon, however, because that will take years. But it is worth noting that both Romania and Turkey have already found deposits in their areas and are using them.

Zen of the week:

Source: Capital weekly

10 leva

Per hour will be the price if you want to park in the old city of Plovdiv or the surrounding areas. That is if the city council decides on that drastic measure. It will be the highest-paid public parking in Bulgaria and is an indication that something is seriously amiss with Plovdiv's traffic.