Proposal for a Council Decision on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Bulgaria
Date: 2003-03-26
Institutions: European Commission
Subjects: Bulgaria, Community acquis, EU aid, European integration, accession criteria, accession to the European Union, approximation of laws, cooperation policy, pre-accession strategy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.3.2003
COM(2003) 142 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  Accession  Partnership
was updated a first time in December 1999, and  for a second time in January 20022,  taking
into  account  further  developments  in  Bulgaria.  In  the  Commission's  Communication  on
Roadmap for Bulgaria3, it was stated that the Commission would propose revised Accession
Partnerships  for  Bulgaria  in  the  light  of  the  findings  of  the  2002  Regular  Reports  and
roadmap. The Communication also stated that short and medium term issues identified in the
roadmap  would  be  further  developed  in  the  revised  Accession  Partnership  to  be  presented
next year, and that the Accession Partnership would continue to be the basis for programming
pre-accession  assistance,  but  that  priorities  for  assistance  would  also  be  drawn  from  the
Regular  Reports,  roadmap  and  revised  National  Development  Plans  to  be  prepared  by  each
country  in  line  with  Structural  Funds  requirements.  It  was  stated  that  the  Accession
Partnership  would  complement  the  roadmap  and,  taken  together,  would  be  the  main  tools
guiding Bulgaria’s work on preparation for accession to the EU.

The attached decision does not have financial implications.

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

1 OJL85,20-3-1998,p.1
2  Council  Decision  of  28  January  2002  on  the  principles,  priorities,  intermediate  objectives  and  conditions

contained in the Accession Partnership with Bulgaria OJ L 044 , 14/02/2002 P. 0001 - 0011

3 COM(2002)624

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 Partnerships4, and in particular to Article 2 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) 

(2) 

(3) 

(4) 

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

The  Copenhagen  European  Council  stated  that  following  the  conclusions  of  the
European  Council  in  Brussels  and  depending  on  further  progress  in  complying  with
the  membership  criteria,  the  objective  is  to  welcome  Bulgaria  as  a  member  of  the
European  Union in  2007.  It  endorsed  the  Commission’s  communication  on  roadmap
for  Bulgaria5,  including  the  proposals  for  a  significant  increase  in  pre-accession
assistance,  and  stated  that  the  high  level  of  funding  to  be  made  available  should  be
used in a flexible way, targeting the priorities identified, including in key areas such as
Justice and Home Affairs. It stated that further guidance in pre-accession work would
be provided by the revised Accession Partnerships to be presented to them next year.

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;

4 OJL85,20/3/1998,p.1
5 COM(2002)624

3

                                                
(5) 

(6) 

(7) 

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  2002  Commission's  Regular  Report  presents  an  objective  analysis  on  Bulgaria's
preparations for membership and identifies a number of priority areas for further work;

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.

Article 2

The implementation of the Accession Partnership shall be examined in the Europe Agreement
bodies  and  by  the  appropriate  Council  bodies  on  the  basis  of  regular  reports  by  the
Commission to the Council.

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

Article 3

Done at Brussels,

For the Council
The President

4

1.

Introduction

ANNEX

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. As provided for in
Regulation (EC) No. 622/98 (article 2), the Accession Partnership was updated a first time in
December  1999,  and  for  a  second  time  in  January  20026,  taking  into  account  further
developments in Bulgaria. In the Commission's Communication on Roadmap for Bulgaria, it
was stated that the Commission would propose revised Accession Partnerships for Bulgaria7
in  the  light  of  the  findings  of  the  2002  Regular  Reports  and  roadmap.  The  Communication
also  stated  that  short  and  medium  term  issues  identified  in  the  roadmap  would  be  further
developed  in  the  revised  Accession  Partnership  to  be  presented  next  year,  and  that  the
Accession  Partnership  would  continue  to  be  the  basis  for  programming  pre-accession
assistance,  but  that  priorities  for  assistance  would  also  be  drawn  from  the  Regular  Reports,
roadmap and revised National Development Plans to be prepared by each country in line with
Structural  Funds  requirements.  It  was  stated  that  the  Accession  Partnership  would
complement  the  roadmap  and,  taken  together,  would  be  the  main  tools  guiding  Bulgaria’s
work on preparation for accession to the EU.

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 2002 Regular Report on the progress made by
Bulgaria towards membership of the Union and the Roadmap, 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 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:

6

7

Council  Decision  of  28  January  2002  on  the  principles,  priorities,  intermediate  objectives  and
conditions contained in the Accession Partnership with Bulgaria OJ L 044, 14/02/2002 P001 -0011
COM(2002)624

5

                                                
– 

– 

– 

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.

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. At Luxembourg, in 1997, it stressed that incorporation of the acquis
into legislation is necessary, but not in itself sufficient, since it is also 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.  The  Copenhagen
European  Council  in  2002  again  underlined  the  importance  of  judicial  and  administrative
reform, which would help bring forward Bulgaria 's overall preparation for membership.

4.

