BULGARIA: Bulgaria's Socialists began forming a long-awaited government yesterday, but allies of former king Simeon Saxe-Coburg threatened to scupper plans for a broad coalition uniting the EU candidate country's three biggest parties.
President Georgy Parvanov gave the Socialists a week to create a new cabinet, almost a month after they won a general election but failed to gain an overall majority, forcing them to negotiate with the NMS party of Mr Saxe-Coburg, the defeated premier.
Socialist leader Sergey Stanishev claimed to have clinched a framework deal with the NMS, whereby Mr Saxe-Coburg would hand him the premiership, and Bulgaria would escape the political deadlock that is threatening its bid to join the EU in 2007.
"The Left is ready to finish the process. We have even drafted a coalition treaty," Mr Stanishev said yesterday, after announcing earlier that agreement had been reached "on policy, on the prime minister and on the structure of the government." Analysts welcomed news of the nascent coalition - which would unite the Socialists, the NMS and the main ethnic-Turkish Movement for Rights and Freedom - as a historic moment for traditionally fractious Bulgarian politics.
But strife among Mr Saxe-Coburg's supporters could yet derail a deal that would calm fears in Brussels that Bulgaria is falling way behind on crucial reforms.
"In a situation in which Stanishev is prime minister, the position of our political council is clear - NMS has no place in such a government," said the party's deputy, Atanas Shterev.
The NMS issued a terse statement saying it was ready to continue coalition talks, but appears set to drive a very hard bargain over the division of key ministries among the partners in the unlikely alliance.
Most commentators say the coalition, which would hold 169 of parliament's 240 seats, could push through vital changes to Bulgaria's slow and corrupt legal system, bring more competition and transparency to business, and overhaul other inefficient institutions.
"This is very positive. . . it's 99 per cent sure there will be a deal," said Gallup analyst Kancho Stoichev. "Such a coalition would be a new era in Bulgarian politics. It would be stable, rational and exactly what people voted for."
The Socialists' election victory last month toppled Mr Saxe-Coburg's government which, despite slashing debt and balancing the budget, disappointed voters by failing to fulfil a promise to crush corruption and eradicate poverty in a country where the average wage is only €150 a month.
Brussels has warned Bulgaria and fellow EU aspirant Romania that their accession could be postponed for a year from 2007 if they fail to implement reforms.
Both nations fear that growing opposition to expansion in countries like France and Holland could hamper their bids for membership, and poll results released yesterday suggested that only half of EU citizens back Bulgaria's accession, and even fewer support Romania's bid.