Brussels, 25/11/2008 (Agence Europe) - Bulgaria has once and for all lost €220 million in pre-accession aid that was reserved for it under the PHARE programme (assistance in development of infrastructure and institution- and administration building), because Sofia has not taken all the measures required for ensuring the correct use of funding, it was announced by the spokesperson for Commissioner Olli Rehn (enlargement) on Tuesday 25 November. On 23 July this year, the Commission, justifying its action by irregularities and fraud on the part of Bulgaria, had suspended €560 million from the PHARE programme and withdrawn the accreditation granted to two government agencies responsible for managing pre-accession funds.
After an “in-depth analysis” of the current situation, the Commission has decided to keep the suspension in place saying that measures taken by the Bulgarian government since July have been insufficient to dissipate fears that the money would be ill used. This has had the direct consequence that €220 million under the PHARE programme have been definitively withdrawn given that the deadline for signing the contracts of engagement are to expire on 30 November. The payment of the remaining €340 million from PHARE, already contracted, remains suspended. The €36 million in pre-accession aid foreseen in the Transition Facility also remain suspended (deadline for the signing the engagement contracts expires at the end of 2009). “What we are doing is seeking to protect the financial interests of European taxpayers, including Bulgarian taxpayers. It is not acceptable for the money to be used incorrectly”, the Commission states, noting that this is the first time an EU country thus sees itself deprived of European funds. (H.B./transl.jl)