Priorities

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  countries  to
prepare for accession. The 2002 Regular Reports concluded that Bulgaria continues to fulfil
the political criteria and that it is a functioning market economy. However, it is not yet able to
cope  with  competitive  pressure  and  market  forces  within  the  Union.  Bulgaria  does  not  yet
fully  meet  the  acquis  criteria.  In  order  to  complete  its  preparations  successfully,  Bulgaria
needs to continue its efforts to transpose, implement and enforce the acquis. It also needs to
continue the reform of public administration and the judiciary in order to have the necessary
administrative and judicial capacity for this.

The roadmap for Bulgaria, which covers the period up to accession, indicates the main steps
that it needs to take to be ready for membership. It is based on the commitments made in the
negotiations and on what needs to be done to fulfil the  Copenhagen and Madrid  criteria for
membership.  The  roadmap  aims  to  support  Bulgaria’s  efforts  to  meet  the  remaining  criteria
for membership  by  identifying  the tasks  ahead  and  providing  increased  financial  assistance.
There is particular emphasis on administrative  and judicial capacity necessary to implement
the  acquis  and  on  economic  reform.  For  the  acquis  chapters,  the  roadmaps  provide
benchmarks against which Bulgaria’s progress can be monitored. These cover both alignment
of legislation and development of administrative capacity.

This revised Accession Partnership complements the roadmap and, taken together, these  are
the main tools guiding Bulgaria’s work on preparation for accession to the EU. The Accession
Partnership  further  develops  the  short  and  medium  term  issues  identified  in  the  roadmap,
identifying priorities that it is realistic  to expect that Bulgaria can complete or  take  forward
substantially over the period 2003/4. The priorities in the Accession Partnership have been set
in  cooperation  with  the  countries  concerned.  The  achievement  of  these  will  condition  the
degree  of  assistance  granted.  Within  these  priorities,  issues  that  require  particularly  urgent
action have been highlighted.

6

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  basis  of  the  analysis  of  the  Commission’s  2002  Regular  Report  and  the
roadmap,  the  following  priorities  and  intermediate  objectives  have  been  identified  for
Bulgaria.  These  priorities  are  presented  in  accordance  with  the  structure  of  the  Regular
Report8.

Political Criteria

Democracy and the rule of law

Public administration

– 

– 

– 

– 

– 

– 

– 

8

Prepare  a  fully  comprehensive  public  administration  reform  strategy,  including  an
action plan, in 2003. The strategy should involve a twin track approach combining;
continuing  to  support  institution  building  directly  relevant  to  the  acquis  and
management  of  EC  funds;  and  horizontal  reform  designed  to  improve  the
effectiveness of the public administration more generally.

Take  steps  to  ensure  application  of  transparent  procedures  for  recruitment  and
promotion  and  to  improve  human  resource  management.  Take  steps  towards
ensuring  sufficient  qualified  staff  to  ensure  sustainability  of  reforms.  Increase  staff
percentage with civil servants status. Protect staff, whatever their status, from unfair
dismissal.

legal  framework  for
Improve  (through  simplification  and  clarification) 
administrative  decision-making  and  procedures  to  ensure  legal  certainty.  Take
further steps to ensure accountability, openness and transparency of public service.

the 

Strengthen  administrative structures  to  ensure  that  it  has  the  necessary  capacity  for
fully effective use of and proper accounting for EC funds.

Strengthen  capacity  for  strategic  planning,  policy  analysis  and  evaluation  at  the
centre of government and in line ministries.

Give  more  attention  when  the  EC  acquis  is  transposed,  to  how  this  can  be
implemented  and  enforced,  including  in  the  court  system,  at  national,  regional  and
local levels, in a way appropriate to the situation in Bulgaria.

Further  improve  the  quality  of  consultation  with  affected  parties  (e.g.  social  and
economic  partners,  civil  society,  and  private  sector)  on  preparation  of  new
legislation.

The order of presentation is that used in the 2002 Regular Report and Roadmap.

7

                                                
Judicial System

– 

Take steps to continue the reform of the judicial system:

– 

– 

– 

– 

Continue to implement the National Reform Strategy for the Bulgarian Judicial
System  and  Action  Plan  and  adopt  implementing  legislation  in  line  with  EU
practices.

Review the structure of the judiciary in line with EU best practices, including a
review of the organisation of the pre-trial phase.

Review  the  degree  of  penal  immunity  of  members  of  the  judiciary  to  ensure
this is in line with EU best practices.

Take  steps  to  improve  judicial  proceedings  in  particular  to  reduce  excessive
length and ensure full implementation of fundamental rights in penal cases, in
particular as regards legal aid.

– 

Ensure the budget for the judiciary is adequate.

Clearly  distinguish  between  the  roles  of  the  Supreme  Judicial  Council  and  of  the
Ministry of Justice aiming to respect the independence of the judiciary.

Strengthen the administrative capacity of the Supreme Judicial Council to ensure its
proper functioning as regards both strategic decision-making and management of the
court system.

Take  steps  to  improve  the  functioning  of  courts  through  increasing  management
training for Court Presidents, development of efficient administrative support at both
central  and  local  levels  and  through  introduction  of  a  transparent  case  distribution
system.

Improve security and working conditions in courts and prosecution offices.

Establish  a  more  open,  fair  and  transparent  system  for  recruitment,  evaluation  and
promotion process based on merit within the judiciary.

