Bulgaria has a very strong moral point as well as responsibility to take on a more active role in the European Union given the macroeconomic indices of the country, Commissioner for Regional Policy Johannes Hahn said while on a recent visit to Bulgaria. He arrived to Sofia for the inauguration of the new Bulgarian President Rosen Plevneliev who previously served as minister of regional development and the two officials often worked together. However Johannes Hahn specified he had come to the lovely Bulgarian capital also to render support to the Bulgarian government for the implementation of major infrastructure projects. Bulgaria has asked the European Commission to cut the share of this country in EU projects’ financing from the national budget, from the current 20 percent down to 5 percent due to its good fiscal discipline. Bulgaria is one in a small minority of EU countries keeping its budget deficit below 3 percent. This is coupled with a small foreign debt as well.
Emerging from his meeting with Bulgarian PM Boyko Borissov, Johannes Hahn confirmed he supported the demand raised by Bulgaria with the argument that it was “realistic”.
Johannes Hahn voiced his support for Bulgaria at the signature of a memorandum of understanding between the government and officials from three banks – the World Bank, the European Investment Bank and the European Bank for Reconstruction and Development. This is a new model based on a Bulgarian idea for assistance from the international financial institutions backed by the European Commission. Bulgaria is the first country where the model will be tested. Based on the Bulgarian experience it will be applied in other countries. The new model will enable this country to absorb faster and more efficiently European funds allocated for the construction of major infrastructure sites including express highways, railroads, water treatment plants etc. Assistance is provided through the delivery of consultancy services with a view to boosting administrative capacity at central, municipal and local levels. As a measure to cut unemployment the new model will assist and support small and medium enterprises. Therefore EU Commissioner Johannes Hahn pointed out that it was now the time for Bulgaria to make full use of the European and international financial instruments.
This assistance is of paramount importance for Bulgaria, PM Boyko Borissov believes. He and Johannes Hahn have elaborated the map of high-speed roads and express highways that this country needs. The commissioner has signed the map by a token of support similarly to EC President Jose Barroso.
“At the start of our term of office we found out that all programmes with EU financing for Bulgaria had ground to a halt” Boyko Borissov said recalling the situation in 2009. “Today EU Commissioner Hahn said publicly that absorption had grown manifold. So far absorbed financing is about 24 percent. With the administrative capacity that is granted to us through assistance from banks, I am convinced that in 2012-2013 absorption will reach 40-50 percent. This is very important because now, during the current programming period, negotiations are underway of the size of financing for the country over the next period. And during the next programming period Bulgaria should have enough financing from the European Union to be able to complete its basic infrastructure and allocate sufficient funding to ecology and energy efficiency.
PM Boyko Borissov hopes that as soon as EU Commissioner Johannes Hahn returns to Brussels he will hand over to the competent authorities the Bulgarian demand for cutting Bulgarian co-financing in EU projects.
Written by Tatiana Obretenova
Translated by Daniela Konstantinova
