VZCZCXRO6101
OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSF #0862/01 1991445
ZNR UUUUU ZZH
O 181445Z JUL 07
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3994
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHTRO/AMEMBASSY TRIPOLI

UNCLAS SECTION 01 OF 02 SOFIA 000862 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EUR/NCE MNORDBERG 
 
E.O. 12958: N/A 
TAGS: PGOV EFIN ECON KIPR KJUS BU
SUBJECT: BULGARIAN PARLIAMENT APPROVES CABINET RESHUFFLE; REASSURING 
FACES TAKE OVER ENERGY-ECONOMY AND JUSTICE 
 
Ref: (A) SOFIA 582, (B) SOFIA 678 
 
SOFIA 00000862  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY: Bulgaria's Parliament approved July 18 two new 
ministers as part of the first reshuffle of the Socialist-led 
three-party coalition government which assumed office nearly two 
years ago.  Petar Dimitrov, a  Socialist MP who chaired Parliament's 
budget committee, was confirmed as the new Minister of Economy and 
Energy, replacing fellow party member Roumen Ovcharov, who was 
forced to resign in June amid a high-profile corruption scandal 
(reftel).  Miglena Tacheva, an experienced judge who served as 
Deputy Justice Minister under the previous government, takes over 
the Justice Ministry, traditionally under the purview of Simeon 
Saxe-Coburg's centrist party.  Dimitrov and Tacheva, both good 
contacts of the Embassy, enjoy a favorable reputation, and their 
appointment is seen as an improvement.  At the same time, Parliament 
also removed the lucrative forestry portfolio - a major source of 
graft - from the Ministry of Agriculture, controlled by the Movement 
of Rights and Freedom.  The split aims to curb the influence of the 
Socialists' junior coalition partner.  END SUMMARY 
 
¶2. (SBU) The Parliament, where the ruling center-left coalition 
enjoys a stable majority, easily passed the changes proposed by 
Prime Minister Sergei Stanishev.  With 157 votes in favor and 57 
against, the MPs approved Stanishev's nominations for Petar Dimitrov 
as new Minister of Economy and Energy and Miglena Tacheva as 
Minister of Justice.  Former Economy and Energy Minister Roumen 
Ovcharov, one of the most influential figures in the government, was 
forced to resign last month after becoming the center of a major 
graft scandal that rocked Bulgaria's establishment and contributed 
to the Socialists' poor showing in the May elections for European 
Parliament(Refs A and B).  Former Justice Minister Georgi Petkanov 
resigned in May, quoting poor health and fatigue.  With 152 votes in 
favor and 57 against, the MPs also backed the PM's proposal for 
removing the forestry portfolio from the Ministry of Agriculture, 
controlled bythe ethnic Turkish Movement for Rights and Freedom 
(MRF).  The Parliament created a new Agency for orestry, which will 
be under the Prime Minister' authority.  The personal and 
structural changesvoted July 18 are the first since Stanishev's 
goernment took office in August 2005. Below is biogrphical 
information about the two new ministers. 
¶3. (SBU) Petar Dimitrov, 58, is a senior member o the ruling 
Bulgarian Socialist Party (BSP) who ntil now was the chair of the 
Parliament's Budge and Finance Committee.  A reliable economist, 
Dmitrov often has been referred to as "the economic otor" of BSP 
and is one of the authors of the ruing party's economic program. 
He has been a voca proponent of the "no-left-turn" economic policyof the Socialist party, arguing tha the BSP-led government should 
remain committed to fiscal discipline despite pressure by the 
party's hard-line wing.  As  chair of the Budget and Finance 
Committee, Dimitrov has backed tight fiscal policies and favored 
further fiscal reforms that would stimulate business.  His reformist 
ideas have triggered criticism by the BSP's more conservative 
electorate.  Dimitrov chairs the BSP branch in Varna and appears to 
be one of a few prominent "white hats" in this Black Sea city 
largely controlled by the TIM organized crime group.  A fourth-time 
Socialist MP, Dimitrov is an associate professor at the Economic 
University in Varna and its Deputy Dean.  He has been a member of 
the BSP Supreme Council since 1990 and was recently re-elected in 
the party leadership. 
 
¶4. (SBU) Miglena Tacheva, 47, is a career magistrate and former 
Deputy Justice Minister in the government of Simeon 
Saxe-Coburg-Gotha, the leader of the current coalition partner NMS. 
Tacheva is known as an open-minded and energetic person, however her 
determined style, often classified as stubbornness, has brought her 
a number of enemies. During her term as Deputy Justice Minister 
Tacheva was in a deep conflict with the then Minister of Justice 
who, however, was unable to procure her dismissal due to Tacheva's 
strong political backing.  Although Tacheva is not formally 
associated with any of the lobbies within the NMS she enjoys the 
support of the party's leader, who in 2004 appointed her to lead the 
investigation into the sensitive case involving the purchase of 
apartments at below-market prices by high-level government 
officials.  Tacheva has extensive background in the NGO sector and 
immediately following her nomination as Justice Minister pledged to 
strengthen the dialogue between the government and the civil sector 
in the rule of law arena.  She has participated in programs at the 
National Center for Judges in Nevada, at the National Center for 
State Courts in Williamsburg and has been a long-term partner in 
USAID programs. 
 
¶5. (SBU) COMMENT: Both appointments appear to be good news for the 
U.S.  The more significant impact on U.S. interests comes from the 
exit of Ovcharov, a powerful government member with close ties to 
Moscow, who had almost entirely monopolized supervision of energy 
projects.  A respected politician and a good embassy contact, 
Dimitrov is likely to be more open than Ovcharov.  The downside is 
 
SOFIA 00000862  002.2 OF 002 
 
 
his lack of experience in the energy sector, but his capable deputy, 
a good Embassy contact, is poised to bring him up to speed quickly. 
Tacheva also is seen as an improvement upon her predecessor, who was 
dubbed "the non-existent minister" for his aloofness and lack of any 
action in the critical and closely-watched area of Justice Affairs. 
 
 
¶6. (SBU) COMMENT CONTINUED:  From a domestic-policy perspective, the 
new appointments appear to reinforce the Socialist-led government's 
short-term stability.  The government reshuffle, however, falls 
short of public expectations; some of the most unpopular ministers - 
Health, Social Policy, and Environment -- retained their offices. 
We hear from BSP insiders that the PM, who also faces internal 
opposition, was unwilling to make drastic government changes ahead 
of the autumn local elections, during which the Socialists will face 
a strong challenge from the new populist GERB party.  More 
government changes could come after the local elections, expected to 
take place in October.  END COMMENT 
BEYRLE