– 

Enhance  professionalism  in  the  judiciary  by  ensuring  adequate  state  funding
for the National  Institute for the Judiciary  allowing  it to develop  high  quality
training for judges, prosecutors and administrative staff.

Modernise management methods in the prosecution service in order to  improve the
transparency and efficiency of case handling.

– 

– 

– 

– 

– 

– 

Anti-corruption measures

– 

– 

Continue to implement the National Anti-corruption Strategy and the Action Plan.

Take steps to ensure the legal framework for tackling corruption is implemented and
enforced.  Introduce  the  notion  of  criminal  liability  of  legal  persons  in  Bulgarian
Criminal Law. Ratify the Council of Europe Civil Law Convention on Corruption.

8

Human rights and the protection of minorities

– 

– 

– 

– 

– 

– 

– 

– 

Adopt  and  start  to  effectively  implement  comprehensive  anti-discrimination
legislation transposing the EC anti-discrimination acquis9.

Complete reorganisation and modernisation of the police, continue efforts for police
officers  to  respect  basic  human  rights  in  all  circumstances;  broaden  the  use  of
community policing approaches, which improves relations with public, in particular
minority groups.

Continue  efforts  to  tackle  trafficking  in  human  beings,  including  prevention  and
social reintegration efforts.

Take  further  steps  to  bring  all  places  of  pre-trial  detention,  in  particular  police
stations,  into  line  with  the  basic  requirements  identified  in  the  Council  of  Europe
Committee for the Prevention of Torture report.

Ensure implementation and sufficient budgetary resources to ensure access to justice
and legal aid.

Ensure the childcare system is reformed so as to systematically reduce the number of
children  in  institutional  care  in  particular  through  developing  alternative  social
services  aimed  at  children  and  families.  Ensure  the  full  implementation  of  the  UN
Convention on the Rights of the Child.

In need of particularly urgent action: Provide a legal framework which ensures the
necessary safeguards against arbitrariness of detention and improve living conditions
in  the  mental  health  care  system.  Adopt  and  implement  a  strategy  and  action  plan
with an adequate financial framework of substantial reform in the mental health care
system.

Take concrete action to implement the Roma Framework Programme with particular
attention  to  providing  necessary  financial  support,  significant  strengthening  the
government  body in charge  of  minority  issues  and  ensuring  equal  access  to  health,
housing, education and social security. Elaborate a concrete action plan and financial
framework to the Roma Framework Programme which improves implementation.

Economic Criteria

The high degree of macroeconomic stability achieved over recent years should be maintained
and the implementation of the reform programme to remove remaining difficulties needs to be
continued.

– 

Make further efforts in the following areas:

– 

– 

The privatisation programme;

Developing  small  and  medium-sized  enterprises,  in  particular  the  number  of
start-ups;

9

See also chapter “Employment and social policy”

9

                                                
– 

– 

– 

– 

– 

– 

– 

Implementing the programme to reduce and simplify licensing procedures;

Reforming customs and tax administrations;

The efficiency of bankruptcy procedures;

Developing financial intermediation and the non-banking financial sector

Enforcing property rights;

The number of transactions and prices of agricultural land;

The  volume  and  quality  of  public  investment,  including  infrastructure,
education environment and health;

– 

The reduction of State Aid, in particular in the energy and transport sectors.

Ability to assume the obligations of membership

Free movement of goods

– 

Take necessary horizontal and procedural measures.

– 

– 

Transpose 80% of European standards including full transposition of European
harmonised standards in the field of New Approach Directives.

Strengthen  administrative  capacity  in  the  field  of  standardisation  and  support
the development of the conformity assessment bodies and laboratories.

– 

Ensure that the transposition of all New and Old Approach  Directives is completed
and that the texts are fully in line with EC legislation

– 

– 

– 

Strengthen the administrative capacity in the fields of chemical substances and
motor vehicles.

Transpose  the  acquis  on  chemical  substances,  motor  vehicles,  wood,  the
control of weapons and return of cultural goods.

Reach full compliance with the acquis concerning pharmaceuticals for human
use  as  well  as  medicines  for  veterinary  use,  including  as  regards  marketing
authorisations.

– 

Amend the Law on public health.

– 

Continue efforts in food safety and foodstuffs.

– 

– 

Progressively align the legislation on the acquis on foodstuffs.

Develop  administrative  capacity,  create  a  system  of  national  training  of
inspectors and food operators, ensure proper application of the HACCP (hazard
analysis of critical control points), accredit and reform the laboratories.

10

– 

– 

Ensure  progress  in  non-harmonised  areas.  Integrate  the  principle  of  mutual
recognition into relevant legislation on goods.

– 

Complete the screening of the legislation in the non-harmonised area to check
conformity  with  Articles  28-30  of  the  Treaty  and  eliminate  non-compliant
provisions.

Make  further  efforts  to  align  legislation  and  to  ensure  its  effective  enforcement  as
regards public procurement.

– 

– 

– 

Establish a State agency on public procurement.

Identify  the  constitutional  changes  required  to  transpose  remedies  system
provisions.

Amend the Law on public procurement, including the removal of the national
preference, to ensure full compatibility with the acquis.

Free movement of persons

– 

– 

– 

– 

– 

Continue  legislative  work  on  mutual  recognition  of  professional  qualifications  and
diplomas and ensure administrative structures are in place.

