Bulgaria's center-right opposition party says it will start coalition talks after winning the country's first parliamentary elections since the country joined the European Union.  The governing Socialists were defeated following several corruption scandals and concerns over the economy.

Sofia mayor and leader of Bulgaria's center-right party (Citizens for European Development of Bulgaria) party, Boiko Borisov, left, hugs a supporter in the Bulgarian capital Sofia, 06 July 2009

Bulgaria's next prime minister is expected to be Sofia mayor and former bodyguard Boiko Borisov.

With most votes counted, Mr. Borisov's center-right Citizens for European Development of Bulgaria party (GERB) is expected to receive about 120 parliamentary seats,  but one seat short of a majority.

The 50-year-old Mr. Borisov has told reporters he wants to start talks later Monday with at least one smaller party on forming a coalition that he says will tackle corruption and the ailing economy.

Negotiations are also expected with the Blue Coalition, a grouping of rightist parties, which has received about 16 seats.

In addition, Mr. Borisov has pledged to end ethnic tensions in the troubled country. He says we want to treat equally both Christians and Muslims and all ethnic groups who live in Bulgaria. And  Mr. Borisov adds: "Anyone who raises the question of Bulgaria's ethnic map works against democracy and the Bulgarian citizens."

Mr. Borisov's center-right party defeated the ruling Socialist-led coalition, which has been plagued by corruption scandals . Even Sunday's ballot was overshadowed by reports of vote buying.

Last year the European Union froze about $800 million in aid for the Balkan nation of nearly eight million people.

With his party set to pick up just over 40 of Parliament's 240 seats,  the embattled Prime Minister Sergei Stanishev has admitted defeat at a news conference.

Mr. Stanishev says he accepts with respect the choice of the Bulgarian citizens. He says the results mean hardship and a serious loss for the coalition and the Bulgarian Socialist Party.

Yet, Bulgaria's incoming government leader has his work already cut out for him.

The European Commission, the EU's executive branch, recently lifted a suspension of some 115 million euros, or $160 million, for a highway project and technical assistance.  But the commissioner for regional policy, Danuta Hubner, says Bulgaria has to do more to receive hundreds of millions of dollars in aid.

"This decision [to lift the suspension] is also on our side a strong encouragement for Bulgaria to strengthen and to extend the efforts in all areas where funds are still suspended," said Hubner. "And that we have for the future a system that is protecting also the EU funding from any improper or irregular use. "  

Analysts say the new government must also quickly tackle economic policy issues to attract investors, many of whom fled this year, in part because of the global financial crisis.

Mr. Borisov has promised to address the economic troubles, and talks are expected with the International Monetary Fund on a loan arrangement for the EU's poorest nation.   

Sunday's ballot was the first parliamentary election since Bulgaria joined the European Union in 2007.