Interwar Bulgaria

Excerpted from Bulgaria-- A Country Study, Glenn E. Curtis, ed. (Washington, D. C.: Federal Research Division of the Library of Congress, 1992)

Stalemate and Demoralization

Once the Bulgarian advance into Romania and Greece halted, conditions at the front deteriorated rapidly and political support for the war eroded. By 1916 poor allocation of supplies created shortages for both civilians and soldiers, and a series of government reorganizations provided no relief. By 1917 the military stalemate and poor living conditions combined with news of revolution in Russia to stir large-scale unrest in Bulgarian society. The agrarians and socialist workers intensified their antiwar campaigns, and soldiers' committees formed in army units. Bolshevik antiwar propaganda was widely distributed in Bulgaria, and Russian and Bulgarian soldiers began fraternizing along the Moldavian front. In December 1917, Dimitur Blagoev, founder and head of the Social Democratic Party, led a meeting of 10,000 in Sofia, demanding an end to the war and overthrow of the Bulgarian government. A wave of unrest and riots, including a "women's revolt" against food and clothing shortages, swept through the country in 1918.

The government position weakened further when the Treaty of Bucharest, which divided the territory of defeated Romania among the central powers, left part of the disputed Romanian territory of Dobruja outside Bulgarian control. Having failed to secure even the least important territory promised by its war policy, the Radoslavov government resigned in June 1918. The new prime minister, Aleksandur Malinov, tried to unite the country by appointing the agrarian Aleksandur Stamboliiski to his cabinet. But Malinov had vowed to fight, and the BANU leader refused the post as long as Bulgaria remained in the war. By September the Bulgarian army was thoroughly demoralized by antiwar propaganda and harsh conditions. A battle with the British and French at Dobro Pole brought total retreat, and in ten days Entente forces entered Bulgaria. On September 29, the Bulgarians signed an armistice and left the war.

The retreat from Dobro Pole brought a soldier revolt that was crushed by German troops near Sofia. But the parties in power forced Ferdinand to abdicate at the end of September because they feared full-scale revolution and blamed the tsar for the country's chaotic state. Ferdinand's son Boris was named tsar, becoming Boris III. The immediate cause of social upheaval ended with the armistice, but shortages and discontent with the Bulgarian government continued. An ineffective coalition government ruled for the next year, then a general election was called. Meanwhile, Bulgaria was again left far short of the territorial goals for which it had declared war. In the Treaty of Neuilly-sur-Seine (November 1919), Thrace was awarded to Greece, depriving Bulgaria of access to the Aegean Sea. The newly formed Kingdom of the Serbs, Croats, and Slovenes took Macedonian territory adjoining its eastern border, and Southern Dobruja went to Romania (see fig. 7).

The treaty limited the postwar Bulgarian Army to a small volunteer force; Yugoslavia, Romania, and Greece were to receive reparations in industrial and agricultural goods; and the victorious Allies were to receive monetary reparations for the next thirty-seven years. On the other hand, the payment schedule was significantly improved in 1923, and Bulgaria's loss of 14,100 square kilometers was much less than the territorial losses of its wartime allies. Nationalist resentment and frustration grew even stronger because of this outcome, however, and Bulgaria remained close to Germany throughout the interwar period.

THE INTERWAR PERIOD

The period after World War I was one of uneasy political coalitions, slow economic growth, and continued appearance of the Macedonia problem. Although social unrest remained at a high level, Boris kept firm control of his government as World War II approached.

Stamboliiski and Agrarian Reform

The 1919 election reflected massive public dissatisfaction with the war reparations, inflation, and rising taxes that prolonged the chaotic living conditions of the war. The socialist and agrarian parties tightened their organizations and increased membership. The left wing of the Bulgarian Workers' Socialist-Democratic Party (BWSDP) numbered only 25,000 in 1919, and the BANU emerged as the largest party in the country. The BANU received 28 percent of the 1919 vote, giving it a plurality but not a majority in the new subranie. Stamboliiski sought to include the Bulgarian Communist Party (BCP)--which had finished second in the election-- and the BWSDP in a coalition government. (The BCP and the BWSDP were the two factions of the Bulgarian communist movement that had sprung from the Social Democratic Party founded in 1891; they would remain separate until the former was disbanded after World War II.) Stamboliiski could not permit the two factions the control they desired, however, so they refused participation.

The postwar governing coalition thus included only factions to Stamboliiski's right. The first major test for the Stamboliiski government was a transport strike that lasted from December 1919 until February 1920. Fomented by the communists and the social democrats and joined by urban workers and middle-class Bulgarians, the striker protests were quelled harshly by the army and the Orange Guard, a quasi-military force that Stamboliiski formed to counter mass demonstrations by the parties of the left.