Make preparations to revise the Bulgarian Constitution to ensure compliance with the
acquis on the right of vote, including special legislation on elections of the European
Parliament.

Continue  to  align  legislation  with  Community  rules  with  respect  to  nationality,
residence and language requirements, as well as equal treatment for migrant workers.

Continue preparatory work for participating in the EURES network.

Take  preparatory  measures  to  meet  the  financial  and  administrative  obligations,
which will result from application of the rules on co-ordination of social security.

Freedom to provide services

– 

Further uphold the right of establishment and freedom to provide services.

– 

– 

Amend  further  the  Law  on  foreigners  to  remove  incompatibilities  with  the
acquis.

Amend the Attorney Act, the Law on gambling and the Law on weapons and
dual-use goods.

– 

Fully align legislation on financial services with the acquis, including with the new
Directives  or  Regulations  adopted  as  part  of  the  Financial  Services  Action  Plan.
Pursue the strengthening and independence of the financial supervisory bodies.

– 

Transpose  further  the  acquis  in  the  field  of  insurance  services,  in  particular,
start to bring compensation progressively in line with EU minimum levels with
regard to third party liability motor insurance.

11

– 

Fully  align  Data  Protection  Act  with  the  acquis  and  develop  the  necessary
administrative capacity to implement it.

– 

Fully transpose the acquis on conditional access and on technical standards.

Free movement of capital

– 

Finalise alignment on capital movements, except where transition periods have been
granted.

– 

To adopt all necessary amendments to the Foreign Exchange Law and shortly
afterwards the regulations on its implementation.

– 

Develop programmes in financial institutions against money laundering.

– 

All  relevant  professions,  particularly  all  credit  and  financial  institutions,  to
co-operate  fully  with  the  authorities  responsible  for  combating  money
laundering  in  accordance  with  the  Anti  Money  Laundering  Directive
(91/308/EEC) well ahead of accession.

– 

– 

– 

Reinforce administrative capacity of Bureau of Financial Intelligence.

Take further steps to complete alignment of legislation on payment systems.

Take further steps to complete alignment of legislation on money laundering.

Company law

– 

– 

Fully align legislation on Intellectual and Industrial Property Rights with the acquis
and improve its enforcement. Intensify measures to combat piracy and counterfeiting
in particular through strengthening border controls, improving co-ordination between
the  customs,  police  and  judiciary  on  enforcement  of  intellectual  and  industrial
property rights and ensuring proper training of enforcement bodies, including judges
and prosecutors.

Make  further  progress  in  the  alignment  with  the  acquis  on  company  law  and
accounting  and  pursue  improvement  of  administrative  capacity  in  this  area,  in
particular with regard to law enforcement.

Competition policy

– 

Complete the  legal antitrust  framework,  pursue  training  efforts  and  further  develop
record of effective implementation and enforcement of anti-trust rules.

– 

– 

– 

Ensure that the antitrust legislation takes full account of the acquis, including
the more recent block exemptions.

Ensure a  more  deterrent sanctions  policy  and  emphasis  on  preventing  serious
distortions of competition.

Increase awareness of the rules, in particular with the business community and
the judiciary.

12

– 

Complete the legislative framework in relation to State aid

–  Make further modifications to the substantive implementing rules.

– 

Under the Europe Agreement mechanisms, adopt jointly with the Community
of a regional aid map in line with the acquis.

– 

Upgrade expertise and improve the quality of State aid decisions, as well as State aid
transparency.

– 

– 

– 

Further  strengthen  (e.g.  training  and  resources)  the  administrative  capacity,
including  intensified  cooperation  between  the  Commission  for  protection  of
competition (CPC) and the State aid department of the Ministry of Finance.

Improve  State  aid  transparency,  ensuring  that  inventory  and  annual  reports
include all aid measures.

Increase awareness of the rules, in particular among aid grantors, the business
community and the judiciary.

– 

Improve State aid enforcement record, in particular by assessing existing schemes in
Bulgaria  under  which  State  Aid  is  being  granted  to  bring  them  into  line  with  the
acquis  and  ensure  that  through  the  ex-ante  control  of  all  new  aid  measures,  full
compatibility with the acquis is assured.

– 

Prepare an overall restructuring plan, along with individual plans, for the steel sector.

Agriculture

– 

– 

– 

– 

– 

– 

– 

Continue to upgrade the capacities to operate management mechanisms of the CAP ,
particularly  the  Paying  Agency  and  the  Integrated  Administration  and  Control
System.

Continue to improve the efficiency of the implementation of SAPARD.

With regard to horizontal issues, continue to upgrade the administrative structure in
areas  such  as  quality  policy,  organic  farming,  FADN  (Farm  Accountancy  Data
Network).

Continue  implementation  of  Common  Market  Organisations  for  all  relevant
products,  including  the  setting-up  of  the  vineyard  register  and  the  development  of
approved  distilleries,  development  of  capacities  of 
intervention  agencies,
development of inter-branch organisations.

Upgrade  administrative  structures  for  design, 
implementation,  management,
monitoring, control and evaluation of EC funded rural development programmes and
the EU forestry strategy.

Continue work on a national cadastre and property register to improve the situation
of the land market.

