site.btaEU-Bulgaria Partnership Agreement to Provide Nearly EUR 16 Bln towards Bulgaria's Economic Growth

Sofia, August 8 (BTA) - The Bulgaria-EU Partnership Agreement, adopted by the European Commission on Thursday, will provide nearly 16 billion euro in support of Bulgaria's economy and economic growth, Deputy Prime Minister in charge of EU Funds Iliana Tsanova told a news conference at the Council of Ministers on Friday.

She said that a total of 9.849 billion euro will be made available under EU Structural and Investment Funds, which will be absorbed through 9 programmes, seven of which operational. In addition, Bulgaria can tap 5.33 billion euro in direct payments, 406 million euro under the Connecting Europe Facility, 165 million euro under the European Territorial Co-operation objective and 104 million euro under the newly  Fund for European Aid to the Most Deprived.

Tsanova said that EU funds are expected to account for 8.7 per cent of GDP growth,  43 per cent of private investment growth, 32 per cent public investment growth, a 6 per cent growth in employment and 37.2 per cent growth in the average wages.

However, she stressed that this won't happen without reforms.

Of the general ex-ante conditionalities that concern all operational programmes,
Bulgaria has fulfilled five, while two have been fulfilled partially. Partially implemented conditionalities are related to the Public Procurement Strategy, highlighting harmonization of the legislative framework with new EU legislation in this area; boosting administrative capacity and introduction of transparent and efficient tenders including an electronic procurement system. Also, there are 35 thematic ex-ante conditionalities that refer to sectoral reforms. Of these 15 have been fulfilled, five are partially fulfilled and 15 have not been implemented.

Ex-ante conditionalities must be fulfilled no later than December 31 2016, otherwise
Bulgaria faces suspension of all or part of EU funding.

Tsanova said that Bulgaria can start implementing projects that are well-prepared and low-risk such as in transport and human resources development. They may be funded from the national budget, but to this end money should be allocated. Taking a question Tsanova said that whether this will happen is up to the next government.

The Deputy Prime Minister said that on Friday she is meeting representatives of the National Fund Directorate with the Finance Ministry, a central body which manages EU cohesion an structural aid, after the Fund stopped payments to the Managing Authority of the Operational Programme Regional Development without any such sanction by the European Commission.