THE strong ties between Bulgaria and Italy were fully demonstrated during the recent visit to Bulgaria by Italian president Carlo Azeglio Ciampi and the business forum held during his visit.
As the Stability Pact co-ordinator for Bulgaria Milen Keremidchiev put it, “Bulgaria is among the most developed countries in South-Eastern Europe, with the greatest share of foreign investments and the best functioning market economy”. It was these factors that had stimulated Italian investor interest, he said.
Representatives of 120 Italian companies took part in the forum, evidence of their appreciation of the opportunity to partner with Bulgarian entrepreneurs.
“The union between Italian and Bulgarian banks is remarkable,” Maurizio Sella of the Italian Bankers Association (ABI) told the forum, reflecting a sentiment that applies to other sectors of the economy.
“We have not come to Bulgaria just to show a presence. Bulgaria is a wonderful gateway and the Italians present in your market want to use that open gateway,” Sella said.
Giovanni Sacchi, Director of the Sofia office of the Italian Foreign Trade Institute – ICE (one of the organisers of the forum) gave a briefing on opportunities for investment in sectors of the Bulgarian economy, such as industry as a whole, power engineering and the environment, construction, tourism, information technology and the food processing industry.
“With its gateway location, Bulgaria is in a good position to act as a supplier of goods to the EU,” said Professor Beniamino Quintieri, president of the ICE.
Quintieri said that Italian business leaders were seeking to expand their co-operation with Bulgaria, which they regard not only as a very attractive market for their products, but also as a potentially expanding production base.
“Bulgaria is extremely attractive to Italy with its strong orientation towards a market economy and its general institutional landscape, which is very encouraging,” Quintieri said.
He listed Bulgaria’s advantages as including its workforce, the energy sector, and the tax system. Its geographical location was important too, given that long distances usually discourage Italian small- and medium-sized enterprises.
Italian industrialists were seeking to outsource to Bulgaria in order to expand their production while minimising costs, Quintieri said. He said that there were vast opportunities for Italian semi-finished products to be end-processed in Bulgaria, a typical example of economic globalisation.
The chief operating officer of UniCredit-owned Bulbank, Alessandro Decio, praised the development of the Bulgarian economy and predicted that in 2007 economic growth in this country would be 5.3 per cent and unemployment will drop to 10.5 per cent. Being the largest bank in Bulgaria in terms of assets in recent years, Bulbank has constantly been monitoring the development of Bulgaria.
Italian business people showed interest in Varna Shipyard and in making investments in power engineering, infrastructure projects and the aviation sector. They praised the Bulgarian Government’s economic policy and the programme for the development of small- and medium-sized enterprises.
Bosco Scuro, president of the Italian Association of Tourist Agents, said that Bulgaria had the potential to develop rural, eco, and ski tourism for Italian visitors. Bulgaria was an attractive travel destination but not very well known in Italy, he said. To encourage more Italians to visit this country, travel services offered by low-budget air carriers should expand, which was a precondition for the development of spa tourism in particular.
In 2004, Bulgaria was visited by 30 000 Italian tourists, up 20 per cent from 2003. The flow of Bulgarian tourists to Italy in 2004 was 140 000. This is something that has to be worked on, and the ambitious plans of businesses from both countries show that it is achievable. Bilateral co-operation in tourism can also be supported by EU funds or by the governments of the EU member states.
Trade between Italy and Bulgaria is expected to top $3 billion (about 2.5 billion euro) in 2006. There is a favourable trend in the progress of bilateral economic relations, experts say. Trade between the two countries increased by more than 20 per cent in 2004 compared to 2003.
The number of Italian companies conducting business in Bulgaria already exceeds 800. Last year’s Italian investments to Bulgaria equalled about $70 million (60 million euro), which made Italy the third largest investor in this country, according to Invest Bulgaria Agency data.
Today, Italy is also among the strongest advocates of Bulgaria’s accession to the EU. This was highlighted in mid-May during a visit to Sofia by the Italian culture minister, Rocco Buttiglione.
After meeting Buttiglione, European Affairs Minister Meglena Kuneva said Bulgaria could use Italian expertise in the preservation of archaeological artefacts, which involves the method of preventive archaeology (exploration of a site and subsequent intervention when the site’s development may alter or destroy valuable artefacts). Italy could also help Bulgaria align its culture administration to modern European standards.
Buttiglione said that cultural assets are not a commodity but a national heritage of a country, and should be preserved as best as possible and offered as tourist attractions. Buttiglione, who is also former Italian minister for European affairs, said Bulgaria was advancing well on its path to EU membership and the target date of accession, January 1, 2007, was the right date. Bulgaria had proven itself a reliable partner, he said.
He praised Kuneva’s approach of highlighting the common Christian cultural origin as a unifying element in the European family, and her vigorous defence of Bulgaria’s interests within Europe.