23 Jul 2008
EU freezes funds to Bulgaria due to corruption
The European Union froze millions of euros of aid to Bulgaria today after reports showed widespread fraud and ineffective management had caused massive waste of EU funds in the newly admitted country.
The move, which many EU lawmakers saw as necessary, calls into question whether or not Bulgaria and Romania were admitted two early. The precedent will also complicate the adhesion of other Eastern European countries currently struggling with corruption like Croatia.
Although action has so far only been taken against Bulgaria, reports have shown Romania is also in the doghouse.
The commission also issued a critical report on Romania, where, it said, 70 cases of suspected fraud involving EU funds had been opened between June 2007 and March 2008.
Bulgaria and Romania were admitted to the EU in January 2007, despite serious doubts about their readiness. Because EU heads of government had already given the two nations firm membership commitments, the only option was to delay accession by another year – something policy makers believed would be counterproductive[. . .]
In the meantime, support for EU plans to expand membership is ebbing. According to a Eurobarometer poll conducted in October and November 2007 across the EU, 46 percent supported further enlargement, 3 percent lower than in spring 2007.
The stakes are high for Bulgaria, which is slated to receive €6.85 billion from EU structural funds in the 2007-13 budget. The report highlights the risk that some of this will be siphoned off illegally.