Bulgaria has absorbed barely half of the money, allocated under the seven EU operational programs for the period 2007-2013 – a total of EUR 6,673,628,244. It might not receive the planned EUR 200 million by the end of the year, Deputy PM in Charge of EU Funds Management Iliana Tsanova has reported. The greatest losses are expected under the Environment and Regional Development OP – some EUR 82 million and over EUR 18 million respectively. The losses within the rural development program and the fisheries one most likely will be EUR 78 million and over EUR 5 million, Agricultural Minister Vassil Grudev added. Besides that the financial corrections of the EC under projects, already implemented come up to EUR 85 million.

This data causes lots of concern and requires the taking of urgent measures in a country where over 70 percent of public investments are due to EU funding. Such a strong dependence on European funding is rare for the member-states and shows only a low level of development, as far as national economy is concerned. The percentage of public expenses for economically strong countries like Germany is barely 4 percent, 2 percent for Belgium, Sweden and Austria, 1 for Ireland, Holland and Denmark, while in Luxembourg it is equal to 0. This only comes to confirm once again that Bulgaria is the poorest EU member-state. However, this should mean that its authorities will put even more efforts to find and provide the funding that is so necessary here. The analysis of the government that based yesterday’s exclusive roundtable of all institutions and organizations involved is a step in the right direction. One of the main conclusions accentuates on the ongoing delay. This year is the 7^th after the EU accession of this country and the 7^th, when Bulgaria can receive EU funding from the structural and cohesion funds. The verified expenses from the beginning of the year up till 15 August came up to barely EUR 626 million or 47 percent of the 2014 goal. At the same time the certified expenses, i.e. those, approved by the EC were a bit over EUR 449 million or 33 percent of what had been planned. So, there are only 4 months left to certify expenses, twice as big. This goal seems to be hard to achieve, bearing in mind that the main reasons for the incapability of the Bulgarian administration to manage EU funds are impossible to be overcome in such a short notice and in these times of political crisis and forthcoming elections. The governmental analysis points out above all the mistakes within the public procurements system, which have caused 74 percent of failures. The vice premier talked even on possible abuse. The ineffective preliminary control and poor administrative capacity of the managing bodies and beneficiaries should be added to that, Vice Premier Tsanova said. So, there is a real danger for Bulgaria to lose the most EU money in 2014. Thus the state might even go down from its current unenviable 24^th position, as far as the absorption degree is concerned, no matter how necessary the EU funding is for this country’s economy and the regions of Bulgaria.

English version: Zhivko Stanchev