Suppression of the strike, mobilization of the peasant vote, and intimidation at the polls gave the BANU enough support to win the parliamentary election of 1920 over the communists and form a non-coalition government. Tsar Boris and much of the Bulgarian middle class preferred the agrarians to the communists and social democrats, whom they feared much more. Stamboliiski immediately began drastic economic reforms. He abolished the merchants' trade monopoly on grain, replacing it with a government consortium; broke up large urban and rural landholdings and sold the surplus to the poor; enacted an obligatory labor law to ease the postwar labor shortage; introduced a progressive income tax; and made secondary schooling compulsory. All aspects of the radical reform policy aimed at ridding society of "harmful" classes of society such as lawyers, usurers, and merchants, distributing capital and obligations more evenly through society, and raising the living standards of the landless and poor peasants.

In foreign policy, Stamboliiski officially abandoned Bulgaria's territorial claims, which he associated with a standing army, monarchy, large government expenditures, and other prewar phenomena that the agrarians deemed anachronistic. After the war, no major power was available to protect Bulgarian interests in the Balkans. For this reason, the traditional approach to foreign policy was discarded in favor of rapprochement with all European powers and the new government of Kemal Atatürk in Turkey, membership in the League of Nations (see Glossary), and friendship with the new Kingdom of the Serbs, Croats, and Slovenes (later the Kingdom of Yugoslavia). Relations with Turkey were greatly improved by Bulgarian support of Atatürk's revolutionary Turkish Republic in 1920.

Reconciliation with Yugoslavia was a necessary step toward Stamboliiski's ultimate goal of a multiethnic Balkan peasant federation. Improved Yugoslav relations required a crackdown on the powerful Macedonian extremist movement. Accordingly, Stamboliiski began a two-year program of harsh suppression of IMRO in 1921; in 1923 Yugoslavia and Bulgaria agreed at the Nis Convention to cooperate in controlling extremists.

The Fall of Stamboliiski

Led by a large Macedonian group in Sofia, the strong nationalist elements remaining in Bulgaria found the new pacifist policy alarming. The urban working class, unaided by agrarian reforms, gravitated to the communists or the socialist workers. Inflation and industrial exploitation continued. Many of Stamboliiski's subordinates inflamed social tensions by taking very dogmatic positions in favor of peasant rights. The Bulgarian right, silent since the war, reorganized into a confederation called the National Alliance. Stamboliiski's Orange Guard jailed the leaders of that group in 1922, temporarily stopping its momentum. Meanwhile, in late 1922 and early 1923, Macedonian nationalists occupied Kiustendil along the Yugoslav border and attacked government figures to protest rapprochement with Yugoslavia and Greece. Stamboliiski responded with mass arrests, an accelerated campaign against IMRO terrorism, a purge of his own fragmented and notoriously corrupt party, and a new parliamentary election. These dictatorial measures united the agrarians' various opponents (IMRO, the National Alliance, army factions, and the social democrats) into a coalition led by Aleksandur Tsankov. The communists remained outside the group. Bulgaria's Western creditors would not protect a government that had rejected their reparations policy. In June 1923, Stamboliiski was brutally assassinated by IMRO agents, and the conspirators shortly took control of the entire country with only scattered and ineffectual agrarian resistance.

The Tsankov and Liapchev Governments

Tsankov formed a new government, which Boris III quickly approved. An uprising by the communists, who had hoped the two major coalition factions would destroy each other, was easily suppressed in September 1923. Nonetheless, dominated by the Macedonian freedom factions and the National Alliance, Tsankov's government failed to restore order. When Tsankov outlawed the Bulgarian Communist Party in 1924, the militant communists led by exiles Georgi Dimitrov and Vasil Kolarov became dominant in that organization. The first response to this change was the bombing of Sveta Nedelia Cathedral in Sofia while the tsar was present in 1925, killing over 100. This attack brought a new government reign of terror against the communists and the agrarians. Disunited Macedonian factions also continued terrorist attacks from their virtually separate state at Petrich, causing alarm in Western Europe. In 1926 Tsankov was replaced by Andrei Liapchev, a Macedonian who remained prime minister for five years.

Liapchev generally was more lenient toward political opposition than Tsankov; the communists resurfaced in 1927 under cover of the labor-based Bulgarian Workers' Party, and an Independent Workers' Trade Union became the center of political activity by labor. IMRO also had much more latitude under the Macedonian prime minister; this meant that political assassinations and terrorism continued unabated. IMRO raids into Yugoslavia ended Bulgarian rapprochement with that country, and the Macedonians demanded preferential economic treatment under Liapchev. But compared with the years preceding, the late 1920s brought relative political stability to Bulgaria. Liapchev led a conservative majority in the subranie and had the confidence of Boris. The press was relatively free, and educational and judicial institutions functioned independently of the government. Industrial and agricultural output finally exceeded prewar levels, and foreign investment increased. But even after substantial reduction, Bulgaria's reparations payments were 20 percent of her budget in 1928, and the return to the gold standard that year weakened the economy one year before the onset of world depression.

