site.btaFinance Minister: Talks Continue with European Commission to Include REPowerEU Chapter in Recovery Plan

Discussions are ongoing with the European Commission to include a REPowerEU chapter as part of Bulgaria’s Recovery and Resilience Plan. To date, nine project proposals have been received by the Ministry of Finance: seven from the Ministry of Energy, one from the Ministry of Regional Development and Public Works, and one from the Ministry of Environment and Water. The information was revealed by caretaker Finance Minister Lyudmila Petkova during a hearing in Parliament on the implementation of the budget, including the implementation of revenues and expenditures under EU operational programmes, as well as the progress of the negotiation process for Bulgaria's accession to the euro area. 

Petkova responded to a question from GERB-UDF MP Temenuzhka Petkova on the lack of such a chapter in the Plan and the reasons for this.

The REPowerEU chapter is part of the Recovery and Resilience Plan, the projects and investments should be linked in the energy sector, Petkova explained. She said Bulgaria had to develop this chapter by December 31, 2023 at the latest because by then it could have received a 20% advance payment under the Plan. 

Petkova pointed out that the chapter has not yet been approved by the EC. She explained that after the last ECOFIN meeting, the EC informed all member states that Bulgaria did not have a REPowerEU chapter developed.  

Petkova couldn’t say exactly for what reason this chapter has not been developed. According to her, it is part of the Recovery Plan negotiations. The Finance Minister reported to MPs that a preliminary version of the changes to the Plan was sent to the EC on February 5, a technical mission of the EC was held on March 18-20 when proposals for changes to the plan itself, including proposals for REPowerEU, were discussed. She assured that preparations for the amendment are ongoing. 

Asked by MRF about the implementation of the reform of the EU economic governance framework, Petkova replied that from this year every member state should prepare a medium-term structural fiscal plan to replace the convergence programme and the national reform programme.

The plan itself covers a four-year period and will include fiscal policies, reforms and investments, Petkova added. She pointed out that consideration should be given to whether Bulgaria's capital programme should be developed over a four-year period. The first plan should be prepared by September 20, Petkova said and insisted on a preliminary discussion of the structural-fiscal plan in Parliament.