Complete  alignment  of  veterinary  and  phytosanitary  legislation  in  order  to  enforce
internal  market  control  systems  and  imports  from  third  countries  fully  and

13

effectively;  continue  to  implement  veterinary,  phytosanitary  and  food  safety
legislation, including animal disease control measures.

– 

– 

– 

– 

– 

– 

Continue the efforts of establishing the national database for bovine animals in
order to make it fully operational by the end of 2003.

Continue  the  upgrading  of  food  processing  establishments,  including  the
upgrading of old slaughterhouses.

Resource  the  NVS  adequately  and  establish  a  programme  of  the  National
Veterinary Service for establishments to meet fully the EU requirements until
the end of 2004.

Continue  the  process  of  upgrading  or  developing  all  proposed  long-term
veterinary border inspection  posts,  including  training  of  relevant  personnel  in
all procedures required to meet EU legislation.

Continue training for official veterinarians.

Continue implementation of EC legal requirements on animal movements with
a  view  to  a  system  in  full  conformity  with  acquis  on  identification  and
registration of animals.

– 

Progress on transposing and implementing acquis on animal waste.

Fisheries

– 

– 

– 

– 

– 

– 

– 

institutional
the  establishment  of  adequate  organisation,  adequate 
Complete 
resources  and  equipment  relating  to  inspection  and  controls,  market  and  structural
policy at central and regional levels.

Complete the fishing register in full compliance with EC requirements.

Develop a reliable system of fisheries statistics.

Implement  recently  adopted  legislation  governing  the  functioning  of  the  main
administrative structures.

Make additional staff available  for the  Fisheries  Department within the  Ministry of
Agriculture, Food and Forestry.

Strengthen  control  activities  by  putting  more  emphasis  on  training  fisheries
inspectors, providing appropriate equipment, and increasing the number of inspectors
for controlling sea fisheries.

Preparation  to  implement  the  regulations  concerning  resources  management  and
control.

Transport policy

– 

Continue  legal  alignment  in  road  transport  and  its  implementation,  especially  to
adapt the fleet to technical and safety requirements (tachographs and speed limitation
devices),  social  legislation,  introduction  and  gradual  increase  of  the  financial

14

– 

– 

– 

– 

– 

standing requirements for access to the profession, transport of dangerous goods and
alignment of the system of vehicle taxes and road charges.

Reinforce  administrative  capacity  in  road  transport,  especially  in  connection  to
transport  of  dangerous  goods,  social  legislation  (driving  times  and  rest  periods),
market access, access to the profession and road-side checks.

Continue  legal  alignment,  implementation  and  reinforce  administrative  capacity  in
the  railways  sector  –  including  strengthening  of  the  regulatory  body,  the  notified
body,  independence  of  the  railway  infrastructure  manager,  the  rail  infrastructure
charging  scheme  and  financial  stabilisation  of  the  main  operator,  with  a  view  to
implementing  the  revised  railway  acquis;  ensure  complete  transposition  and
implementation of the EU legislation on interoperability.

Ensure  necessary  administrative  capacity  to  prepare  for  the  significant  investments
needed  in  rail  and  road  infrastructure,  in  anticipation  to  being  able  to  benefit  from
EU  structural  funds;  implement  schedule  to  ensure  the  necessary  investments  for
upgrading  and  rehabilitating  the  road  network  up  to  EU  axle-weight  norms,  taking
account of environmental protection legislation.

Complete  full  accession  to  the  Joint  Aviation  Authorities  and  continue  legislative
alignment  and  implementation  of  related  secondary  legislation  on  Joint  Aviation
requirements,  implement  a  staged  introduction  of  Third  Package  Regulations  and
harmonisation  of  requirements  and  administrative  procedures  in  the  field  of  civil
aviation, reinforce the qualification of the aviation administration personnel.

Complete  alignment  with  EU  maritime  legislation  in  safety  and  non-safety  areas;
improve  maritime  safety,  in  particular  improve  the  performance  of  maritime  safety
administrative  institutions,  firstly  as  a  Flag  State,  and  then  as  a  Port  State,  and
guarantee their independence; strengthen Bulgarian Maritime Administration; further
align  with  EU  maritime  acquis  in  areas  of  safety  through  the  Merchant  Shipping
Code and implementing legislation. Continue to improve the maritime safety record
of the Bulgarian fleet  under  the  Paris  memorandum  by  adopting  and  implementing
all appropriate measures.

Taxation

– 

– 

Develop  an  updated  business  strategy  for  the  tax  administration  and  approve  other
linked  strategies,  such  as  audit  strategies  and  the  creation  of  a  unified  National
Revenue Agency.

Continue alignment of tax legislation in VAT and excise duties.

Statistics

– 

– 

Strengthen  administrative  capacity,  through  particular  attention  to  further  staff
development  in  the  statistics  administration  and  information  technology  capacity,
notably in regional offices.

Further improve regional statistics in order that regional statistics, regional databases
and the settlements register to be in line with EU requirements.

15

– 

– 

– 

Further improve the quality and  coverage  of national accounts, short-term  statistics
and the quality and coverage of the business register.

Implement an agriculture census in 2003 in accordance with Eurostat methodology.

Start the preparations for the Intrastat system.

