site.btaLegislative Amendments Concerning Investor Citizenship Passed on First Reading

Sofia, October 29 (BTA) - Bulgaria's Parliament on Thursday
passed on first reading a Government-proposed bill amending the
Bulgarian Citizenship Act which eliminates the possibility for
permanent resident foreigners in Bulgaria to become naturalized
Bulgarian citizens after they have made investments in this
country.

The legislature also approved on first reading another bill,
moved by MPs of the Movement for Rights and Freedoms (MRF), GERB
 and the United Patriots, which would streamline the conditions
for acquisition of investor citizenship, adding direct
investments and tangible assets of at least 1 million leva
combined with the creation of at least 20 new jobs as a ground
for naturalization.

The National Assembly voted down a bill tabled by Volya,
according to which people of Bulgarian origin resident abroad
would be granted Bulgarian citizenship by a relaxed procedure.

Under the effective version of the law, foreigners are eligible
for Bulgarian citizenship if they invest 1 million leva in a
project prioritized by the country or if they have resided
lawfully in the country for one year and make a 2 million leva
investment, including in government securities.

The debate focussed on criticism by the European Commission
about Bulgaria's investor citizenship scheme and alleged
corruption involved in the procedure. On October 20, the
Commission said it had given Bulgaria one month to reply to its
letter highlighting its concerns regarding its investor
citizenship scheme and requesting further details.

Alexander Ivanov MP of GERB commented that the investor
citizenship possibility should not be scrapped, especially now
that Europe's economy is recovering.

Todor Baychev MP of BSP for Bulgaria argued that investor
citizenship gives rise to problems and should not be encouraged.
 "The EU bluntly showed us that it does not want such kind of
legislation," he commented.

Yordan Tsonev MP of the MRF called for most rigorous conditions
for and control over investor citizenship instead of its
elimination. "We should not give up an internationally
established mechanism but should rather reform it so that
Bulgaria would not lay itself open to criticism," insisted.

Krassimir Bogdanov MP of the United Patriots noted that the best
 solution would be for the Justice Ministry alone to handle
Bulgarian citizenship for people of Bulgarian origin who live
abroad, and an advisory board with the State Agency for
Bulgarians Abroad should deal with applicants who do not meet
the Ministry's conditions. RY/LG