Bulgaria
On January 1st 2007 Bulgaria became a member of the European Union. This was result from a
substantial reform effort, which allowed Bulgaria to make notable progress towards long-term
stability and sustained growth over the past decade. A second generation of reforms has been
launched to help the country’s successful integration in the EU and the global market.
In a recent study of the World Bank Group for 2007, Bulgaria was ranked 46 out of 178
economies on an “Ease of doing business” indicator, up from number 54 in 2006.
Bulgaria has the lowest corporate tax in Europe at 10% and other tax incentives are
being introduced to attract FDI inflow. Starting from 2008 the government agreed to press
ahead with a reduction of taxes on labour by introducing a 10% flat tax on personal incomes.
That move is expected to increase disposable income, spending and saving, along with a reduction
of the grey sector and consequently, to improve the business environment and increase corporate growth.
The combination of high growth, low inflation, stable currency, low interest rates,
price and wage stability, low tax rates, low budget deficit – sets Bulgaria apart from neighbouring
states in Central and South East Europe as a low risk, high return location.
Bulgaria Geography...
Bulgaria Economy...
Bulgaria Property Market...
Romania
Romania became a member of the EU in January 2007 together with Bulgaria. EU membership has been a solid external anchor
for the transformation of the country throughout its recent transition producing 8 years of record economic growth (i.e. annual
GDP growth in excess of 6% per annum since 1999).
EU membership has opened access to generous EU structural and cohesion funds and Romania continues to reform and restructure
its economy and the Government seeks to build institutions and implement public policies to fundamentally transform Romania’s
economy and society. The Romanian Government has implemented macroeconomic and structural policies which are supportive of growth and
disinflation.
A disciplined fiscal policy, complemented by a tight monetary policy and important advances in structural reform have led to
improved financial discipline in the enterprise sector and has placed public finances on much firmer footing. The World Bank
ranked Romania as the top reformer in Europe and the second in the world, during the period 2005-2006.
Progress in reforms has translated into robust GDP growth, averaging 5-6%, for eight consecutive years. In addition,
inflation and interest rates have declined steadily, the fiscal deficit has been brought under control, foreign exchange reserves
increased to historic highs and external debt is now at comfortable levels. The competitiveness of the enterprise sector was
boosted by important productivity gains, compensating for the increase in labour costs. Currently, over 65% of Romania’s trade
is with the EU, a figure comparable with the intra-EU trade. Driven by strong FDI inflows, the share of goods of higher
technological complexity in exports has steadily increased.
Romania is now a visible and attractive destination for international investors as a result of EU membership, better
sovereign ratings and improved access to international capital markets. FDI inflows are estimated at around 8-9% of GDP in 2007.
A recent survey by AT Kearney lists Romania as one of the ten most attractive EU countries for investment.
Romania Geography...
Romania Economy...
Romania Property Market...