/ world today news/ For the years 2014-2020, Bulgaria will have around 7 billion euros for regional policy from the EU, as before, but spending them will be much more difficult. This was stated by Ivaylo Kalfin, co-rapporteur of the European Parliament on the EU’s long-term budget at a discussion on the future of the Bulgarian regions and the European budget today in Sofia.
The MEP pointed out that, for the first time, conditions are being set before access to the structural and Cohesion Fund, the implementation of which could become a problem for Bulgaria and lead to the blocking or loss of European funds.
“The European Union cannot solve our problems. Bulgarian problems are solved in Bulgaria. The EU can help, but it cannot replace the lack of national policies with European ones,” said Ivaylo Kalfin. According to him, the total amount of funds for Bulgaria is less important than the questions of how much of it can be used and for what.
Karsten Rasmussen, deputy head of the unit for Bulgarians in the regional directorate of the European Commission, announced that the net absorption of funds under the Structural and Cohesion Fund in Bulgaria for 6 years is 27% and there is a great danger that the country will return money to Brussels.
Rasmussen urged Bulgarian politicians to make reforms, pointing out that the lack of them will lead to a loss of funds, because “we cannot put money into sectors that do not work, as this will delay reforms”.
“Bulgaria needs better governance,” insisted Rasmussen. Project procedures are too bureaucratic and decision-making by the administration too slow. Administrative capacity is insufficient and the justice system continues to create problems. The business environment needs to be improved and the investment climate.Hundreds of companies give up on European projects because banks refuse them loans, they can’t wait for slow decision-making or they don’t trust the ministries, he said.
Rasmussen also outlined the European Commission’s expectations for policy change by sector. The EC will finance the completion of the Struma and Trakia highways, as well as the development of public transport and railways, but will not pay for internal roads. Regarding the reforms, he gave the example that Bulgaria invests in new rails, and not replacing wagons and locomotives, which renders the new rails meaningless. He warned that if the approach does not change, Brussels will cut money for infrastructure.
The European Commission is not satisfied with the water sector either. Bulgaria needs to invest billions to reach the European standards for wastewater treatment. At the same time, investments are limited and at least 80 cities need new treatment plants, he pointed out.
A challenge for the future government is the funding of science and research. Bulgaria is ahead of only Cyprus in investments in science, and if the next cabinet does not change this, “you will have to accept that you will not develop science, and Bulgarian scientists, who are still working in other countries, will never return,” said the representative of Brussels.
Rasmussen said the government’s inconsistent policy in the energy sector has confused investors and cited the administration’s controversial approach to renewable energy as an example. Bulgarians pay the lowest prices for electricity, but it turns out that they too cannot afford it, he commented. If energy efficiency is not improved, energy waste in homes and businesses will continue.
He pointed to the aging of the population and the growing need for the integration of the Roma population into the labor market as risks to the country’s development.
“Now is the time for Bulgaria to decide what kind of country it wants to be – the workshop of Europe, a tourist country, a center for science and development, or a little bit of everything. The choice is yours, we want to know in order to be aware of how the European funds will be spent,” summed up Rasmussen.
According to him, the European Commission hopes that the new Bulgarian government will begin active work on the drafting of the Partnership Agreement with Brussels in the summer, through which the money for rapprochement will be spent in 2014-2020. The European Commission hopes to finish the negotiations on it before the end of the year when it should enter into force.
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