The European Commission urged Bulgaria and Romania to speed up reforms before their planned accession into the European Union on January 1, 2007 and delayed its final recommendation on their entry review.

In a keenly awaited progress report, the EU executive said Bulgaria and Romania will have to wait until the last minute to find out whether they can join the European Union in 2007, or have to wait another year.

Since the Commission's last progress report in October, 2005, Bulgaria has reduced the number of red flags, or "areas of serious concern" to six down from 16. Romania has four problem areas left.

During the May 16 session of the European Parliament in Strasbourg, EU Commission President Jose Barroso said the commission will review the situation in October 2006, by the latest, to see whether 2007 is still doable.

"Romania and Bulgaria should be ready to join the EU in 2007 if they address outstanding issues," Barroso said.

He called on Bulgaria to show more tangible results in tackling high-level corruption and crime, and in demonstrating the independence of the judiciary.

Barroso said the upcoming enlargement will be a success. "Today it is more important than ever to preserve the spirit of openness and ambition."

Taking the floor right afterwards, Enlargement Commissioner Olli Rehn praised the efforts of both Bulgaria and Romania to meet the conditions for membership, but stressed they are to step up efforts in the fight against corruption and organized crime.

In the plenary of the European Parliament on Tuesday, Rehn summarized the progress - and shortages - in the achievements of Sofia and Bucharest to complete EU-bound reforms so that to meet the target date of accession - January 2007.

He called to Bulgaria to increase seriously its efforts in combating organized crime. Brussels also wants concrete evidence on tackling corruption.

"Both Bulgaria and Romania must work harder for improving human rights and the rights of minorities," the EU chief for enlargement said.

Bulgaria - the same as Romania - could face serious EU membership restrictions and cuts to EU funds after they join, unless they manage to set up agencies managing Europe's funds, Rehn pointed out. Both states risk farewell to billions of euros, if the required agencies are not in place.

Sofia has also delayed the institutional arrangement for payment of EU farm aids, the EC report says.

In conclusion, Commissioner Rehn urged for swifter ratification of the Accession Treaty of Bulgaria and Romania by the countries still pending on it. To date, 17 EU Member states ratified the key accord.

The President of the European Commission Jose Barroso and Enlargement Commissioner Olli Rehn will travel to Sofia and Bucharest this evening to encourage both with what Barroso described as "clear messages".

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