In foreign policy, Liapchev tried unsuccessfully to improve British and French World War I reparation terms and bring Bulgaria out of its postwar diplomatic isolation. The country had already improved its international image by participating enthusiastically in the League of Nations, which reciprocated by forcing Greek invasion troops to leave southern Bulgaria in 1926. Boris made two European tours in the late 1920s to strengthen diplomatic ties.

In the late 1920s, the Macedonian independence movement split over the ultimate goal of its activity. The supremacist faction sought incorporation of all Macedonian territory into Bulgaria, while the federalist faction (including the IMRO terrorists) sought an autonomous Macedonia that could join Bulgaria or Yugoslavia in a protective alliance if necessary. Violence between the two groups reinforced a growing public impression that the Liapchev government was unstable.

The Crises of the 1930s

Political Disorder and Diplomatic Isolation

The world economic crisis that began in 1929 devastated the Bulgarian economy: The social tensions of the 1920s were exacerbated when 200,000 workers lost their jobs, prices fell by 50 percent, dozens of companies went bankrupt, and per capita income among peasants was halved between 1929 and 1933. A wave of strikes hit Bulgaria in 1930-31, and in 1931 the Liapchev government was defeated in what would be the last open election with proportional representation of parliamentary seats.

Liapchev's coalition fell apart, his defeat hastened by the rise of a supra-party organization, Zveno--a small coalition with connections to most of the major Bulgarian parties and to fascist Italy. The main goal of Zveno was to consolidate and reform existing political institutions so that state power could be exerted directly to promote economic growth. After 1931 Zveno used the economic crisis to instill this idea in the Bulgarian political system. In 1931 the new government coalition, the People's Bloc, readmitted the BANU in an attempt to reunite Bulgarian factions. But the BANU had become factionalized and isolated; its representatives in the coalition largely pursued political spoils rather than the interests of their peasant constituency.

Meanwhile, the Macedonian situation in the early 1930s blocked further attempts to heal Balkan disputes. Four Balkan conferences were held to address the Macedonian problem; but Bulgaria, fearing IMRO reprisals, steadfastly refused to drop territorial demands in Macedonia or quell Macedonian terrorist activities in the region. Such activities had continued under all Bulgaria's postwar governments, but the People's Bloc was especially inept in controlling them. The situation eventually led to the Balkan Entente of 1934, by which Yugoslavia, Greece, Turkey, and Romania pledged to honor existing borders in the Balkans. For Bulgaria the isolation inflicted by this pact was a serious diplomatic setback in southeastern Europe.

In 1932 Aleksandur Tsankov founded Bulgaria's first serious fascist party, the National Socialist Movement, which imitated the methods of Hitler's Nazi party. Although Tsankov's party never attracted a large following, its activities added to the chaotic fragmentation that forced the People's Bloc from power in May 1934.

Fragmentation of the People's Bloc coalition and the threat posed by the Balkan Entente led Zveno and various military factions to stage a right-wing coup. Under the leadership of Colonel Damian Velchev and Kimon Georgiev, the new prime minister, the new government began taking dictatorial measures. The government also took immediate steps to improve relations with Yugoslavia and made overtures to Britain and France. Diplomatic relations resumed with the Soviet Union in 1934, despite a marked increase in internal repression of communists and suspected communists. A concerted drive by the Bulgarian military against IMRO permanently reduced the power of that organization, which by 1934 had exhausted most of its support in Bulgarian society. The fact that sponsorship of Balkan terrorism finally ceased to hinder Bulgarian foreign policy was the single lasting contribution of the Velchev-Georgiev government.

The Zveno group abolished all political parties, citing the failure of such institutions to provide national leadership. The press was muzzled. Henceforeward the state would be authoritarian and centralized; the subranie would represent not political parties but the classes of society: peasants, workers, artisans, merchants, the intelligentsia, bureaucrats, and professionals. Velchev also proposed a wide-ranging program of social and technical modernization. In 1935, however, Tsar Boris III became an active political force in Bulgaria for the first time. Disillusioned by the results of the 1934 coup, Boris took action to regain his power, which the new regime had also curtailed. Boris used military and civilian factions alarmed by the new authoritarianism to maneuver the Zveno group out of power and declare a royal dictatorship.

