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EU to suspend funds to Bulgaria EU to suspend funds to Bulgaria
(about 5 hours later)
In an unprecedented move, the European Commission is set to block two Bulgarian agencies from using EU funds worth hundreds of millions of euros.In an unprecedented move, the European Commission is set to block two Bulgarian agencies from using EU funds worth hundreds of millions of euros.
The move is prompted by concerns over corruption and organised crime.The move is prompted by concerns over corruption and organised crime.
The penalty comes with a set of scathing reports condemning the failure to tackle deep rooted corruption in Bulgaria and its neighbour Romania. The penalty comes with a set of scathing reports condemning the failure to tackle deep-rooted corruption in Bulgaria and its neighbour Romania.
Both countries have been under close supervision since they joined the European Union in 2007.Both countries have been under close supervision since they joined the European Union in 2007.
Eighteen months after it joined the EU as the bloc's poorest member, Bulgaria risks losing millions if not billions in EU aid. Eighteen months after it joined the EU as the bloc's poorest member, Bulgaria risks losing millions, if not billions, in EU aid.
Fragile reforms 'Growing frustration'
In the toughest terms ever used about a member state, the EU executive says that despite some efforts to fight corruption and organised crime, Bulgaria's institutions look good on paper but do not produce good results in practice. In the toughest terms ever used about a member state, the EU executive says that despite some efforts to fight corruption and organised crime, Bulgaria's "institutions and procedures look good on paper but do not produce good results in practice".
A series of reports due to be published on Wednesday describe a growing sense of frustration among other EU countries. One of the series of reports due to be published on Wednesday condemns "a lack of commitment to act swiftly and decisively when fraud is identified", and refers to "a strong suspicion of the involvement of organised crime".
The European Commission is now set to block two key Bulgarian agencies from handling EU money. The reports describe a "growing sense of frustration" among other EU countries who have sent experts to support Bulgaria.
Romania will escape penalties for now, but the report says reforms there are fragile and it condemns parliament for delaying corruption inquiries involving a former prime minister and other top officials. The European Commission is now set to block two key Bulgarian agencies from handling hundreds of millions of euros of EU money.
Amid widespread wariness about further EU expansion, the message from the European Commission is that unless the newcomers behave they will have to pay the price. However, after strong lobbying from the Bulgarian government, the report has been toned down in the last few days.
A warning that corruption allegations could delay the country's admission to the Schengen passport-free area and the euro-zone has been removed, and more changes could be made before the 27 European Commissioners approve the final version later on Wednesday.
Bulgaria's newly appointed deputy prime minister in charge of EU funds, Meglena Plugchieva, insists Bulgaria is making progress, but told the BBC it would take time for the results to show.
"It is true there are some deficits, but this is a big challenge for Bulgaria, a big transformation, " she said.
Romania 'lenient'
Romania will escape penalties for now, but the report says reforms there are "fragile," and it condemns parliament for delaying corruption inquiries involving the former Prime Minister Adrian Nastase and other top officials.
The report also calls on Romania not to adopt legal changes that would make it much harder for prosecutors to search the homes and wire-tap the phones of corruption suspects.
While praising the "consistently good record" of Romanian prosecutors, the European Commission notes that in 90% of corruption cases, lenient judges deliver the minimum penalty.
But the Commission is no longer in a mood for leniency. Jacki Davis from the European Policy Centre in Brussels says there is a clear message to Bulgaria and Romania, but also for EU candidates from Croatia to Turkey.
"Negotiating the terms of your EU membership isn't the end of the story. If you make promises, you have to live up to them. So it's shape up or face sanctions," she says.
Amid widespread wariness about further EU expansion, Brussels is also making clear that it will not allow tax-payers' money to end up into the wrong pockets.