site.btaEuropean Commission Partially Greenlights Bulgaria's Payment Request of EUR 1.6 Bln under NextGenerationEU

The European Commission (EC) has approved Bulgaria's request for EUR 1.6 billion in funding under the Recovery and Resilience Facility (RRF) - the centrepiece of NextGenerationEU – the Commission's post-pandemic programme to support Member State's recovery, economic growth, and competitiveness, the EC said on Tuesday.

Following Bulgaria's third payment request of EUR 1.6 billion submitted on October 1, the EC found that the country had implemented 22 reforms and 19 investments benefiting citizens and businesses. These reforms and investments focus on key areas such as the green and digital transition, research and innovation, healthcare, social protection, sustainable transport and modernization of businesses. According to the Commission, Bulgaria has successfully completed 48 of the 50 milestones and targets included in the third payment request under its Recovery and Resilience Plan.

The EC states that this positive assessment is an important step towards the disbursement of EU funds to support Bulgaria's economic growth and resilience efforts. Key measures covered by the third payment request include the prohibition of new coal or lignite electricity production installations, capping the annual CO2 emissions for existing coal and lignite plants, developing renewable sources for electricity production and storage facilities, and making the healthcare profession more attractive.

However, the Commission notes that two milestones - setting up of an anti-corruption body and the entry into force of legal act(s) concerning the criminal proceedings and the accountability and criminal liability of the Prosecutor General - still need to be completed to a higher standard. The EC therefore proposed to temporarily defer part of the payment, stressing that this approach enables Member States to receive funds for successfully completed milestones and targets while working on those not yet completed.

The EC has sent its preliminary assessment of Bulgaria's fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), which has four weeks to deliver its opinion. The Commission can then can adopt a payment decision. Bulgaria has been notified of the reasons why the EC considers two milestones not satisfactorily fulfilled, and it has one month to respond. If, after that, the Commission still considers the milestones not to be completed, it will temporarily withhold part of the payment. The country will then have six months to take the necessary action, after which the remaining part of the payment will be released, the EC said.

Payment to Bulgaria for the already greenlighted milestones and targets can be made after the EFC gives a positive opinion and the EC adopts a payment decision. According to the statement, Bulgaria's Recovery and Resilience Plan includes investment and reform measures financed by EUR 6.17 billion in EU grants.