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There was a new twist in the ongoing drama surrounding recent attempts to privatise Bulgaria's state-owned Bulgarian Telecommunications Company (BTC) August 22 when, in a last minute decision, the Bulgarian Privatisation Agency (PA) decided to refer the offer made by Viva Ventures to the agency's politically-appointed governing body - the supervisory board.

The following interview with Turkish Deputy Prime Minister and Foreign Minister Abdullah Gul is taken from the forthcoming Oxford Business Group publication, Emerging Turkey 2004. For more information on how to order a copy of the most comprehensive review of the Turkish economy to date, please write to us at mail@oxfordbusinessgroup.com.

The surprise resignation - then de-resignation - of the country's finance minister last week brought to the surface once again continuing doubts over the future of Bulgaria's governing coalition. With the minister publicly airing allegations that he was being undermined by members of his own party - whom he claimed were refusing to support him over controversial budget cutting policies - the resignation crisis also cast doubts in the minds of many market makers. With the minister's return, international organisations warned there could be no deviation from the established economic programme.

After the passage of an important European Union harmonization package through parliament in early August, many Turks had begun to wonder just how the new reforms would go down with the country's powerful military. With their powers curbed, some opposition from the generals - and their stanch secularist allies - was widely expected. However, this has so far failed to materialize, as the government has adopted a "go softly" approach to the legislation's implementation, with the public's broad support for EU membership giving the harmonization package a sound political basis.

With the first Bulgarian troops departing for Iraq amidst tight security on August 11, Sofia followed other East European states in supporting the US-led occupation force. However, there were also concerns over just what the soldiers might be getting into – alongside hopes that the intervention might bolster Bulgaria’s chances of a share in reconstruction.

Turkish investors and voters were in bullish mood this week, after a rash of positive economic and political news. This had sent markets higher, delighted the country’s pro-European camp and further strengthened the hand of the ruling Justice and Development Party (AKP).