In foreign policy, the main priorities of the new government are Bulgaria's integration into European structures,
NATO membership and maintaining close economic and political ties with the
Republic of Turkey, the
United States and the
Russian Federation, as well as with the countries of the
European Community. On 21 November 2002, at the Prague Summit of NATO Heads of State and Government, a formal invitation was sent to Bulgaria to join the Alliance. In the spring of 2003, the National Assembly decided on the participation of Bulgarian military units in the multinational forces for the
reconstruction of Iraq. On March 29, 2004, at a ceremony held at the
US Treasury Department, the Republic of Bulgaria and six other Eastern European countries were accepted as full members of NATO. The Treaty was ratified by the National Assembly on 31 March 2004. Negotiations for the country's association with the
European Union were also under way. The Republic of Bulgaria did not belong to the group of "ten" (Czech Republic, Slovenia, Slovakia, Lithuania, Latvia, Estonia, Poland, Hungary, Malta and Cyprus), which
joined the EU on 1 May 2004, but by the spring of 2005, met some of the basic criteria for membership. All thirty negotiation chapters had been closed. An agreement between the representatives of the Republic of Bulgaria and the EU was signed on April 25, 2005 in Luxembourg. It set both the date for accession (January 1, 2007) and the financial assistance of 3.6 billion euros over three years, as well as the reforms that the country is committed to implementing in the coming months. The Luxembourg Treaty was ratified by the National Assembly on 11 May 2005. The government carried out a large number of privatization deals and concession agreements. Some of them (the sale of
BTC, the attempt to conclude a concession agreement for the
Trakia highway, the replacement of Bozhurishte airport, etc.) created tension among Bulgarian society and distrust of the government. The cabinet was accused by the opposition of lowering sales prices, of lack of publicity in carrying out the deals and of failing to comply with the requirements for a competitive start in the sale of state property. Despite the relatively high rates of economic growth, a number of negative trends were observed in the Bulgarian economy. The foreign
trade balance was negative. In 2003, $7 billion worth of products were exported and $9.3 billion were imported. Exports to Russia were symbolic. The external debt of private enterprises (EUR 3.3 billion) and banks (EUR 2.1 billion) was growing. The four-year rule of Simeon Saxe-Coburg-Gotha's government was accompanied by significant changes in the country's political life. In early 2002, the BSP withdrew its support for the cabinet and became the strongest opposition party. Although not in power, the
right failed to emerge from the crisis. Its split led to a sharp decline in its influence in the public life of the country. The largest number of supporters had three right-wing political formations: the
Union of Democratic Forces, the
Union of Free Democrats and
Democrats for a Strong Bulgaria. The number of political parties in Bulgaria reached about 330, which unequivocally spoke of a deep crisis among the political elite. In 2002, the Tsarists registered a new political formation. In 2004, followers of the New Time political movement seceded from it, forming a new party and a separate parliamentary group. Despite the split and the opposition's attempts to provoke early parliamentary elections (six unsuccessful no-confidence votes in the National Assembly), NMSS and MRF successfully served their four-year term in office. In the
2005 elections, Simeon's NDSV party was defeated and became the second-largest in the country. This was a result of popular disappointment in the government's leadership, especially since the expectations were very high, with some even calling them unrealistic. == Cabinet ==