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 t773 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.

Data as of June 1992