EU suspends 480 million euro aid to Bulgaria

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Source: CCTV.com | 07-24-2008 08:32

Bulgarian Prime Minister Sergei Stanishev speaks during a press conference in the town of Varna some 500 kms east from the capital Sofia.(AFP)

The European Union has decided to suspend aid worth more than 480 million euros for Bulgaria because of irregularities in managing funds and corruption.

The European Commission published a series of reports on how Bulgaria has managed EU funds and the country's fight against corruption.

The reports say the funds will not be paid out because Bulgaria has made little progress in reforming its judiciary and fighting organized crime and corruption since it joined the EU 18 months ago.

Johannes Laitenberger, spokesman of the European Commision, said, "The Commission recognizes the efforts taken over recent months by the Bulgarian authorities. Nevertheless it is the Commission's duty to safeguard the financial interests of the European Union. Therefore the Commission has taken the decision today to formalize the suspension of certain payments and to withdraw the accreditation of two government agencies in charge of managing these funds."

The European Commission says it has also taken a formal decision to suspend some infrastructure funding for Bulgaria.

But the Commission says it's prepared to reverse the decisions as soon as Bulgaria takes the necessary measures to improve financial management and tighten controls.

The Commission has also issued similar reports about Romania, which also joined the EU last year. It says the fundamental elements of a functioning system are in place but the foundation is still fragile.

Editor:Zhang Yue