Proposal for a Council Decision on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Bulgaria
Date: 2001-11-13
Institutions: European Commission
Subjects: Bulgaria, European Union, accession to the European Union, aid system, cooperation policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.11.2001
COM(2001) 651 final

Proposal for a

COUNCIL DECISION

on the principles, priorities, intermediate objectives and conditions contained in the
Accession Partnership with Bulgaria

(presented by the Commission)

EXPLANATORY MEMORANDUM

At  its  meeting  in  Luxembourg  in  December  1997,  the  European  Council  decided  that  the
Accession  Partnership  would  be  the  key  feature  of  the  enhanced  pre-accession  strategy,
mobilising all forms  of  assistance  to  the  candidate  countries  within  a  single  framework.    In
this  manner,  the  Community  targets  its  assistance  towards  the  specific  needs  of  each
candidate  so  as  to  provide  support  for  overcoming  particular  problems  with  a  view  to
accession.

The  first  Accession  Partnership  for  Bulgaria  was  decided  in  March  1998.    In  line  with  the
provisions laid down in Regulation (EC) No. 622/981 (article 2), the Partnership was updated
a first time in December 1999, taking into account further developments in Bulgaria.  Based
on  the  analysis  of  the  Commission's  2001  Regular  Report  on  progress  made  by  Bulgaria
towards accession, the Commission considers that the time has come for a further revision of
the priorities and intermediate objectives identified in the Accession Partnership.  The present
proposal for such a revision draws on the findings of the Commission's 2001 Regular Report
on progress made by Bulgaria towards accession.

The attached decision does not have financial implications.

In view of the above, the Commission invites the Council to adopt the attached decision.

1 

OJ L 85, 20.3.1998, p. 1

2

                                                
Proposal for a

COUNCIL DECISION

on the principles, priorities, intermediate objectives and conditions contained in the
Accession Partnership with Bulgaria

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 622/98 of 16 March 1998 on assistance to the
applicant  States  in  the  framework  of  the  pre-accession  strategy,  and  in  particular  on  the
establishment of Accession Partnerships,2 and in particular to Article 2 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

The  Luxembourg  European  Council  stated  that  the  Accession  Partnership  is  a  new
instrument and the key feature of the enhanced pre-accession strategy;

Regulation  (EC)  No  622/98  sets  out  that  the  Council  is  to  decide,  by  a  qualified
majority and following a proposal from the Commission, on the principles, priorities,
intermediate  objectives  and  conditions  contained  in  the  individual  Accession
Partnerships,  as  they  are  submitted  to  each  applicant State, as  well  as  on  subsequent
significant adjustments applicable to them;

Community  assistance  is  conditional  on  the  fulfilment  of  essential  elements,  and  in
particular on the respect of the commitments contained in the Europe Agreements and
on progress towards fulfilment of the Copenhagen criteria; where an essential element
is  lacking,  the  Council,  acting  by  a  qualified  majority  on  a  proposal  from  the
Commission, may take appropriate steps with regard to any pre-accession assistance;

The Luxembourg European Council decided that the implementation of the Accession
Partnership  and  progress  in  adopting  the  acquis  will  be  examined  in  the  Europe
Agreement bodies;

The  2001  Commission's  Regular  Report  presents  an  objective  analysis  on  Bulgaria's
preparations for membership and identifies a number of priority areas for further work;

In  order  to  prepare  for  membership,  Bulgaria  should  continue  to  update  its  national
programme for the adoption of the acquis; this programme should set out a timetable
for  achieving  the  priorities  and  intermediate  objectives  established  in  the  Accession
Partnership;

2 

OJ L 85, 20.3.1998, p. 1

3

                                                
(7) 

Bulgaria  needs  to  ensure  that  the  appropriate  legal  and  administrative  structures
needed for the programming, coordination, management, control and evaluation of EC
pre-accession funds are in place;

HAS DECIDED AS FOLLOWS:

Article 1

In  accordance  with  Article  2  of  Regulation  (EC)  No  622/98,  the  principles,  priorities,
intermediate objectives and conditions in the Accession Partnership for Bulgaria are set out in
the Annex hereto, which forms an integral part of this Decision.

The implementation of the Accession Partnership shall be examined in the Europe Agreement
bodies and by the appropriate Council bodies to which the Commission shall report regularly.

