03.06.2014

Bulgaria's efforts to improve the business environment and to accelerate the absorption of EU funds have been positively assessed in the published today proposals for recommendations of the European Commission to the EU Member States. The recommendations are issued within the framework of the mechanism for enhanced coordination of economic policies within the EU, the so-called European semester. They are based on the EC assessment in respect of the national reform programmes in pursuance of the Europe 2020 Strategy, and the stability programmes and the convergence programmes in pursuance of the strengthened Stability and Growth Pact and in implementation of the prevention and correction of macroeconomic imbalances procedure. Within the European semester for 2014 Bulgaria will respond to 6 recommendations - one less compared to last year. The recommendation for accelerated absorption of EU funds has dropped out as the obvious progress in this field is indisputable.

According to the Commission experts the fiscal policy continues to be consistent with the Stability and Growth Pact criteria and at the same time progress in the social sphere and in particular in the fight against poverty is noted. To ensure sustainability of the pension and health systems in support of fiscal stability it is required to continue the reforms while taking account of the specificities of the labour market, the life expectancy and the health status of the population, EC recommends. The report notes the need for decisive actions to improve the effectiveness of the social systems by better targeting certain target groups when granting disability pensions, social transfers and unemployment benefits.

The analysers stress the education, employment, public procurement and energy fields in the structural reforms so as to improve the competitiveness and sustainably reduce the macroeconomic imbalances. The measures in the education sector should mainly focus on the quality of the knowledge and skills gained and their connection with the needs of the labour market. The guidelines outlined for developing the reform in the energy sector are to scale up the actions in respect of energy efficiency and electricity and gas market liberalization, as well as to guarantee security of supplies. According to the EC the policies in the fields of income and active measures on the labour market should lead to tangible results in reducing structural unemployment.  

The recommendations are to be discussed within a peer review in the framework of the Council Working Committees and then approved at the ECOFIN meeting on 20 June 2014 and finally approved by the European Council on 26-27 June 2014.