Paul Hunsinger, head of France’s trade and economic mission to Bulgaria, does not dispute the facts: his country’s economic presence has not been the most remarkable in Bulgaria so far. Peugeot has the biggest market share of automobiles, and Danone and Mr. Bricolage are highly visible. But in 2005 French products accounted for only five per cent of Bulgarian imports, making them the sixth largest behind Russia, Germany, Italy, Turkey and Greece. The picture is even bleaker in investments, with France at the 14th position.
France’s tentativeness stems from the Bulgaria’s bureaucracy and faulty judicial system, which make it difficult for small and medium enterprises to invest here. But that, as Hunsinger acknowledges, is valid not only for French enterprises. More specifically, as far as France is concerned, Bulgaria may have suffered from Romania’s attractiveness. The French have traditionally favored Romania, which has the advantage of a bigger market.
Things may be changing. Prime Minister Stanishev’s recent visit to Paris has helped put Bulgaria on the French businessman’s map. While the glitter of Thracian gold was drawing Parisians to the Museum Jacquemart-Andre, the economic forum dedicated to Bulgaria at the Paris Chamber of Commerce was a huge success, with 300 people attending. The information and contacts gathered there should bear fruit in the near future. Hunsinger is confident that French enterprises will plunge deeper into Bulgaria.
One of Bulgaria’s strengths is its high-quality labour force, Hunsinger says. Is January 1 2007 a magic date? Of course it might make things a little easier at customs or at least lessen opportunities for corruption there. More importantly, he adds, it provides the background for a rapprochement in administration and business practices. It also means access to European funds, with French enterprises well-positioned in the fields of transport and environment. And it means Bulgaria will be in a better position to exploit its location at the doorstep of the Turkish market.
The mood has already changed: Eurocopter has sold 18 transport helicopters to Bulgaria, and Carrefour, the giant French retailer, is planning to open its first hypermarket in Sofia. Another French company, Montupet, has started constructing a production plant for automobile parts in Rousse. According to Christine Lagarde, French trade minister, French exports to Bulgaria have risen by 24 per cent in the past six months. Annual trade between the two countries has now reached a billion euro. More unexpectedly, it is balanced, with Bulgarian companies acting as subcontractors to French companies in the textile industry, in particular. In the field of real estate, the British remain somewhat of an exception in the European Union, and French investors have shown little interest for the Bulgarian market so far. But as regards tourism, even though French tourists have not been visiting Bulgaria as much as Germans, British or Scandinavians, their number is rising: it reached 100 000 in 2006, an unprecedented 25 per cent rise from the previous year.
During the Prime Minister’s visit, French President Jacques Chirac also called for rapid progress in the bilateral trade, “particularly in the energy and infrastructure sectors” – a clear reference to the two most important investment projects in Bulgaria: the nuclear power plant in Belene and the second bridge on the Danube in Vidin. Sofia is expected to announce a decision on Belene very soon. France’s AREVA is part of one of the competing consortia — led by the Russian company Atomstroyexport — bidding on the project. Three French companies, including Bouygues and Vinci, were short-listed for the bridge on the Danube project, where a decision is expected in a few months.
It remains to be seen whether smaller enterprises can follow suit and whether the quality of political relations can find an echo in the economic field.
