Corruption in Bulgaria: A Persistent Crisis with Severe Consequences for Governance and the Economy – 11.02.2025

According to the 2024 Corruption Perceptions Index, published today by Transparency International, global levels of corruption remain alarmingly high, and efforts to curb it have proven unsuccessful.

In this year’s CPI issue, Bulgaria scored 43 points (second only to Hungary among EU countries), which is below the critical threshold of 50 points and signals serious challenges in the fight against corruption in the country.

Bulgaria: Persistently Low Results and a Lack of Progress

With a score of 43 points, Bulgaria remains among the countries with high levels of corruption in the public sector—a result of years of superficial efforts and legislative changes that have served kleptocratic circles, under the guise of adopting European standards.

The index, which measures levels of political corruption, shows that political corruption is a barrier to good governance and is incompatible with the functioning of democratic institutions and sustainable economic development.

Foreign investment is at an all-time low. Serious businesses—those that invest for the long term and have both the responsibility and the capacity to positively shape the social environment in the regions where they operate—are leaving the country or considering doing so. The reason for this is the hostile environment created by an increasing number of self-serving regulations and administrative arbitrariness, compounded by the destructive effect of legal uncertainty. All of this prevents planning and long-term, sustainable investment.

An environment in which the tax burden and labor cost planning are unpredictable even within the current year—and depend on behind-the-scenes political deals designed to satisfy visible and invisible clientelistic interests—makes the business environment toxic.

In describing the social climate, we cannot overlook the fact that, for the first time in the 36-year history of Bulgaria’s democratic transition, the legitimacy of the elections has been seriously called into question.

Even the political parties represented in parliament are questioning the legitimacy of the elections to such an extent that they are leaving the final decision in the hands of the Constitutional Court, whose ruling is unpredictable.

This situation also casts doubt on the legitimacy of the political leadership, which is tasked with carrying out key reforms and making key appointments.

Civil society is under sustained and increasingly fierce attacks aimed at stigmatizing and silencing the voices that call for transparent and accountable institutions, an independent judiciary, respect for human rights, support for vulnerable groups, and environmental protection. These attacks come, among others, from political forces represented in parliament, which have repeatedly introduced a bill on the registration of foreign agents in the National Assembly.

It is also extremely alarming that indicators that typically show high scores—those related to the level of democracy (The Varieties of Democracy Project)—have declined by 4 points in just one year.

The Institute for Management Development’s annual Competitiveness Yearbook also shows a sharp decline in Bulgaria’s score—7 points in just one year—which confirms the alarming downward trend in key areas such as governance, economic performance, business efficiency, and infrastructure.

Corruption and the Environment

This year’s Transparency International report focuses on the devastating impact of corruption on the climate crisis and reveals the alarming link between high levels of corruption and delays in implementing effective climate policies. The majority of funds earmarked for combating climate change are at risk of misuse, and the lack of transparency in the management of these funds undermines efforts toward environmental sustainability.

The index highlights that billions of dollars earmarked to finance climate-related projects are at risk of misuse and theft.

Green Policies and Investments

Bulgaria is part of a number of European initiatives aimed at addressing climate change and reducing its carbon footprint. Funding for environmental projects comes primarily from the European Union’s Just Transition Fund through the Recovery and Resilience Plan, as well as from national funds. The funds are primarily intended to support the energy transition, reduce dependence on fossil fuels, and promote renewable energy sources; however, their planning, monitoring, and disbursement lack any connection to measures for managing corruption risk. In the absence of adequate regulations and independent monitoring, we risk ending up among the countries where funds are misused and where there is simply “greenwashing.”

Global Trends and Bulgaria’s Place in the World

The Transparency International report shows that more than two-thirds of countries worldwide score below 50, while the global average for the index remains unchanged at 43 points.

Denmark once again tops the rankings with 90 points, while countries such as Somalia (9), Venezuela (10), and Syria (12) remain at the bottom.

Within the context of the European Union, Bulgaria continues to lag behind the average for the European continent, which remains at around 62.33 points.

The country’s greatest challenges remain the fight against impunity, the strengthening of institutions, and the building of public trust in the government.

On a global scale, the Index highlights how corruption undermines global efforts to address the climate crisis. In countries such as Brazil (34) and South Africa (41), corrupt practices threaten large-scale investments in green technologies and sustainable development. Furthermore, corruption in the energy sector remains a serious problem in countries such as Russia (22) and Azerbaijan (22), compromising international efforts to achieve carbon neutrality.

Need for Urgent Action

“We must close the loop on anti-corruption laws that give citizens a voice, such as regulations providing protection against so-called ‘sham’ lawsuits and bringing lobbying practices in government into the open. Without these changes, we cannot expect EU funding or progress toward our membership in the OECD.”

Over the years, the state has allocated considerable funds to the agencies tasked with combating corruption; the legal framework has evolved—albeit under external pressure—particularly in the area of criminal justice; and we are faced with the ever-expanding powers of anti-corruption agencies. The results of these efforts are more than questionable. If we expect progress, we must focus our efforts where the shortcomings are greatest—organizational culture and staff development,” stated Kalin Slavov, Executive Director of Transparency International Bulgaria.

We call on Bulgarian institutions to take concrete steps to strengthen anti-corruption policies, improve accountability for public funds, and effectively enforce anti-corruption legislation.

Read more about Bulgaria results in the 2024 Corruption Perceptions Index.