Employment and social policy

– 

– 

– 

– 

– 

– 

– 

– 

Continue  alignment  of  the  acquis  in  the  area  of  labour  law  in  particular  through
amending the Labour Code and Employment Promotion Act and the respective by-
laws.  Strengthen  the  related  administrative  and  enforcement  structures  including
labour  inspectorates  and  establish  an  independent  guarantee  fund  for  employees  in
the case of employer's insolvency.

Transpose  and  implement  the  EU  legislation  in  the  field  of  equal  treatment  for
women and men and ensure its proper implementation.

Adopt legislation to transpose the anti-discrimination acquis. Establish a body for the
promotion  of  equal  treatment  of  all  persons  without  discrimination  on  grounds  of
race or ethnic origin.

Complete  transposition  of  the  acquis  on  health  and  safety  at  work  and  develop
implementation capacity, in particular of the General Labour Inspectorate. Undertake
an  assessment  of  financial  impact  of  implementing  health  and  safety  Directives.
Abolish the compensation system for bad working conditions

revised  European  Guidelines  and 

Implement  the  adopted  National  Action  Plan  for  Employment,  taking  into  account
the 
the  priorities,  commitments  and
recommendations  identified  in  the  Joint  Assessment  of  Employment  Policy
Priorities. Develop the capacity  of  the  National  Employment  Agency  to  implement
active labour measure and employment programmes and strengthen its regional and
local structures.

Continue  alignment  of  legislative  framework  and  develop  implementation  capacity
for the acquis on public health, including the acquis on tobacco control. Continue to
establish a system for the surveillance and control of communicable diseases in line
with Community requirements and for health monitoring and information in line with
EU standards

Continue efforts to strengthen the capacity to ensure access to and quality of health
care in order to optimise the investment in health needed to improve the health status
of the population.

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. Promote autonomous social
dialogue,  especially  at  the  enterprise  and  sectoral  level,  in  order  to  improve  its
coverage.  Prepare  a  social  inclusion  and  anti-poverty  national  strategy,  including
data collection, with a view to future participation in the European strategy on social
inclusion.

16

– 

Start to prepare  a social inclusion and  anti-poverty national strategy, including data
collection,  with  a  view  to  future  participation  in  the  European  strategy  on  social
inclusion.

Energy

– 

– 

– 

– 

– 

– 

– 

Implement  the  commitments  taken  for  the  progressive  constitution  of  oil  stocks  as
required  by  the  acquis;  strengthen  and  equip  the  State  agency  responsible  for  the
management  of  these  stocks;  ensure  the  necessary  financing  for  the  constitution  of
stocks.

Implement the new energy strategy paying particular attention to the need for a pro-
active  and  co-ordinated  policy  to  reduce  the  energy  intensity  of  the  Bulgarian
economy, at all stages of the energy cycle, with a view to enhancing rapidly support
for improving energy efficiency, increasing energy savings and enhancing the use of
renewable  energy  sources;  ensure  transposition  of  the  energy  efficiency  acquis
(labelling appliances, minimum efficiency standards).

Adopt  new  framework  legislation  and  start  to  implement  a  schedule  to  establish
conditions for a full implementation of the EU internal market for electricity and gas
and  for  the  staged  opening  of  the  electricity  market  and  gas  market,  analyse  long
term contracts and power purchases agreements in view of possible “stranded costs”
according to  the  current acquis; eliminate remaining price  distortions  in  the  energy
sector,  in  particular  for  household  electricity  and  heating  prices.  Continue  to
strengthen  the  role  and  administrative  capacity  of  the  State  Energy  Regulatory
Commission  in  enforcement  of  these  rules,  notably  its  financial  independence.
Prepare  for  further  market  opening  and  liberalisation  under  forthcoming  new  EU
internal market acquis.

Continue to implement the restructuring plans (including privatisation) in the energy
sector, including the Action Plan for restructuring of the solid fuel sector.

Continue to implement the recommendations contained in the 2001 Council report on
“Nuclear  Safety  in  the  Context  of  Enlargement”,  and  its  subsequent  Peer  Review
Status Report of June 2002, with due regard to the priorities assigned in the report,
including  the  strengthening  of  the  capacity  and  independence  of  the  Nuclear
Regulatory Authority; prepare to implement commitments taken as regards the early
closure  of  Units  3&4,;  advance  the  preparation  for  and,  as  appropriate,  start  to
address  the  early  closure's  economic,  social,  financial,  technical  and  environmental
consequences.

Continue  to  ensure  a  high  level  of  nuclear  safety  at  Units  5  &  6  of  the  Kozloduy
nuclear  power  plant  and  maintain  a  high  level  of  nuclear  safety  through  the
decommissioning phases of Units 1-4.

Improve management of radioactive waste and adopt a Strategy Plan on Safety and
Effective Nuclear Fuel Cycle Management.

Small and medium-sized enterprises

– 

Implement the European Charter for Small Enterprises.

17

Science and research

– 

Reinforce  research-related  administrative  capacity  and  infrastructure,  in  order  to
increase  the  benefits  from  association  with  the  relevant  Community  Framework
Programmes including the 6th Framework Programme (2002-2006).

Education and training

– 

Prepare for full implementation of the Directive on education of children of migrant
workers by the date of accession.

