The absorption of EU funds is a top priority for the new Bulgarian cabinet after a long-lasting political and economic crisis. The fight for every Euro is mandatory and inevitable for this country, said in an interview for Radio Bulgaria Deputy Premier for EU Funds and Economic Policy Tomislav Donchev. Does this country stand a chance of absorbing all European money, what are the possible risks Bulgaria could face and is this country going to make up for 2014 when the European money was frozen? More from Deputy Prime Minister Donchev himself:

 “These questions are quite difficult. Let us start from the outgoing previous programming period 2007-2013. The payments under this period are to be made until 2015. This is the first risk and our first priority in the next 45 days. 2014 should end with as little financial loss as possible. A given amount is allotted to each year of the programming period and it must be paid out. The situation is very difficult in two of the operational programmes. We should receive EU financing amounting to over EUR 460 million in the next 30 working days of the year which is almost impossible, regardless of our huge efforts. There is also a high risk in the Rural Development Programme. I hope that due to our intense dialogue with the European Commission and hard work until the last working day of 2014 the losses will be reduced significantly. This is our goal and biggest challenge. However, we should make sure the investments are precise and of a high quality. This is something which has always been our biggest priority.”

The construction of Hemus motorway with European money from the new 2014-2020 programming period is the second most important goal of the current cabinet, Deputy Premier Donchev further said. Unfortunately, his forecast made one year ago that in 2014 Bulgaria would fail to absorb any EU funds whatsoever is about to come true. Now the government aims at changing the trend in 2015, but the situation remains complicated. That is why one of the main priorities of the cabinet is to speed up the approval of the new operational programmes in the new programming period. “We must do that to the interest of all Bulgarian municipalities, businesses and citizens. This money amounts to two-thirds of the whole financial resource allotted to public investments in road infrastructure, railway lines, renovation of old buildings, educational and social infrastructure, environment and water, waste management and air quality. If we allow this financing to be cut or be delayed the whole economy would suffer a massive shock and the crisis in the construction sector would be inevitable”, Deputy Premier Donchev contends.

 “We all know well how developed transport infrastructure changed Southern Bulgaria for the better. The most evident example regards the construction of Trakia, Struma and Maritsa motorways. We are witnessing economic recovery near these motorways, a higher investor's interest in the industrial sector and the service field. That is why Hemus motorway is of a national priority. The construction of this motorway would reduce the difference between Northern and Southern Bulgaria along the Black Sea coastline, as well as in the country's inland regions. Currently Northern Bulgaria looks like a transport enclave, which is intolerable. This affects the economic development, the level of investments and the unemployment rate in this area. Along with Hemus motorway we must complete Lot 3 of Struma motorway, Transport Corridor 4 between Vidin and Sofia, which links two major European projects - Danube Bridge 2 and Struma motorway. We must also build the tunnel under Shipka pass which is part of Transport Corridor 9 and a road link between Northern and Southern Bulgaria and the two big motorways Trakia and Hemus. The problem is that the money allotted under the Transport operational programme is less than our ambitions.”

"The money shortage ranges between EUR 200 million and EUR 700 million. The state budget for 2014 has enough money to make the necessary payments until the end of the year. The good news is that last week the European Commission unblocked the payments under the Environment OP which amounts to nearly EUR 800 million and Bulgaria is likely to receive half of this amount by the end of this year. The bigger problem regards the suspension of payments under another EU program - Regional Development OP. Speaking of the 2015 state budget it could be affected by possible financial payments, so that the country can unblock the EU money under the Environment and possibly under the Regional Development Operational Programmes. However, we must find a solution to this challenge in the next one month or so”, Bulgaria's Deputy Prime Minister Tomislav Donchev concluded. 

English version: Kostadin Atanasov