The European Sustainable Competitiveness Programme 2007- 2013
Is a major European programme for funding projects of the private business. Its main goals are innovation and modernization of small and medium-sized enterprises in Bulgaria. This operational programme funds directly the private business, while enabling it to make investments in new machinery and equipment.
Although the programme has been running for 4 years now, Bulgarian business is losing interest in the EU funds. Very few projects have been filed in the last few months, and the number of candidates in certain categories has dwindled almost 50%. Figures show that even when companies win a EU funding project, some of them give up after a certain time.
According to preliminary data, the projects under the scheme Technological modernization of small and medium-sized enterprises are less than 600 in Bulgaria. What is more, the number of candidates applying for the scheme is expected to hit record low levels. Last year, for example, the applications that were submitted were some 800. The programme Technological modernization of small and medium-sized enterprises kicked off 10 May this year and finished 10 August. The highest amount that can be granted under the program is 50 million euro. However, there will be a second invitation for applications under the scheme in the 4th quarter of 2010. Only representatives of the high-tech, production and waste-management enterprises, which were considered priority sectors by the Ministry of Economy, Energy and Tourism, were eligible for the current selection process.
According to consultancy companies, the interest of Bulgarian business in the EU funding has dropped down from previous years. Companies are discouraged from slow and awkward procedures, as well as from the projects’ assessment, which takes nearly a year. They seem to have lost faith in the entire system. Delayed payment, for instance, is among the factors that troubles companies the most. Enterprises find it almost impossible to provide a 100% bank warrant on the amount of money they can receive in advance to launch their project. Therefore, Bulgaria’s Ministry of Economy, Energy and Tourism has introduced some changes to improve the EU funding procedures by reducing the percentage of projects which drop off on an administrative level.
The financial crisis is also a grave impediment for companies. Most enterprises willing to apply for the Technological modernization of small and medium-sized enterprises programme go for more humble projects to the tune of some 10 000 euro. “If in 2008 most enterprises aimed to receive aids to the amount of 500 000 euro, now the threshold has fallen significantly”, EU projects consultants comment. Most companies’ turnover hardly meets requirements, and their turnover and market share indices have deteriorated down from last year.
Since 2007 the absorbed funds under the Competitiveness Programme have been some 1.12% off the whole budget. By 2013, some 1.162 billion euro, of which 988 million euro is gratuitous aid, should be used in. Bulgaria is expected to provide the other 174 million euro. These funds can be put into Bulgaria’s economy and make it more competitive. Out of 739 contracts signed under the program, 172 were cancelled at the request of the beneficiaries, and only 69 were paid out in full.
English version: Vyara Popova
