The leaders of the three parties that make up Bulgaria's ruling coalition are expected to meet over the next days to discuss the Government's response to a European Commission (EC) report due on July 23, which is widely expected to slam Sofia's progress in fighting corruption and organised crime.

Sources close to the party leaders expect that the two coalition partners will recommend Socialist Prime Minister Sergei Stanishev to reshuffle his Cabinet, but would not put too much pressure on him to do so.

National Movement for Stability and Progress leader Simeon Saxe-Coburg has reportedly already hinted to Stanishev the need for a few cabinet replacements, vowing at the same time that the party would not leave the coalition, a high-ranking Socialist politician said.

People would be going to the polls annually if the government threw in the towel every time a critical EU report comes out, the Socialist party's secretary Anton Koutev said on July 22.

The Socialists met to discuss the party's reaction to the draft EC report and a recent report of the EU anti-fraud office Olaf on funding irregularities. Their conclusion was that "Bulgaria and Romania have been made scapegoats for internal EU processes."

At a working meeting with Stanishev, Finance Minister Plamen Oresharski reportedly said that efforts were being made to carry out the action plans to deal with the irregularities in the allocation of Phare, Ispa and Sapard funds. Results should be expected by September, he said.

The Government press service said that Justice Minister Miglena Tacheva presented to Stanishev the concept for a new criminal justice policy and a new criminal code that should be ready over the next couple of months.

Meanwhile, in Brussels, Bulgarian Foreign Minister Ivailo Kalfin said he expected to see a great difference between the actual EC report and the drafts that have preceded it. Like other Socialist politicians, he expects the tone of the official report to be mellowed down.

Socialist MPs conceded that several ministers could lose their jobs but only if the coalition partners, especially Movement for Rights and Freedoms leader Ahmed Dogan, exert the necessary pressure.

Most high-ranking politicians that spoke to Dnevnik dismissed the likelihood of any cabinet sackings. Dogan is not expected to make any demands in that sense, while Saxe-Coburg is likely to urge immediate and comprehensive measures but will leave the prime minister to take the necessary decisions.

The parliamentary opposition is scheduled to file a no-confidence motion against the Government on July 23, over the material and moral damages caused by the inefficient management of EU funding.