Bulgaria to Vote After Corruption Scandals

The people of Bulgaria elect a new parliament Sunday that will have to tackle an economic crisis and widespread corruption, which has cost the Balkan country millions of dollars in crucial European Union aid. Opinion polls suggest a defeat for the ruling Socialists, who have been plagued by financial scandals.

Sunday's parliamentary poll in Bulgaria comes after the country lost access to millions in European Union aid for allegedly failing to deal with endemic corruption.

Surveys show that most voters will likely vote against the Socialist-led coalition, which has been plagued by financial scandals, including money laundering, dubious expenditures, and fraud.

The agriculture and environment ministries, both controlled by an ethnic Turkish party, and the construction and economic ministries, led by the Socialists, have been accused of some of the most notorious schemes in the past few years.

In 2008, watchdog Transparency International rated Bulgaria the most corrupt EU nation. Brussels has criticized Sofia for not doing enough to stem corruption.

But Bulgarian authorities say they take organized crime seriously. Last week seventeen Bulgarians were detained on charges of distributing more than 16 million euros worth of fake banknotes across Europe.

Despite widespread corruption, Prime Minister Sergei Stanishev says he should be re-elected. He says the Socialists and partner parties in other countries are the best equipped to tackle the global economic downturn, which has impacted Bulgaria, the EU's poorest member state. "We are actually paying now the price for greed which was overwhelming, and for a lack of regulations and a lack of transparency, the number of financial institutions and their actions. We have to calm down and stabilize the situation and guarantee the stability of the financial system. The second stage is to prepare much better regulations which will guarantee the citizens, the taxpayers and the people that their saving are all right and that they will not suffer," he said.

But opinion polls predict voters will back the center-right opposition party GERB headed by Sofia Mayor Boiko Borisov to lead them out of the financial crisis. He has campaigned on promises to jail corrupt officials and organized crime bosses.

Borisov's center-right GERB looks set to receive about 30 percent of the ballots, versus 20 percent for the Socialists. But that's not enough to form a government on its own. A party or coalition would need 121 of parliament's 240 seats to form a government.

Besides corruption, the new prime minister will also have to address Bulgaria's recession after 12 years of growth.

Economists have warned that the Balkan nation of nearly eight million people must act quickly to slash public spending, otherwise it will be forced to seek massive aid from the International Monetary Fund as other former Communist states, including Romania Latvia and Hungary.