Article 2

Article 3

This Decision shall take effect on the third day following that of its publication in the Official
Journal of the European Communities.

Done at Brussels,

For the Council
The President

4

ANNEX

1. 

INTRODUCTION

At  its  meeting  in  Luxembourg  in  December  1997,  the  European  Council  decided  that  the
Accession  Partnership  would  be  the  key  feature  of  the  enhanced  pre-accession  strategy,
mobilising al forms of assistance to the candidate countries within a single framework.  In this
manner, the Community targets its assistance towards the specific needs of each candidate so
as to provide support for overcoming particular problems with a view to accession.

The first Accession Partnership for Bulgaria was decided in March 1998.  As provided for in
Regulation (EC) No. 622/98 (article 2), the Accession Partnership was updated a first time in
December 1999, taking into account further developments in Bulgaria.  The present revision
is based on a proposal by the Commission following consultation with Bulgaria, and draws on
the analysis of the Commission's 2001 Regular Report on progress made by Bulgaria towards
accession.

2. 

OBJECTIVES

The purpose of the Accession Partnership is to set out in a single framework the priority areas
for further work identified in the Commission’s 2001 Regular Reports on the progress made
by Bulgaria towards membership of the Union, the financial means available to help Bulgaria
implement  these  priorities  and  the  conditions  which  will  apply  to  that  assistance.  The
Accession  Partnership  provides  the  basis  for  a  number  of  policy  instruments  which  will  be
used to help  the  candidate  States  in  their  preparations for membership.   These  include  inter
alia the updated National Programme for the Adoption of the  Acquis prepared by Bulgaria,
the pre-accession fiscal surveillance procedure, the Pre-accession Economic Programme, the
Pre-accession pact on organised crime as well as the National Development Plans, the Rural
Developments Plans, a national employment strategy in line with the European Employment
Strategy,  and  sectoral  plans  necessary  for  the  participation  in  the  Structural  Funds  after
membership  and  for  the  implementation  of  ISPA  and  SAPARD  before  accession.    Each  of
these instruments is different in nature and is prepared and implemented according to specific
procedures and may be supported by pre-accession aid.  They are not an integral part of this
Partnership but the priorities they contain will be compatible with it.

3. 

PRINCIPLES

The main priority areas identified for each candidate State relate to their ability to take on the
obligations of meeting the Copenhagen criteria which state that membership requires:

(cid:1) 

(cid:1) 

(cid:1) 

that the candidate State has achieved stability of institutions guaranteeing democracy, the
rule of law, human rights and respect for and protection of minorities;

the  existence  of  a  functioning  market  economy,  as  well  as  the  capacity  to  cope  with
competitive pressure and market forces within the Union;

the ability to take on the obligations of  membership, including  adherence to  the  aims of
political, economic and monetary union.

5

At its meeting in Madrid in 1995, the European Council stressed the need  for the candidate
States to adjust their administrative structures to ensure harmonious operation of Community
policies  after  accession  and  at  Luxembourg,  in  1997,  it  stressed  that  incorporation  of  the
acquis into legislation is necessary, but not in itself sufficient; it is necessary to ensure that it
is  actually  applied.    The  Feira  and  Gothenburg  European  Councils  in  2000  and  2001
respectively confirmed the vital importance of the applicant countries’ capacity to implement
and  enforce  the  acquis,  and  added  that  this  required  important  efforts  by  the  applicants  in
strengthening and reforming their administrative and judicial structures.

4. 

PRIORITIES AND INTERMEDIATE OBJECTIVES

The Commission’s Regular Reports have highlighted, besides the progress already made, the
extent of the efforts which still have to be made in certain areas by candidate States to prepare
for  accession.    This  situation  requires  the  definition  of  intermediate  stages  in  terms  of
priorities,  each  to  be  accompanied  by  precise  objectives  to  be  set  in  collaboration  with  the
states  concerned,  the  achievement  of  which  will  condition  the  degree  of  assistance  granted
and  the  progress  of  the  negotiations  under  way  with  Bulgaria.    The  priorities  listed  in  the
revised Accession Partnership have been selected on the basis that it is realistic to expect that
Bulgaria  can  complete  or  take  them  substantially  forward  over  the  next  two  years  (2002  –
2003).  Within this list, issues that require particularly urgent action have been highlighted as
such.    The  progress  made  in  meeting  the  priorities  of  the  1999  Accession  Partnership  is
assessed  in  the  2001  Regular  Report.    This  assessment  has  been  used  in  formulating  the
priorities for the current Partnership.

