EditBulgarian businesses issue self-defence guide amid fears of state overreach
Entrepreneurs brace for abusive inspections and legal ambiguity ahead of eurozone accession
As Bulgaria prepares to adopt the euro from 1 January 2026, growing unease about state interference has prompted two of the country’s leading economic organisations to issue a legal survival manual for companies. The handbook, released jointly by the Bulgarian Entrepreneurial Association (BESCO) and the Institute for Market Economics (IME), offers practical advice to businesses on how to respond if state authorities initiate raids, inspections or asset seizures.
“We clearly have a problem,” says Dobromir Ivanov, CEO of BESCO, summing up what he describes as mounting anxiety among entrepreneurs, quoted by EUalive’s partner Dnevnik.
The move follows a string of high-profile arrests, legal uncertainty surrounding euro adoption, and persistent concerns over politically motivated investigations and institutional overreach. Concerns are also linked to the recently adopted amendments to the Law on the Introduction of the euro, which introduce a one-year period of state-imposed price controls and allow inspections by the Consumer Protection Commission, the National Revenue Agency, and the Commission on Protection of Competition.
The publication, shared across social media and among business networks, serves both as an educational tool and a warning. It urges public authorities to refrain from using pressure tactics and warns companies of the legal risks associated with ambiguous regulations.
One of the core problems, according to the guide, lies in overlapping institutional competences. Three separate authorities – the Commission for Counteracting Corruption (CPC), the Commission for Forfeiture of Unlawfully Acquired Assets (CONFISC), and the Prosecutor’s Office – can launch parallel procedures based on anonymous tips, media reports, or discrepancies in asset declarations.
The CPC is authorised to conduct raids and seize equipment under Bulgaria’s Criminal Procedure Code, often without prior judicial approval. CONFISC, operating under civil law, can demand evidence of the legal origin of a company’s assets even when no criminal conviction exists. Prosecutors may bring criminal charges independently, while also coordinating with other agencies.
The result, according to BESCO and IME, is a system vulnerable to arbitrary enforcement. “If there are no clear standards, then anything can be interpreted as a violation,” Ivanov warns, pointing to recent cases where business owners faced legal action based on vague accusations of “price manipulation.”
Rights, risks and red flags
The handbook outlines practical measures companies should take if subject to investigation. Among them: insisting on full access to case files, retaining legal counsel, preparing written responses to inquiries, and preserving records of all transactions and income for at least a decade.
It also highlights scenarios many entrepreneurs have already encountered – unannounced visits by officials, seizure of documents and hardware, and asset freezes initiated without judicial rulings. The authors warn that even informal meetings with government representatives can later be used as grounds for scrutiny.
This heightened caution comes amid broader questions about rule of law in Bulgaria, as the country inches closer to eurozone membership. The business sector fears that legal unpredictability may hinder investment and deepen distrust between institutions and the private sector.
“The unpredictability of state actions is corrosive,” says Ivanov, drawing parallels with the so-called “Eight Dwarfs” scandal – a widely publicised case in which an anti-corruption NGO alleged that public institutions had facilitated hostile takeovers of private companies. While the case captured public attention, authorities failed to deliver any meaningful accountability. In recent years, Bulgaria has repeatedly seen corruption scandals involving corporate raiding and interference by the executive branch, which have remained uninvestigated by the authorities.
Although the new business guide is primarily intended for a domestic audience, it also sends a message to Brussels. Legal uncertainty and selective enforcement remain a source of concern across several EU enlargement and cohesion countries, and Bulgaria’s case could test the EU’s tolerance for backsliding on governance.
As the eurozone accession approaches, Bulgarian entrepreneurs are calling not just for clearer laws, but for a shift in political culture. Until then, they are preparing for the worst.
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Caption: The Parliament in Sofia, Bulgaria, 11 July 2025. EPA/VASSIL DONEV
Updated: August 2, 2025 - 05:13