The Royal Dictatorship

In the years following 1935, Boris relied on a series of uncharismatic politicians to run Bulgaria, weaken the political power of Zveno and the military, and keep other factions such as the BANU, the communists, and the national socialists from forming alliances against him. Boris chose not to restore the traditional political supremacy of the subranie and ignored demands by many public figures to write a new Bulgarian constitution. In 1936 a broad coalition, the People's Constitutional Bloc, brought together nearly all leftist and centrist factions in a nominal opposition that had the blessing of the tsar. Boris delayed holding a national election until 1938. At that time, only individual candidates were allowed in a carefully controlled election procedure that excluded party candidate lists. Boris claimed that domination of the new subranie by pro-government representatives justified his nonparty system, although the People's Constitutional Bloc seated over sixty delegates. Elections in the next two years were strictly limited in order to maintain Boris's control over his parliament.

The Interwar Economy

In the years between the world wars, Bulgarian efforts to raise agricultural and industrial standards closer to those of Western Europe yielded uneven results. Until the mid-1930s, political unrest, steep reparations payments, and the world financial crisis stymied growth. Reparations payments were finally canceled in 1932, however, and the stability of the royal dictatorship brought economic improvement in the late 1930s. Half the European average in 1930, per-capita agricultural production improved markedly when government control forced diversification, new methods, and new markets into the system. In the 1930s, a 75 percent increase in membership of agricultural cooperatives bolstered the financial stability of the agricultural sector, particularly benefiting small landholders. The most notable agricultural trend between the wars was the switch to industrial crops, especially tobacco, which replaced wheat as Bulgaria's top agricultural export. The predominance of small agricultural plots increased, however; in 1944 only 1 percent of holdings were over twenty hectares, while the number of landless families had decreased (see Agriculture , ch. 3).

In the 1930s, Germany bought a huge percentage of Bulgaria's agricultural exports (67.8 percent in 1939), reinforcing economic dependency by selling finished industrial products for nonconvertible currency--a distinct advantage for the Bulgarian economy and a boon to the Bulgarian standard of living. Boris tried to balance German trade by expanding British and French markets, but he found little interest in either country. Although industry remained distinctly secondary to agriculture, contributing only 5.6 percent of the Bulgarian gross national product (GNP--see Glossary) in 1938, between 1929 and 1939 Bulgarian industry grew at an average rate of 4.8 percent, well ahead of the European average for the period. The role of state-owned enterprises dwindled steadily in the 1930s; by 1944, only coal mines, electrical power, railroads, and banks remained predominantly in that category. While large state-sponsored enterprise diminished, small private industries flourished in the 1930s. At the same time, Bulgarian commerce became largely state-controlled and centralized in Sofia, and the social and political dichotomy between rural and urban Bulgaria was even sharper as World War II began.

Foreign Policy in the Late 1930s

By 1939 Bulgaria had moved inexorably into the fascist sphere of Germany and Italy. The country was tied to the former for economic reasons and because Germany promised territorial revision for Bulgaria, and to the latter because Boris was married to the daughter of King Victor Emmanuel III of Italy. In the late 1930s, Bulgaria continued to seek rapprochement with Yugoslavia; a friendship treaty was signed in 1937, and a renunciation of armed intervention in 1938. When Germany took the Sudetenland from Czechoslovakia in 1938, it ended the anti-German Little Entente alliance of Yugoslavia, Czechoslovakia, and Romania and pushed Yugoslavia closer to Bulgaria. When World War II began in September 1939 with the German invasion of Poland, Bulgaria declared neutrality, but this position was inevitably altered by big-power relationships.

The Nazi-Soviet alliance of 1939 improved Bulgaria's relations with the Soviet Union, which had remained cool, and yielded a Bulgarian-Soviet commercial treaty in 1940. The pro-Western Bulgarian Prime Minister Georgi Kioseivanov was deposed that year in favor of pro-German Bogdan Filov, who reduced cultural ties with the West and instituted a Nazi-type youth league. Meanwhile, Boris strove to maintain neutrality, rejecting Soviet treaty offers in 1939 and 1940. Boris also rejected membership in the Balkan Entente and in a proposed Turkish-Yugoslav-Bulgarian defense pact, because such moves would anger Italy, Germany, the Soviet Union, or all three. Under pressure from Hitler, Romania ceded southern Dobruja to Bulgaria by the Treaty of Craiova in 1940. Needing Bulgaria to anchor its Balkan flank, Germany increased diplomatic and military pressure that year. The massing of German troops in Romania prior to invading Greece removed all remaining flexibility; aware that German troops would have to pass through Bulgaria to reach Greece, Bulgaria signed the Tripartite Pact with Germany and Italy in March 1941.