Telecommunications and information technologies

– 

– 

– 

– 

– 

– 

Complete  the  transposition  of  the  telecommunications  acquis  and  implement  it
effectively,  especially  the  promotion  of  competition  and  applying  those  aspects  of
the legislation which apply to operators with Significant Market Power.

Enhance the capacity of the telecommunications regulator, especially addressing the
ability to enforce the acquis. Improve its financial independence.

In preparation for a fully open telecommunications market, inter alia develop a more
commercially oriented approach in the incumbent operator.

Prepare  the  transposition  and  implementation  of  the  new  acquis  by  the  time  of
accession;  reinforce  capacity  of  regulator  as  needed 
to  cope  with  new
responsibilities.

Strengthen  the  regulatory  framework  for  postal  services.  Adopt  and  implement
further  legislation  to  achieve  full  compatibility  with  the  acquis  (including  new  2nd
Directive and in particular, with a view to ensuring a financially viable provision of
universal service at the appropriate level of quality). Continue work for appropriate
licensing and authorisation mechanisms.

Implement a clear postal price policy regime to put in place precisely after its market
is completed de-regulated by 2003.

Culture and Audio-visual policy

– 

– 

Strengthen the administrative capacity of the national regulatory body in the field of
broadcasting.

Establish  the  conditions  for  a  predictable,  transparent  and  effective  implementation
of the new regulatory framework in the field of audio-visual policy.

Regional policy and co-ordination of structural instruments

– 

Make  progress  in  implementing  the  Bulgarian  National  Strategy  for  preparation  on
Structural  Funds  and  the  Cohesion  Fund.  Continue  to  adopt  the  framework
legislation needed to implement the acquis under this chapter.

– 

Further elaborate the arrangements to ensure inter-ministerial co-ordination as
well as the definition of the tasks to be performed by the bodies involved in the

18

preparation and implementation of Structural Funds and the Cohesion Fund at
the national and regional level.

– 

– 

Further adopt legislation which ensures compatibility of operations financed by
the  Structural  Funds  and  Cohesion  Fund  with  Community  policies  and
legislation, including rules on competition, on the award of public contracts, on
environmental  protection,  on  elimination  of  inequalities  and  promotion  of
equality between men and women.

legislative 

Elaborate  a 
for  multi-annual  budget
framework  allowing 
programming  with  a  view  to  provide  the  national  co-financing  for  the
Structural and Cohesion Funds assistance and allowing for sufficient flexibility
for financial adjustment.

Bring  administrative  capacity  of  the  units  within  the  ministries  designated  or  to  be
designated  as  future  managing  or  paying  authorities  up  to  the  level  required  for
efficient  and  correct  implementation  of  Structural  Funds  assistance  (in  terms  of
recruitment, career profiles and training).

Accelerate efforts in improving the quality of the National Development Plan (NDP).
Bulgaria  needs  to  put  serious  efforts  in  strengthening  its  strategic  capability  and
operational  capacity  to  improve  and  implement  the  National  Development  Plan,  in
order to transform it into a comprehensive national planning tool (further integration
of the NDP into the national budgetary and policy making process).

Continue  to  develop  the  capacity  to  discuss,  prepare  and  select  development
priorities  and  projects  both  at  the  national  and  regional  level  to  be  financed  by  the
different structural funds , FEDER,ESF,EAGGF.

– 

Finalise preparations for extended decentralisation (EDIS).

Make progress in ensuring compliance with acquis requirements for monitoring and
evaluation  of  the  Structural  Funds,  in  particular  for  ex-ante  evaluation  and  for  the
collection of the relevant statistical information and indicators.

Elaborate a general legal and institutional framework for financial control and audit.

Make  progress  in  establishing  appropriate  systems  and  procedures  for  financial
management  and  control,  in  particular  in  relation  to  the  structure  of  the  managing
and  paying  authorities,  in  order  to  fulfil  the  specific  requirements  of  the  Structural
Funds  regulations.  Specific  attention  is  to  be  given  to  an  adequate  separation  of
functions within the whole implementation structure.

– 

– 

– 

– 

– 

– 

Environment

– 

– 

Update  the  overall  assessment  of  the  situation  in  the  environment  sector,  including
regarding the transposition of the EU acquis, in order to identify gaps to be filled in.

Continue transposition of the acquis, including secondary legislation, with particular
emphasis  on  environmental  impact  assessment,  access  to  information,  waste
management, industrial pollution and risk management, nature protection, chemicals
and  genetically  modified  organisms,  and  nuclear  safety  and  radiation  protection.

19

– 

– 

– 

– 

Ensure  full  consultation  with  all  relevant  stakeholders  (other  ministries,  economic
operators, NGOs).

Develop implementation plans, together with financing strategies, to outline the steps
needed to ensure full implementation of the acquis in the medium and longer term;
these plans should take into account all available resources and institutional training
and  further  elaborate  mechanisms  to  monitor  effective  implementation,  with
particular  emphasis  on  air  quality,  waste  management,  water  quality,  industrial
pollution and risk management. Focus on planning, identification and availability of
financial  resources  to  prepare  for  the  significant  investments  needed  to  ensure
implementation of the acquis.

