The diplomatic entanglements of Bulgaria and the Great Powers in the period 1894-1914 are well known. Political instability in the Balkans and in Bulgaria itself discouraged extensive and sustained German economic penetration of the region until after 1894. Apart from political difficulties in Bulgaria, Austria-Hungary and Germany frequently found themselves in competition in Bulgaria. Although bound by the Dual Alliance of 1879 and allegedly pursuing a Drang nach Osten, those two great powers frequently worked at cross-purposes both in policies and practices in Bulgaria.
German economic interests in Bulgaria may be observed by examining (a) banking and financial activity and (b) tariff and trade relations. Industrial development including railroad promotions in Bulgaria assumed relatively less significance. German long-term capital investments in 1914 in the entire Balkan area amounted to about one and three-quarter billion marks, a figure that does not appear outstanding in comparison with German investments elsewhere.