Positive Signals for Bulgaria

The chancellor will stay in Bulgaria for almost ten hours on a visit which is seen as symbolic of his support for bilateral political relations, economic cooperation and Bulgaria's entry into the EU. It's only a matter of months until the EU summit, at which the date for Bulgaria's accession will be decided.

Last year, the mood between Germany and Bulgaria suffered under Sofia's promise to support US troops in the war against Iraq, a war most Germans openly opposed. But during a visit to Berlin in May Bulgarian Prime Minister Simeon Saxe-Coburg Gotha and Schröder sought to smooth over the rough spots in the diplomatic relationship, stressing that ties between the countries were back on a more even keel. Both German Economics Minister Wolfgang Clement and Finance Minister Hans Eichel have visited Bulgaria since.

New trade partner for Germany?

The Bulgarians place great importance on cooperation with their German partners. Bilateral trade relations were up by 40 percent in 2003, and German companies have ploughed €600 million ($731 million) into Bulgaria in the past 12 months, making them the second largest investors there. Major German companies, including Allianz, Deutsche Bank and Metro, already have a presence on the Bulgarian market. Last month, German energy giant E.On won the tender for the privatization of an electricity company in the former Eastern bloc country. DaimlerChrysler is also lined up to renew the Bulgarian army's fleets, and Schröder will be present in Sofia as the company closes the deal.

And even if Bulgaria's importance as a trade partner for Germany should wane, German holidaymakers are just beginning to discover the beauty and attraction of the country on the Black Sea as a vacation destination. Last year more than 500,000 Germans traveled to Bulgaria, and this year the figure is expected to climb to 700,000.

Corruption and crime

Germany fully backs Bulgaria's intention to become an EU member in 2007; indeed, Schröder has repeatedly voiced his support for the plans. But the decision will ultimately depend on a progress report by the EU's executive, the European Commission, and the outcome of an EU summit planned for this autumn.

During his visit Schröder is also expected to raise issues of corruption and crime with Gotha, both of which could pose hurdles to Bulgaria making it into the EU. The two leaders will also talk about the future place of Turkey and countries from the western Balkans in the EU. On a more international level, observers are expecting Bulgaria to react positively to the German government's push to secure a permanent seat on the United Nations Security Council.