Bulgaria  submitted  an  updated  version  of  its  National  programme  for  the  Adoption  of  the
Acquis (NPAA) on 2 July 2001.  The NPAA sets out a timetable for achieving priorities and
intermediate  objectives,  based  on  the  1999  Accession  Partnership,  as  well  as  necessary
administrative structures and financial resources.

indicates 

the  priority  areas  for  Bulgaria’s  membership
The  Accession  Partnership 
preparations.    Bulgaria  will  nevertheless  have  to  address  all  issues  identified  in  the  2001
Regular  Report.    It  is  also  important  that  Bulgaria  fulfils  the  commitments  of  legislative
approximation  and  the  implementation  of  the  acquis  in  accordance  with  the  commitments
made under the Europe Agreement, and in the context of the negotiation process.  It should be
recalled that incorporation of the acquis into legislation is not in itself sufficient; it will also
be necessary to ensure that it is actually applied to the same standards as those which apply
within  the  Union.  In  all  of  the  areas  listed  below  there  is  a  need  for  credible  and  effective
implementation and enforcement of the acquis.

Drawing  on  the  analysis  of  the  Commission’s  Regular  Report,  the  following  priorities  and
intermediate  objectives  have  been  identified  for  Bulgaria.    These  priorities  are  presented  in
accordance with the structure of the Regular Report.3

Political criteria

Democracy and the rule of law

–  Continue 

to  make  progress  with  public  administration  reform.  Ensure  effective
implementation of the provisions of Civil Service Act and related regulations. Take steps

3 

The order of presentation is that used in the 2000 Regular Report.

6

                                                
to ensure accountability, openness and transparency of public service. Strengthen capacity
for  strategic  planning,  policy  analysis  and  evaluation  at  the  centre  of  government  and  in
line  ministries  and  improve  quality  of  consultation  with  affected  parties  (e.g.  social  and
economic partners, civil society, and private sector) on preparation of new legislation.

–  In need of particularly urgent action: Start to implement the strategy  for reform of the

judicial system, paying particular attention to:

–  Strengthening  the  administrative  capacity  of  key  institutions;  Supreme  Judicial
Council  and  Ministry  of  Justice,  through  building  budgetary,  supervisory,
planning and human resource management capacity.

–  Clarifying the immunity of members of the judiciary to ensure this is in line with

international requirements.

–  Ensuring  the  full  implementation  of  fundamental  rights  in  penal  cases  such  as

legal aid.

–  In need of particularly urgent action: Start to implement the national strategy to combat
corruption  in  public  life,  especially  focussing  on  awareness  building,  prevention  and  the
prosecution of corrupt acts.

Human rights and the protection of minorities

–  Ensure that an effective system for redressing police misconduct is established.

–  Continue  to  implement  the  Roma  Framework  Programme  with  particular  attention  to
providing necessary financial support, significant strengthening of the National Council of
Ethnic and Demographic Issues, and ensuring equal access to health, education and social
security.

–  Adopt and implement secondary legislation necessary for the effective functioning of the
Child  Protection  Act.  Ensure  further  measures  are  taken  to  improve  community  care
services for children. Ensure the full implementation of the UN Convention on the Rights
of the Child.

Economic criteria

–  Maintain  macro-economic  stability  and  continue  to  promote  economic  growth  and
competitiveness  through  further  market-based  enterprise  restructuring  and  promotion  of
private sector development.

–  Take  measures  to  improve  the  functioning  of  the  financial  sector  and  in  particular  to

strengthen  the banking sector.

–  Continue  the  privatisation  process  in  such  a  way  that  the  privatised  companies  can  be

restructured and can grow.

–  Make progress on restructuring  of  the energy  sector.  Develop  and  start to implement an

energy efficiency strategy and  aim to attract increased investment.

–  Ensure that the steel sector is restructured on a viable basis, and  receives no further state

aid incompatible with EC state aid rules for the steel sector.

7

–  Further  improve  and  accelerate  bankruptcy  and  liquidation  procedures,  reduce  the  time

needed to complete procedures and improve enforcement of decisions.

