Macroeconomic stability in Bulgaria has been maintained thanks to implementation of sound fiscal and incomes policies under the currency board arrangement. Despite an adverse external environment, the authorities have persevered with their ambitious reform agenda. Priority should now be given to completing privatization and accelerating restructuring of the enterprise and banking sectors.

Frequent changes in the legal framework and problems with the implementation of legislation discourage private sector initiative and investment. In order to increase Bulgaria's attractiveness to domestic and foreign investors, there is a need to persevere with institutional and legal reforms to improve law and contract enforcement, reduce red tape and fight corruption. The reform effort needs to be sustained by completing privatisation, enforcing financial discipline in the enterprise sector (e.g. accounting standards, tax collection, etc.) and strengthening market economy supervisory bodies. In addition, the issue of corporate governance in newly privatised enterprises needs to be addressed. Further steps are needed to ensure a stable and transparent legal framework for business.

Building on the achievements of CGI in 1999 the main objective of the activities in 2000 is to develop policy measures and adopt a relevant policy agenda for corporate governance development on a broader regional level in CEE transition context. Through country assessments, policy formulation, and wide dissemination and advocacy the Initiative will:

• Assist the elaboration and the implementation of set of practical and policy instruments that would ensure accountability, transparency and sound business practice in transition economies;
• Promote public awareness of best corporate governance standards and their practical importance for the economic growth and social progress of a country and international trade and investment development.
• Set up a framework for policy dialogue between private and public sector institutions aiming at introducing modern corporate governance structures and procedures in Central and Eastern Europe.

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