Transcript Slide 1
Latest Development in Bulgarian Economy & Prospectiveness for Cooperation Thessaloniki, 9th November 2005 EU financing to Bulgarian economy Spyros Argyropoulos How far has Bulgaria progressed along the road to Europe? 1993 Association Agreement 1995 AA enters into force 1995 Membership application 1997 Candidate status 2000 Opening negotiations 2004 Closing negotiations 2007 Membership How does Europe assist Bulgaria along the road to Europe? PHARE SAPARD Strengthening public institutions to function effectively inside EU Accelerating sustainable agriculture and rural development Promoting convergence with EU legislation (acquis communautaire) Assisting long-term adjustment of agriculture and rural areas development Promoting Economic and Social Cohesion Assisting long-term adjustment of agriculture and rural areas development ISPA Assisting infrastructure investments in EU priority fields of environment and transport Accelerating sector and policy reforms in the infrastructure sector Financial allocations by programmes 2000-2004 PHARE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 30% Institutional Building 70% Investment in acquis and ESC, including CBC programmes ISPA 2000 2001 PHARE 2002 SAPARD 2003 2004 ISPA 50% Transport 50% Environment Phare CBC programmes in Bulgaria CBC Bulgaria – Romania (since 1999) 8 M€/year CBC Bulgaria – SCG (since 2004); 2-4 M€/year CBC Bulgaria – FYROM (since 2004); 2-4 M€/year CBC Bulgaria – Greece (since 1994) 20 M€/year CBC Bulgaria – Turkey (since 2003) 3-7 M€/year Increase in EU appropriations for 2004-2006 … 250 200 150 100 50 0 PHARE SAPARD ISPA 2004 (m€) 2005 (m€) 2006 (m€) 203 220 237 68 73 73 135 147 158 … but less forgiving EU political climate Bulgaria hopes to enter EU in 2007 Safety clauses that could delay the entry till 2008 concentrate on: Justice, Environment, Home affairs October 2005 EC Monitoring Report did not spread much light on the final entry date but the final decision will be taken in 2006 Further efforts are needed to address certain shortcomings: increase food safety; reinforce the structures and mechanisms for participation in EU structural funds; tackle industrial pollution; organised crime more effectively. From pre-accession to structural funds (2007-2013) PHARE ESF, ERDF SAPARD EARDF under CAP ISPA Cohesion Fund STRUCTURAL FUNDS: ESF – employment and human resources development ERDF – productive investment and economic infrastructure CF – transport & environment infrastructure and energy efficiency Financial framework for Bulgaria 2007-2009 Agriculture 1,552 mEUR Structural actions 2,3 mEUR EC Internal Policies 268 mEUR Administration 116 mEUR Schengen and Cash-flow Facilities 240 mEUR Bulgaria Total sum –% of GDP Total appropriations for commitment - % of GDP 25 7.00% 6.00% 20 5.00% 15 4.00% 10 3.00% 2.00% 5 1.00% 0 0.00% BG RO LV LT EE SK PL MT HU Maximum appropriations for commitments (mEUR) Bulgaria, Romania (2007-2009) as compared to EU new member states (2004-2006) CZ CY % of GDP Sl New FDI data are also encouraging 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 FDI 2002 2003 EU accession assistance 2004 … … but policy challenges remains It is crucial that Bulgaria takes immediate and decisive action to address issues of serious concern if it is to be ready by the envisaged date of accession: strengthen the rule of law improving public administration and the justice system fighting corruption effectively Overview Where we’ve come from Where we are now lost years culminating in 1996 crisis strong performance since 1997 strong growth despite weak world demand tight fiscal policy, some delays on structural reform credit boom and current account deficit pose policy challenge Where we’re going EU accession: real and nominal convergence Preservation of currency board up to EMU Precautionary program with the IMF For contacts BB&T Ltd. is independent management consultancy company, operating in Bulgaria and internationally. The company has proven experience of delivering complex and multi-disciplinary projects. Its broad and in-depth expertise fully embraces both private and public sector, being able to bring clients and projects the most appropriate mix of skills and experience. 101, G. S. Rakovski Str., Fl. 1 1000 Sofia / Bulgaria Phone: (+359 2) 9230080 Fax: (+359 2) 9230089 E-mail: [email protected] BB&T provide services at most stages of project cycle: identification, feasibility, operational and technical follow-up, technical advice and support, information and communication, monitoring; as well as studies and research with the emphasis on industrial and commercial development, regional and local economic development strategies and local employment initiatives.