–  Establish a functioning land market and finalise the land and property register.

–  Take  further  measures  to  improve  the  business  environment  and  stimulate  domestic  and
inward  investments.  Ensure  business-friendly  legal,  tax,  regulatory  and  administrative
frameworks  (including  improved  contract  enforcement  and  licensing  procedures)  that
provide a level playing field for all businesses.

–  Develop  a  more  favourable  business  environment  for  SMEs  through  addressing  the
remaining obstacles to SME development including lack of business expertise among SME
managers, and  access to finance on appropriate terms.

Ability to assume the obligations of membership

Free movement of goods

–  Modify  the  framework  law  on  technical  requirements  implementing  New  and  Global

Approach principles to ensure it is in line with the acquis.

–  Reinforce  horizontal  administrative  infrastructure  and  separation  of  standardisation  and
certification  functions.  Implement  New  Approach  directives  on  the  basis  of  modified
framework  legislation  and  reinforcement  of  related  administrative  capacity  (conformity
assessment bodies and laboratories). Speed up the adoption of EN harmonised standards.

–  Pursue  alignment  of  traditional  sectoral  legislation  notably  in  the  pharmaceuticals,
chemicals,  foodstuffs  and  motor  vehicles  sectors.  Reinforce  market  surveillance  systems
and prepare administration and food operators for EC principles of food safety.

–  Adopt  and  enforce  amendments  to  public  procurement  legislation  to  ensure  correct
application and full compatibility with the acquis. Ensure transparent public procurement
procedures at central and regional levels.

(cid:2)  Proceed  with  screening  of  legislation  in  the  non-harmonised  area  to  ensure  that  it  is  in
compliance  with  Articles  28-30  of  the  EC  Treaty  and  complete  administrative
arrangements for the future monitoring in this area.

Free movement of persons

–  Continue  to  pursue  alignment  of  mutual  recognition  of  professional  qualifications  and
diplomas  and  introduce  required  administrative  structures,  education  and  training
programmes.

Freedom to provide services

–  Reinforce supervision of financial services.

–  Adopt and implement national legislation and establish an independent public supervisory
authority responsible for monitoring the correct application of Data Protection provisions.

Free movement of capital

8

–  Take further steps to prevent use of financial system for money laundering. Strengthen the
capacity of the Financial Intelligence Bureau to deal with money laundering and to  ensure
that all relevant professions co-operate with it.

–  Ensure compliance with the Recommendations of the Financial Action Task Force.

Company law

–  Upgrade accounting and auditing standards and practices, and further align the regulatory

framework with the acquis.

–  In  need  of  particular  urgent  action:  Enhance  the  enforcement  of  industrial  and
intellectual property rights, with the emphasis on the fight against piracy and counterfeiting
and  strengthening  border  control  measures.  Improve  co-operation  among  enforcement
bodies; intensify training for enforcement bodies including judges and prosecutors.

Competition policy

–  Complete  the  legislative  framework  in  both  anti-trust  and  state  aid;  strengthen
administrative capacity (particularly for state aid control); ensure full enforcement of anti-
trust  and  state  aid  rules;  maintain  a  comprehensive  state  aid  inventory  and  prepare  a
comprehensive annual state aid report; increase awareness of anti-trust and state aid rules
among market participants and aid granters; intensify training of the judiciary in anti-trust
and state aid matters.

Agriculture

–  Prepare the administrative structures needed for the design, implementation, management,

monitoring, control and evaluation of EC funded rural development programmes.

–  Up-grade  the  capacity  of  the  agricultural  administration  for  the  practical  implementation
and enforcement of the  management  mechanisms  of  the Common  Agricultural  Policy, in
particular the Integrated Administration and Control System and the Paying Agency for the
management of Common Agricultural Policy funds.

–  Put in place the necessary conditions for the emergence and strengthening of efficient land,

labour and capital markets in the rural and agricultural sectors.

–  Continue the upgrading of food processing establishments so that they are in a position to

respect EC food safety standards.

–  Continue the reinforcement of the food control administration.

–  Continue preparation of the vineyard register.

–  Continue  alignment  of  veterinary  and  phytosanitary  legislation  and  upgrade  inspection

arrangements, in particular at future external borders.

