With parliamentary elections due in mid-2013, Prime Minister Boyko Borisov's Citizens for Bulgaria's European Development (GERB) leads opinion polls, but Sergey Stanishev's Socialist Party (BSP) is catching up.

This is the observation of a report by prestigious global analysis and advisory firm Oxford Analytica, issued on January 2 and entitled "Controversies Weaken Bulgarian Government".

The analysts expect that during the next months the ruling party will take advantage of its control over state institutions to preserve its lead.

Regardless of the line-up of the next government, no significant changes are expected in the macroeconomic framework thanks to the Currency Board System and the country's prudent financial policy.

The report pays special attention to the controversial election of new prosecutor general by the Supreme Judicial Council (SJC), which the opposition vehemently criticized.

Sotir Tsatsarov is to be sworn in as prosecutor general on January 10 for a seven-year term.

According to Oxford Analytica the next monitoring report for Bulgaria under the CVM mechanism, scheduled to be published by the end of 2013, will be very critical.

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