Key themes in engagements between the two countries, before and since Bulgaria’s January 2007 accession to the European Union, include infrastructure projects, energy stability and transport links.

Among an active series of bilateral meetings at various levels, the October 2007 visit to Sofia by Greek economy and finance minister George Alogoskoufis is an example of how these themes are playing out.

Meeting Alogoskoufis, Prime Minister Sergei Stanishev emphasised that, thanks to their geostrategic location, Greece and Bulgaria play a key role in the implementation of major infrastructure projects linking Europe with other regions.

Stanishev said that the construction of the Bourgas-Alexandroupolis oil pipeline would boost the energy security of both Bulgaria and Greece.

It was agreed at the October 2007 meeting that the Bulgarian and the Greek governments would continue the implementation of joint infrastructure projects, modernisation of the transport network and communications in the border areas and along the route of Pan-European Transport Corridor IV (Sofia-Thessaloniki).

It was also emphasised that a number of projects under the Phare Cross-Border Co-operation Programme would be implemented and that solid foundations had been laid for the invigoration of economic co-operation, including for Bulgarian investments in the Greek economy.

According to a Bulgarian Government media statement, Bulgaria’s EU accession had heightened interest among Bulgarian businesses in investing in Greece and in establishing joint enterprises.

At 586.8 million euro, Bulgaria’s trade with Greece in the first half of 2007 was 28 per cent higher than in the same period the previous year, ranking Greece as Bulgaria’s fifth largest trading partner, after Germany, Italy, Russia and Turkey. Bilateral trade grew 19.7 per cent in 2006.

Towards the end of 2007, the stock of Greek investments in Bulgaria totalled 1705.34 million euro, nearly nine per cent of the total amount of foreign direct investments in Bulgaria.

According to Bulgarian Government statistics, Greek interests invest mainly in telecommunications, banking and industry in Bulgaria.

During his visit, Alogoskoufis met Finance Minister Plamen Oresharski, Economy and Energy Minister Peter Dimitrov, and Regional Development and Public Works Minister Asen Gagaouzov.

The two finance ministers discussed cross-border co-operation, the implementation of Greece’s Balkan Reconstruction Plan, partnership between their ministries at the EU Economic and Financial Affairs Council (ECOFIN), and deepening co-operation between the two customs’ administrations.

After meeting Oresharski, Alogoskoufis cited the agreement between the two sides to reinforce their customs co-operation.

Bulgaria is the only EU country with which Greece has a land border, and therefore Bulgaria-EU customs co-operation is considered very important.

Oresharski said that he had proposed co-operation in the customs sector so that there could be more information on imports and exports, and also aiming at the consolidation of exchange of good practices between the two countries in the customs sector.

Alogoskoufis and Oresharski agreed to establish joint working groups of experts to examine customs issues and submit relevant recommendations to the two ministers, who, in turn, would take final decisions at policy level.

Speaking at a meeting organised by the Hellenic Business Council in Bulgaria (HBCBG), Alogoskoufis said that Greek enterprises had been contributing to Bulgaria’s economic growth over the last 15 years. He emphasised that, in the framework of the co-operation between the two countries, the Bourgas-Alexandroupolis oil pipeline was transforming the region’s energy map.

Oresharski told the meeting that Greek partners had entered Bulgaria during the most difficult times in the 1990s, when others were dubious about the high risk of investment.

He noted that Greece was in fourth place with respect to commercial transactions with Bulgaria.

Opening the event, HBCBG president Christos Katsanos said that Greek business presence in Bulgaria was strong, noting that those Bulgarian banks with Greek stockholders exceeded 25 per cent of the market, while Greek companies ranked third among investors in Bulgaria.

It was also noted during the event that Bulgarian investments had already broken into Greece, then standing at 50 million euro, focusing mainly on the tourism, real estate and IT sectors.

Greece’s ambassador to Bulgaria, Danae-Magdalini Koumounakou, said that strong bilateral relations stemmed from solid and successful Greek business activity in the past 15 years, particularly after the beginning of Bulgaria’s accession talks with the EU in 2000 that led to its full membership on January 1 last year.

She said that the development of Greek business activity in Bulgaria will be determined not only by the course of the Bulgarian economy, “which indeed presents an exceptional performance”, but also by the wise use of the Community Support Framework (CSF) for entrepreneurship in Bulgaria.

During an April 2006 visit to Sofia, Greek prime minister Kostas Karamanlis and Stanishev signed a Declaration of Friendship, Good Neighbourhood and Co-operation between Bulgaria and the Hellenic Republic.

Karamanlis outlined three levels of strengthening of relations between the two countries: at the bilateral, regional and European level.

“When it comes to bilateral contacts, the ties between the countries are excellent; but for the benefit of the prosperity of the two peoples a lot could be done in trade, investment and tourism,” Karamanlis said.