Fisheries

–  Complete the establishment of the adequate organisation, adequate institutional resources
and equipment relating to inspection and controls at central and regional levels; complete
the fishing vessel register in full compliance with EC requirements.

9

Transport policy

-  Continue  legal  alignment  and  reinforce  administrative  capacity  in  road  transport
especially  on  adaptation  of  the  fleet  to  technical  and  safety  requirements  and
charging/taxation.

-  Continue legal alignment and reinforce administrative capacity in railway transport with a
view  to  the  implementation  of  the  revised  railway  acquis.  Pursue  the  restructuring  of
Bulgarian railways.

-  Continue  to  align  and  implement  maritime  transport  legislation,  in  particular  the
strengthening of administrative capacity in order to improve the Flag State performance in
the field of maritime safety.

Taxation

–  Continue alignment of VAT legislation, with particular regard to exempt transactions, right
of  deduction  and  special  schemes.  Align  gradually  legislation  on  excise  duties,  with
particular regard to the applied rates.

–  Ensure  that  existing  and  future  legislation  complies  with  the  principles  of  the  Code  of

Conduct for Business Taxation.

–  Continue  to  modernise  and  strengthen  tax  administration  to  ensure  laws  are  effectively
implemented  and  enforced,  particularly  for  revenue  collection  and  administrative  co-
operation and mutual assistance.

–   Develop IT systems so as to allow for the exchange of electronic data with the Community

and its Member States.

Statistics

–  Further improve quality and coverage of statistics; ensure adequate resources are available

to further strengthen statistical capacities, including at regional level.

Employment and social policy

–  Continue  alignment  of  the  social  acquis,  in particular  on  equal  treatment  for  women  and
men  and  health  and  safety  at  work  and  develop  implementation  capacity  including  the
strengthening  of  the  labour  inspectorates.  Adopt  legislation  against  discrimination  and
develop a timetable for its implementation.

–  Continue alignment of legislative framework and develop implementation capacity for the
acquis on public health; accelerate the development of measures in the area of surveillance
and control of communicable diseases and health monitoring and information.

–  Continue to support social partners' capacity-building efforts, in particular with a view to
their  future  role  in  the  elaboration  and  implementation  of  EU  employment  and  social
policy,  including  the  European  Social  Fund  and  foster  structured  involvement  of  social
partners, notably through autonomous bipartite social dialogue.

–  Prepare a national strategy, including data collection, with a view to future participation in

the European strategy on social inclusion.

10

Energy

–  Prepare,  as  a  matter  of  urgency,  a  new  energy  strategy  paying  particular  attention  to  the
need  to  improve  energy  efficiency  (and  to  implement  a  strong  policy  of  demand-side
management) and to revise energy demand forecasts on the basis of more realistic growth
and  energy  intensity  scenarios.  This  should  take  into  account  the  commitments  of  the
Understanding of 1999 on Kozloduy Nuclear Power Plant.

–  Implement the commitment made in the Understanding of 1999 to close down definitively
Units 1 and  2  of  the Kozloduy Nuclear Power Plant before the  year  2003,  and  decide  in
2002, in agreement with the Commission, on the dates for early closure of Units 3 and 4.
The Commission’s understanding is that the definitive closure date for Units 3 and 4 will
be 2006 at the latest.

–  Implement the recommendations contained in the Council report on “Nuclear Safety in the

Context of Enlargement” with due regard to the priorities assigned in the report.

–  Focus  on  strengthening  the  independence,  resources  and  capacities  of  the  national

regulatory authority for nuclear energy.

–  Continue to ensure a high level of nuclear safety at Units 5 and 6 of the Kozloduy Nuclear
Power Plant and maintain a high level of nuclear safety throughout the decommissioning
phases of Units 1-4.

–  In need of particularly urgent action:  Adopt the  framework law and  timetable to meet

oil stocks requirement acquis.

–  Improve management of radioactive waste.

–  Start  to  implement  energy  efficiency  measures  and  step  up  the  use  of  renewable  energy.

Ensure the Energy Efficiency Agency is adequately resourced.

–  Put  in  place  transparent  market  rules  with  a  clear  schedule  for  opening  the  market  to
competition.  Enhance  role  of  State  Energy  Regulatory  Commission  in  enforcement  of
these rules. Complete the restructuring of the solid fuels sector.

