Bulgaria is taking steps to speed up adoption of EU funds, as the country is failing to take advantage of EU aid aimed at boosting its economy. Bulgarian economist Petar Ganev says the government's plan to allow banks to take over the management of EU funds is a good idea. "This will probably make the adoption of EU funding more effective," he told Balkan Insight. However, Ganev, who works for the Sofia-based Institute for Market Economy, warns that the authorities need to carefully plan the practical application of the new mechanism.
The Bulgarian government announced on Thursday that it intends to allow banks to take over the administration of EU funds that Brussels makes available for local businesses under the “Competitiveness” and “Development for Rural Areas” programmes, as processing of the projects is currently delayed. Tomislav Donchev, Bulgaria's minister in charge of EU funds, said that if a trial period next year goes well, banks will become responsible for the management of EU funds from 2014. The plan is for banks to accept and assess projects and monitor their development, while the actual distribution of the funds remains in the hands of the government.
Bulgaria, the poorest EU member state, has been criticised for failing to make use of EU money since it joined the bloc in 2007. Delays, red tape, bad supervision and lack of expertise are blamed for the country's failure to access the funds. The budget for EU-sponsored projects in Bulgaria from 2007-2013 is more than eight billion euros. Almost €6.7 billion is being provided by Brussels, while the rest comes from Bulgaria’s state budget.
Three years after joining the bloc, Sofia has so far managed to contract some 35 per cent of that sum, while it has used a meagre €643.3 million, or just 8 per cent, official statistics show.
In 2008, chronic problems with corruption and organised crime in Bulgaria prompted Brussels to suspend hundreds of millions in EU funds for the country.
News source: BalkansInsight link: article
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