Bluish smoke from cars betrays Bulgaria's poverty

By Elena Lalova Jul 25, 2007, 4:15 GMT

Sofia - Bulgaria is a member of the European Union now but albeit one its poorest as evidenced on the roads where Soviet-era relics continue spluttering smoke.

Bulgaria's accession to the EU on January 1 led to the scrapping of the 20 per cent VAT on cars imported directly and without a dealer and subsequently to a corresponding drop in prices.

In a chain reaction, prices plunged across the used cars market, where the vast majority of Bulgarians, who earn a minimum wage of less than 150 dollars, must resort to for a vehicle of choice.

On the many lots, a 12-year-old Fiat or a 1996 VW model can be had for between 3,000 and 4,000 leva (2,100 to 2,800 dollars), while the asking price for a 1999 Land Rover is 16,000 leva, all roughly one- fifth cheaper than last year.

Held in particularly high esteem are 'first registrations,' the freshly imported cars never before tortured on Bulgaria's potholed roads.

Bulgarians realized that the costs would drop, so many were ready to bolt for Western used car lots. In the first five months of 2007, the number of newly registered second-hand cars imported from Europe - mostly Italy - doubled to 120,000 over the corresponding period in 2006.

Of that, 70 per cent were imported directly by the buyers - which has saved them VAT, though forcing them to spend days queuing to complete the paperwork.

By the end of the year, a figure of 300,000 imported cars could be surpassed - sending Bulgaria further along the path to becoming Europe's scrapyard.

Though far cleaner than the East German two-stroke Trabants and Wartburgs or Russian Ladas and Moskviches from the 1970s, the 10 or 15-years-old cars often release enough blue or black smoke to obscure the vision of those driving behind them.

The average age of the 2.4 registered vehicles is 19 years and the import of cheap, outdated cars from the West is not helping the environment - land, water and air, experts warned.

New cars registered in Bulgaria must meet strict EURO-4 gas and noise emission standards. Amazingly, old cars, discarded as polluters in Germany, Italy and elsewhere in Western Europe, can still be registered free even of the so-called 'ecology tax' which in some countries discourages people from buying vehicles with dirty engines.

Safety - airbags, traction controls, brake assistants and similar gadgets available in more modern vehicles - is another aspect thoroughly overlooked by Bulgarians in a hunt for a bargain.

Under the circumstances, the dealerships of new cars are facing an uphill battle in Bulgaria. Though they also broke a sales record with 20,000 vehicles sold since the start of 2007, they are still losing to the used-car traders 1:6 - like the environment and those injured in traffic accidents.

Experts insist that there would be no turnaround until a Bulgarian government introduces an ecology tax. That, however, is unlikely to happen in the Balkan country in the foreseeable future.