Abuse of Funds - EU Threatens Bulgaria

Views on BG | May 21, 2008, Wednesday // 00:00

From Die Welt

(Title in German: Missbrauch von Geldern - EU droht Bulgarien)

By Christoph B. Schiltz

Translated from German by Ivan Dikov

Corruption and mafia murders are on the agenda in Bulgaria, and they are increasingly causing annoyance in Brussels. Now the European Commission has set Bulgaria a time period, in which it must prove that the rules are abided by. Otherwise, the EU will cease its money transfers.

No one is surprised in Bulgaria but in Brussels the case is being followed with increasing tenseness: the manager of a big traffic department has allegedly embezzled the allocation of 50 million euros of EU-taxpayers' money, and has made sure his brother gets them.

This is not an isolated case. In Bulgaria, which has been EU member since January 2007, corruption is blossoming despite further constraints from Brussels. Mafia murders and the abuse of EU funds are on the agenda. The officials of the European Commission are astonished - their letters to the Bulgarian authorities are often not even forwarded to the persons in charge.

From Brussels' point of view no other acceding country has ever violated the rules of the Community as Bulgaria has. The Prime Minister Sergey Stanishev has recognized the problem - in May he appointed Meglena Plugchieva as his deputy. She has the authority to dismiss at will corrupt administration officials.

Yet, she does not have much time. The head of the European Commission on enlargement issues Michael Leigh has given Sofia a deadline: the Bulgarian government needs to prove by June 16 that the rules for the allocation of EU funds are obeyed. In case this does not happen, the money transfers from Brussels worth billions of euros could be suspended according to comments in the Commission administration. In any case, in the coming six years Bulgaria must receive over 10 billion euros from the EU budget - 3,5 billion as agricultural subsidies and 6,85 billion to support regional development.

Export Prohibitions Threaten Bulgaria

A delegation of EU supervisors left for Bulgaria today (May 20). They are examining the allocation of financial means - whether the EU standards in the field of justice and consumer protection are obeyed. In July the Brussels' authorities will submit a report. Then it will become clear whether the EU will really take drastic measures against one of its members, or it is only threatening to do so. Together with the freezing of money from the EU funds, export bans on foods and the non-recognition of judicial verdicts have been mentioned.

The EU institutions have already made the first stitches - the payments from the pre-accession programs PHARE and SAPARD were closed off in March over gross irregularities, a total of about 50 million euros.

Brussels is in the horns of a dilemma in the case with Bulgaria. If sanctions are imposed against the country, Sofia could take revenge, and refuse to give its approval for decisions requiring unanimity - this would block the legislation of the EU.

The inhibition of funds could also lead to dangerous anti-European sentiments in Bulgaria.

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