site.btaNo EC Sanctions Have Been Imposed to Reduce Funding Available to Bulgaria

No EC Sanctions Have Been Imposed to Reduce Funding Available to Bulgaria

Sofia, June 21 (BTA) - During the 2007-2013 EU programming period the managing authorities of EU-backed operational programmes detected irregularities worth 446 million leva, which were deducted from project payments and transferred to other  measures of support. This is contained in a analysis by the Central Coordination Unit for Management of EU Funds with the Council of Ministers. Preliminary data suggest that the aggregate financial corrections will not exceed 4 per cent of the available EU funding for the period, or some 620 million leva.

Financial corrections are a tool used by the executive to control the implementation of EU-funded projects and ensure that spending complies with national and EU rules. In cases of violation the managing authorities can deduct a portion of the approved project funding and transfer it to other support measures.

For its part, the European Commission can carry out checks and impose financial corrections including in cases when an EU member state fails to fulfil its obligations to address irregular spending. So far the Commission hasn't imposed any financial sanctions on Bulgaria to reduce available funding.

The analysis suggest that the size of sanctions has increased through the years mainly due to suspended payments under two of the largest operational programmes in 2014. By comparison by the end of 2013 financial corrections under all EU programmes totalled nearly 166 million leva and in 2014 they exceeded 280 million leva. Since 2015 a mechanism has been put in place in support municipalities, which have to refund EU money due to irregularities. The local authorities can apply under the scheme for an interest free loan from the government to cover.

The exact amount of financial corrections is yet to be established as estimates of the managing authorities are audited and some are challenged in court.