Enlargement Commissioner Olli Rehn called for swift ratification of Bulgaria and Romania by the states still pending on it. He did this towards the end of what is widely regarded as an optimistic report on the progress made by the two countries on the path to the EU.

The European Commission has recommended that Bulgaria and Romania join the EU next year as planned, but only if they fulfil additional conditions.

Though both Bulgaria and Romania strive to meet the conditions for membership, they are to step up efforts in the fight against corruption and organized crime, the enlargement commissioner 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.

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

Rehn noted that a special monitoring system could be put in place in the first three years after Sofia and Bucharest join if efforts to tackle corruption and reform the judiciary systems do not yield satisfactory results.

The report has been awaited with considerable excitement by both Romanians and Bulgarians.

To date, 17 EU Member states ratified the Accession Treaty. Bulgaria itself ratified the Treaty on 11 May 2005.

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