–    Make  preparations  for  participation  in  the  internal  market  for  electricity  and  for  natural
gas  including  with  regard  to  alignment;  create  an  independent  transmission  system
operator (electricity); eliminate remaining price distortions; strengthen the sector regulator,
and adopt timetables for market opening.

Industrial policy

–  Develop  and  implement  a  market-oriented  competitiveness  strategy  including  sectoral

strategies as appropriate.

Telecommunications and information technologies

–  Complete the transposition of the acquis.

–  Ensure independence of the bodies concerned with regulation (State Telecommunications
Commission,  Postal  Regulator  and  ministry)  from  operational  activities  and  strengthen

11

their  capacity  in  preparation  for  planned  full  liberalisation  of  these  sectors  by  1  January
2003.

Culture and Audio-visual policy

–  Strengthen  the  administrative  capacity  of  the  national  regulatory  body  in  the  field  of

broadcasting.

Regional policy and co-ordination of structural instruments

–  Strengthen  administrative  capacity  in  key  ministries,  particularly  at  the  central  level,  to
design  strategies  and  to  implement  and  evaluate  projects  for  regional  development  and
economic and social cohesion, financed by EC and national funds.

–  Prepare  a  coherent  development  plan  as  required  by  the  Structural  Funds  regulations.
Integrate it into the national budgetary and policy-making framework so that it serves as an
integrated and operational development tool.

–  Clarify  the  proposed  institutional  arrangements  for  managing  structural  funds  after
accession, including appropriate control, monitoring and evaluation mechanisms and start
to build the necessary administrative structures consistent with these arrangements.

–  Prepare to comply with basic financial management and control provisions as laid down by

the respective regulations of the Structural Funds.

  Environment

–  Continue  transposition  of  the  acquis  with  particular  emphasis  on  environmental  impact
assessment,  air  quality,  waste  management,  water  quality,  nature  protection,  industrial
pollution control and risk management, and radiation protection.

–  Continue implementation of the acquis with particular emphasis on environmental impact
assessment,  air  quality,  waste  management,  water  quality,  nature  protection,  industrial
pollution control and risk management, and radiation protection.  Continue preparation and
development  of  directive-specific  implementation  plans,  including  financing  plans,  with
particular  emphasis  on  waste  management  (including  waste  management  plans),  water
quality and nature protection, and start implementation.

–  Continue  strengthening  administrative,  monitoring  and  enforcement  capacity  at  national
and  regional  levels.  Particular  attention  should  be  given  to  the  strengthening  of  the
Ministry of Environment and Water as well as Regional Inspectorates in relation to waste
management and nature protection.

–  Continue  integration  of  environmental  protection  requirements  into  the  definition  and
implementation  of  all  other  sectoral  policies  with  a  view  to  promoting  sustainable
development.

Consumers and health protection

–  Continue alignment of legislation and take steps to ensure effective implementation of the
Consumer  Protection  Act,  in  particular  through  an  independent  and  efficient  market
surveillance mechanism.

Co-operation in the fields of justice and home affairs

12

–  Submit a Schengen Action Plan.

–  Continue to upgrade and modernise infrastructure at the future EU external borders.

–  Bring  the  current  Refugees  Act  in  line  with  the  relevant  acquis  and  assure  its  proper

implementation.

–  Improve  the  internal  co-operation  within  the  police  and  with  other  law  enforcement
agencies  and  with  the  judiciary  in  particular  to  strengthen  capacities  to  fight  organised
crime.

–  Update  and  implement  an  integrated  strategy  for  the  fight  against  organised  crime,  from
prevention to prosecution, in collaboration between the Ministry of Justice, the Ministry of
Interior and any other concerned agency.

–  Develop a national drugs strategy and strengthen the administrative capacity of and the co-

ordination among bodies involved in its implementation.

–  Take the necessary steps in order to ensure the implementation of Community instruments

in the area of judicial co-operation in civil matters.

–  Take the necessary steps to align the legislation with the Convention on the Protection of

the Communities’ Financial Interests and its Protocols.

Customs union

–  Fully  implement  the  Bulgarian  customs  code  and  its  implementing  provisions,  guarantee
the  stability  and  strengthen  the  administrative  and  operational  capacity  of  the  customs
administration to enable it to enforce legislation and improve co-operation with other law
enforcement bodies.  Continue to upgrade infrastructure at borders.

