site.btaBusinesses, Government Discuss EU Funds

Businesses, Government Discuss EU Funds

Sofia, May 19 (BTA) - Confederation of Employers and
Industrialists in Bulgaria (KRIB) Chairman Kiril Domouschiev
told a meeting on Tuesday that it is the job of businesses to
prepare and propose good projects while the government is
supposed to run the Operational Programmes well. Domouschiev
said that the meeting, entitled "Nine Paths to EU Funds
2015-2020," was intended to establish dialogue on key topics
concerning the absorption of EU funds.

The event was attended by Prime Minister Boyko Borissov, members
 of his cabinet and over 150 senior business executives.

Domouschiev added that many positive steps have been made and
many lessons have been learned in the first seven years of EU
assistance to Bulgaria. The management of EU funds is pragmatic
and takes into account the needs of businesses, he said.

He pointed to a disturbing rule according to which companies
have to return 25 per cent of the aid they have received if they
 fail to achieve growth. KRIB wants easy access to cheap cash
resources and is opposed to the practice of financial
corrections.

Deputy Prime Minister for EU Funds and Economic Policy Tomislav
Donchev said that 2015 will not be a "zero" year in terms of
absorbing EU aid. This kind of aid will be the main driver of
the Bulgarian economy, although it is not good for the country
to rely mainly on EU money, but as a new member state Bulgaria
needs to count on that, Donchev said. He noted that five of
Bulgaria's seven new Operational Programmes have been approved.

Procedures for several billions of leva for the current
programming period should be announced in 2015, he said.

Some 82 per cent of the entire financial framework of the
previous programming period has been fulfilled and the ratio
will increase to more than 90 per cent. Although this is not an
excellent result, it is a good result, Donchev said.

Bulgaria expects to be able to use 100 million euro in financing
 under the small and medium-sized enterprises support initiative
 which does not involve any national co-financing. The money can
 be made available to businesses at the end of 2015 or the
beginning of 2016, Donchev said. The procedure currently
includes Spain and negotiations are underway with Malta, so
Bulgaria will be the third country, he said.

Economy Minister Bozhidar Loukarski said his ministry has sought
 to make sure that Operational Programme "Innovation and
Competitiveness" produces value added in order to boost business
 enterprise.

Finance Minister Vladislav Goranov said EU aid to Bulgaria will
be managed by a single fund which he called "a funds' fund." It
will probably be established as a state-owned sole proprietor.