eu financing to bulgarian economy spyros argyropoulos latest development in bulgarian economy &...
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EU financing to EU financing to Bulgarian Bulgarian economyeconomy
Spyros ArgyropoulosSpyros Argyropoulos
Latest Development in Bulgarian
Economy & Prospectiveness for CooperationThessaloniki, 9th November 2005
How far has Bulgaria How far has Bulgaria progressed along the road to progressed along the road to
Europe?Europe?
1993 Association Agreement
1995 AA enters into force
1995 Membership application
1997 Candidate status
2000 Opening negotiations
2004 Closing negotiations
2007 Membership
How does Europe assist How does Europe assist Bulgaria along the road to Bulgaria along the road to
Europe?Europe?
PHARE SAPARD ISPA Strengthening
public institutions to function effectively inside EU
Promoting convergence with EU legislation (acquis communautaire)
Promoting Economic and Social Cohesion
Accelerating sustainable agriculture and rural development
Assisting long-term adjustment of agriculture and rural areas development
Assisting long-term adjustment of agriculture and rural areas development
Assisting infrastructure investments in EU priority fields of environment and transport
Accelerating sector and policy reforms in the infrastructure sector
Financial allocations by Financial allocations by programmes 2000-2004programmes 2000-2004
0%10%20%
30%40%50%60%70%
80%90%100%
2000 2001 2002 2003 2004
PHARE SAPARD ISPA
PHARE
30% Institutional Building
70% Investment in acquis and ESC, including CBC programmes
ISPA
50% Transport
50% Environment
Phare CBC programmes in Phare CBC programmes in BulgariaBulgaria
CBC Bulgaria –SCG
(since 2004);2-4 M€/ year
CBC Bulgaria –FYROM
(since 2004);2-4 M€/ year
CBC Bulgaria –Greece
(since 1994)20 M€/ year
CBC Bulgaria –Turkey
(since 2003) 3-7 M€/ year
CBC Bulgaria –Romania
(since 1999)8 M€/ year
Increase in EU appropriations Increase in EU appropriations
for 2004-2006 for 2004-2006 ……
0
50
100
150
200
250
PHARE 203 220 237
SAPARD 68 73 73
ISPA 135 147 158
2004 (m€) 2005 (m€) 2006 (m€)
…… but less forgiving EU political but less forgiving EU political climateclimate
Bulgaria hopes to enter EU in 2007
Safety clauses that could delay the entry till 2008 concentrate on: Justice, Environment, Home affairs
October 2005 EC Monitoring Report did not spread much light on the final entry date but the final decision will be taken in 2006
Further efforts are needed to address certain shortcomings:
increase food safety; reinforce the structures
and mechanisms for participation in EU structural funds;
tackle industrial pollution;
organised crime more effectively.
From pre-accession to structural From pre-accession to structural funds (2007-2013)funds (2007-2013)
ISPA
PHARE
SAPARD
ESF, ERDF
EARDF under CAP
Cohesion Fund
STRUCTURAL FUNDS:
ESF – employment and human resources development
ERDF – productive investment and economic infrastructure
CF – transport & environment infrastructure and energy efficiency
Financial framework for Financial framework for BulgariaBulgaria 2007-2009 2007-2009
Agriculture1,552 mEUR
Structural actions 2,3 mEUR
Internal Policies 268 mEUR
Administration116 mEUR
BulgariaEC
Schengen and Cash-flow Facilities240 mEUR
Total sumTotal sum –% –% of GDPof GDP
Bulgaria, Romania (2007-2009)
as compared to EU new member states (2004-2006)
Total appropriations for commitment - % of GDP
0
5
10
15
20
25
BG RO LV LT EE SK PL MT HU CZ CY Sl
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Maximum appropriations for commitments (mEUR) % of GDP
New FDI data are also New FDI data are also
encouraging encouraging ……
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004
FDI EU accession assistance
…… but policy challenges remainsbut policy challenges remains
It is crucial that Bulgaria takes immediate and decisive action to address issues of serious concern if it is to be ready by the envisaged date of accession:
strengthen the rule of law
improving public administration and the justice system
fighting corruption effectively
OverviewOverview
Where we’ve come from lost years culminating in 1996 crisis strong performance since 1997
Where we are now strong growth despite weak world demand tight fiscal policy, some delays on structural
reform credit boom and current account deficit pose
policy challenge
Where we’re going EU accession: real and nominal convergence Preservation of currency board up to EMU Precautionary program with the IMF
For contactsFor contacts
101, G. S. Rakovski Str., Fl. 11000 Sofia / BulgariaPhone: (+359 2) 9230080Fax: (+359 2) 9230089E-mail: [email protected]
BB&T Ltd. is independent management consultancy company, operating in Bulgaria and internationally.
The company has proven experience of delivering complex and multi-disciplinary projects. Its broad and in-depth expertise fully embraces both private and public sector, being able to bring clients and projects the most appropriate mix of skills and experience.
BB&T provide services at most stages of project cycle: identification, feasibility, operational and technical follow-up, technical advice and support, information and communication, monitoring; as well as studies and research with the emphasis on industrial and commercial development, regional and local economic development strategies and local employment initiatives.