Bulgaria is situated in the South-Eastern part of the Balkan Peninsula. The country's population is 7.97 million and has a territory of 110,912 sq.km, bordering Greece and Turkey to the South, Republic of Macedonia and FR Yugoslavia to the West. The River Danube separates it from Romania to the North. Its natural eastern border is the Black Sea. Bulgaria ranks fifteenth in size among the European countries. Its climate is Continental-Mediterranean.

Bulgaria is situated in the center of a region, which is undergoing dynamic transition. Within 500 km of its capital Sofia (1.2 million people) a population of over 60 million is concentrated throughout 10 countries, most of which have only recently embarked on their way to a market economy. This is a large market with one of the most rapidly increasing market demands in Europe. All these regions are only several hours' drive from any point in Bulgaria. A network of international motorways crosses the country, making vital connections to Western Europe, Russia, Minor Asia, to the Adriatic, the Aegean and the Black Sea. Both sea and river transport (the Black Sea and the Danube River) offer good communications and transportation to and from the region

Bulgaria is a parliamentary republic and conforms with the Constitution of the Republic passed by the Grand National Assembly in July 1991. The Constitution of the Republic of Bulgaria is the supreme law of the country and no other law may contravene it. All international treaties, which are ratified pursuant to the constitutional procedure, are considered part of the domestic legislation.

The National Assembly is a one-chamber parliament. It consists of 240 Members of Parliament who are directly elected every four years. The National Assembly is a permanent acting body, directed by a board of Chairmen including a Chairman of the National Assembly.

The head of the state is the President, who embodies the unity of the nation and represents the Republic of Bulgaria in its international relations.

The Council of Ministers is the executive state body and directs the domestic and foreign policy of the country. The government manages the implementation of the state budget, organizes the management of state property and approves or rescinds certain categories of international treaties pointed out in the Constitution.

Under the democratic process, there has been a smooth transfer of power, strengthening of state institutions and a consensus amongst all political parties towards promoting the market economy and respecting human rights.

The territory of the Republic of Bulgaria is divided into 278 municipalities and 28 regions. Municipalities are legal entities and have the right of ownership and independent municipal budgets. Mayors of the municipalities and municipal councils are elected through direct local elections at every 4 years, following the law regulations. The municipal council is the local government authority, which determines the development policy of the municipality. The municipal council consists of the directly elected municipal councilors. The executive power body in the municipality is the mayor of the municipality.

The regions are administrative-territorial units executing the regional policy of the central government. The regional government is performed by regional governors and regional administration staff on municipality budget expenses. The regional governor is a monocracy body of the executive power in the region, performing the state government in the region and providing compliance of national and local interests in executing the regional policy. The regional governor is appointed by the Council of Ministers.