Bulgaria and Romania must wait as EU defers decision

THE EU:  The European Commission has postponed a decision on whether Bulgaria and Romania are ready to join the EU in 2007 in…

THE EU:  The European Commission has postponed a decision on whether Bulgaria and Romania are ready to join the EU in 2007 in order to give them more time to implement reforms.

It has also warned it could delay the two states' EU accession date unless they address 10 areas of serious concern before the commission publishes a final monitoring report in October.

"The possibility of being ready in 2007 is doable, but it is for the two countries to deliver. At the same time, the European Union needs to deliver a clear signal that it stands ready to honour its commitments," commission president José Manuel Barroso told the European Parliament. "Our approach is based on strict conditionality."

In an eagerly awaited report, the commission outlined serious concerns over corruption, the slow pace of judicial reform and the lack of proper administration systems to disburse EU funds in both countries. However, the report was particularly critical about Bulgaria's failure to tackle organised crime and its chaotic attempt to reform its judiciary, despite clear warnings made by the EU in a report last October.

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"In the areas of police co-operation and the fight against organised crime and of the fight against fraud and corruption, only very limited progress was made, despite the fact that urgent action was requested," it said. "In the area of money laundering, the situation deteriorated substantially."

Bulgaria and Romania were originally supposed to join the EU along with the 10 new member states that joined in May 2004, but their accession was delayed because it was felt they were not ready. Under their accession treaties, Romania and Bulgaria are set to join the EU on January 1st, 2007. However, either state could face a delay of a year if the EU decides they do not meet the entry criteria.

Mr Barroso and enlargement commissioner Olli Rehn both flew to Bucharest last night to explain their decision to defer a final decision on accession until October. Initially, the commission had indicated it would make a final recommendation in May to enable EU leaders to vote at the European Council in June to admit both states.

In recent weeks, Romania and Bulgaria have expressed concerns about the negative impact that a decision to postpone EU accession until January 2008 would have on public opinion. But Romanian prime minister Calin Tariceanu said the report by the commission was positive.

"The commission sends us two main messages: Romania's entry on January 1st, 2007, is fully attainable. Secondly, Romania has made major progress over the last seven months but must keep the pace of reforms and the direction," he said.

The report asked for Bulgaria to address six particular areas of concern, including clear evidence it is investigating and prosecuting organised crime; more effective implementation of laws to fight fraud and corruption; more enforcement of anti-money laundering provisions; and strengthened control for future use of EU structural funds.

The report by the commission also warned that even if both countries were admitted to the EU in January 2007, they could face safeguard clauses - measures designed to encourage states to continue with reforms when they become EU members. For example, a safeguard clause that would mean the decisions of Bulgarian courts would not be recognised throughout the EU until reforms are in place.

Outstanding issues

Areas of serious concern that need urgent action:

Bulgaria

- Set up control systems for disbursement of EU agriculture aid

- Build up facilities to deal with animal by-products from rendering

- Clear evidence of investigating and prosecuting organised crime networks

- More effective implementation of laws to fight fraud and corruption

- More enforcement of anti-money laundering provisions

- Strengthened control for future use of EU structural funds

Romania

- Establish proper agencies for direct payments farmers under CAP

- Set up proper integrated administration and control in agriculture

- Build up facilities to deal with animal by-products from rendering

- Set up interoperable IT systems with EU to allow collection of VAT

Source: European Commission