–  In need of particularly urgent action: continue the implementation of the IT strategy of
the Bulgarian customs administration. Develop IT systems so as to allow for the exchange
of computerised data between the EC and Bulgaria.

–  Continue serious efforts to implement the customs ethics policy.

Financial control

–  Implement  the  new  legislative  framework  on  public  internal  financial  control  and
strengthen  the  administrative  capacity  and  the  functional  independence  of  the  relevant
institutions.

–  Implement the framework for systems based and performance audits; develop a culture  of

managerial accountability.

–  Develop coherent and comprehensive standards for external audit supported by appropriate

methodology and manuals; strengthen the capacity of the National Audit Office.

–  In  need  of  particularly  urgent  action:  complete  the  legislative  framework  for  external

audit.

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–  Designate  a  contact  point  for  the  protection  of  the  Communities’  financial  interests  and

start effective co-operation with OLAF through this contact point.

–  Strengthen the fight against fraud.

–  Step  up  efforts  to  ensure  the  correct  use,  control,  monitoring  and  evaluation  of  EC  pre-
accession funding as a key indicator of Bulgaria's ability to implement the financial control
acquis.

5. 

PROGRAMMING

  For  the  period  2000-2006,  in  addition  to  Phare,  financial  assistance  to  Bulgaria  comprises
support  for  pre-accession  measures  for  agriculture  and  rural  development  through  the  pre-
accession instrument SAPARD (Council Regulation (EC) No 1268/99, OJ L 161, 26.6.1999,
p.87);  and  support  for  infrastructure  projects  in  the  fields  of  environment  and  transport
through  the  structural  instrument  ISPA  (Council  Regulation  (EC)  No  1267/99,  OJ  L  161,
26.6.1999,  p.  73),  which  gives  priority  to  measures  similar  to  the  cohesion  fund  in  the  pre-
accession  period.    Under  these  national  allocations,  Bulgaria  can  also  fund  part  of  its
participation 
the  Research  and  Technological
Development  Framework  Programmes  and  programmes  in  the  areas  of  Education  and
Enterprise.    In  addition  Bulgaria  will  have  access  to  funding  from  multi-country  and
horizontal programmes directly related to the acquis.  Joint financing by the applicant States
is systematically required for all investment projects.  Since 1998 the Commission has worked
with the European Investment Bank and the International Financial Institutions, in particular
the European Bank for Reconstruction and Development and the World Bank, with a view to
facilitating the co-financing of projects relating to pre-accession priorities.

in  community  programmes 

including 

6. 

CONDITIONALITY

Community  assistance  for  financing  projects  through  the  three  pre-accession  instruments
Phare, ISPA and SAPARD is conditional on respect by Bulgaria of its commitments under the
Europe Agreement, further steps towards satisfying the Copenhagen criteria and in particular
progress  in  meeting  the  specific  priorities  of  this  revised  Accession  Partnership.    Failure  to
respect these general conditions could lead to a decision by the Council on the suspension of
financial assistance on the basis of Article 4 of Regulation (EC) No 622/98.

7. 

MONITORING

The  implementation  of  the  Accession  Partnership  is  monitored  in  the  framework  of  the
Europe Agreement.  As underlined by the European Council in Luxembourg, it is important
that the institutions of the Europe Agreement continue to be the framework within which the
adoption  and  implementation  of  the  acquis  can  be  examined.    The  relevant  sections  of  the
Accession  Partnership  are  discussed  in  the  appropriate  sub-committee.    The  Association
the
Committee  discusses  overall  developments,  progress  and  problems 
Partnership’s priorities and intermediate objectives as well as more specific issues referred to
it from the sub-committees.

in  meeting 

The  PHARE  Management  Committee  ensures  that  actions  financed  under  all  three  pre-
accession instruments, PHARE, ISPA, and SAPARD, are compatible with each other as well

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as  with  the  Accession  Partnerships  as  laid  down  in  the  Co-ordinating  Regulation  (Council
Regulation (EC) No 1266/99, OJ L 161, 26.6.1999, p. 68).

The  Accession  Partnership  will  continue  to  be  amended  as  necessary  in  accordance  with
Article 2 of Regulation (EC) No 622/98.

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