Continue  implementation  of  the  acquis  with  particular  emphasis  on  access  to
information,  air  quality,  waste  management,  water  quality,  nature  protection,
industrial  pollution  and  risk  management  as  well  as  nuclear  safety  and  radiation
protection.  Ensure  that  the  environmental  acquis,  particularly  the  Environmental
Impact  Assessment  Directive,  is  properly  implemented  in  preparing  large-scale
infrastructure projects.

the  administrative  structures  necessary  for 

the  full
Ensure  and  reinforce 
implementation,  monitoring  and  enforcement  of  the  acquis,  in  particular  through
further  strengthening  of  regional  inspectorates,  municipalities  and  other  public
bodies at the local level, with an emphasis on water quality, industrial pollution and
risk  management, as  well as waste management. Reinforce  staffing  of  the  Ministry
and other public bodies. Ensure adequate training and staff development plans.

Continue integration of environmental protection requirements into the definition and
implementation  of  all  other  sectoral  policies  so  as  to  promote  sustainable
development, including in the energy sector. Improve inter-ministerial co-ordination
on environmental issues.

Consumers and health protection

– 

– 

– 

– 

Continue alignment of legislation in particular in the field of sales of consumer goods
and  associated  guarantees,  injunctions  for  the  protection  of  consumer  interests,
timeshare,  consumer  credit,  distance  contracts,  comparative  advertising,  general
product safety and product liability.

Ensure  effective  implementation  of  legislation,  in  particular  through  an  efficient
market surveillance mechanism.

Further promote the capacity of consumer organisations to play an active role in the
area of consumer protection.

Better integrate consumer concerns into other policy areas.

Co-operation in the fields of justice and home affairs

– 

Adopt and implement the new Border Security Act and the secondary legislation as
well as an  integrated border management  strategy covering  all borders of  Bulgaria.
Particular  attention  should  be  given  to  the  gradual  modernisation  of  the  border
infrastructure  and  equipment,  the  necessary  training  for  professional  border  guards

20

– 

– 

– 

– 

– 

– 

– 

– 

– 

and  customs  officers,  especially  as  regards  the  use  of  risk  analysis  methods  and
strengthening their intelligence functions and for the co-ordination and practical co-
operation between authorities; develop an integrated sea surveillance system.

Continue  to  implement  and  update  on  a  regular  basis  the  Schengen  Action  Plan,
continue preparation for full participation in SIS II by developing national databases
and registers.

Continue alignment with the EU positive and negative visa lists; continue to upgrade
the administrative capacity of the Visa Centre and continue to provide all diplomatic
and  consular  offices  with  technical  equipment  for  detecting  forged  and  falsified
documents.

Bring the Asylum and Refugees Act fully in line with  the EU acquis, especially as
regards  its  articles  13  and  16;  increase  the  capacity  of  the  reception  centres  for
asylum  seekers  and  refugees;  further  improve  the  administrative  capacity  of  the
Agency of Refugees; accelerate screening procedures and improve the conditions for
integration  of  refugees  and  prepare 
the  full
implementation  of  the  Regulations  relating  to  ‘EURODAC’  and  ‘Dublin  II’  upon
accession.

infrastructure 

to  ensure 

the 

Continue  efforts  to  combat  efficiently  illegal  immigration,  through  and  from
Bulgaria, with special attention to criminal organisations facilitating the illegal entry
into EU member states (in particular of women and children); ensure assistance for
victims of trafficking; adopt new legislation on migration in line with the current EU
acquis; establish a national co-ordination body.

Enhance  combating  corruption,  in  law  enforcement  bodies  by  (i)  adopting  and
implementing  a  code  of  ethics  for  magistrates,  (ii)  developing  a  corrupt  practices
prevention programme as well as a code of ethics for officials in Ministry of Interior,
in  particular  traffic  and  border  police  and  (iii)  providing  specialised  training  and
equipment,  including  an  information  system,  to  the  officials  who  are  directly
involved in countering corruption.

Continue  efforts  to  align  Bulgarian  legislation  with  the  EU  acquis  in  the  field  of
criminal-law protection of the Communities’ financial interests (PIF convention and
its protocols); assure that there is no overlap in activities between the Public Internal
Financial Control Agency (PIFCA) and the anti-fraud structure that will be set up in
the Ministry of Interior.;

Fully  align  with  the  EU  acquis  on  the  criminal  law  protection  of  the  Euro  against
counterfeiting.

Implement the strategy on the fight against crime, with special attention for various
forms of transborder and organised crime such as trafficking in drugs, human beings,
etc…, and for the co-ordination and practical co-operation between law enforcement
bodies.

Adopt an action plan to implement the National Drugs Strategy, including a realistic
budget.  Strengthen  the  administrative  and  co-ordinating  capacity  of  the  National
Drugs  Council.  (i)  Establish  a  National  Focal  Point.  (ii)  Further  develop  a  drugs
information system. (iii) Adopt the necessary legal framework for the National Drugs

21

– 

– 

– 

Intelligence Unit. (iv) Increase level of co-operation with the EU Member States by
seconding liaison officers in them as well as in other strategic countries in terms of
drug enforcement.

Improve the capacity of the Bureau of Financial Intelligence to enforce the existing
legislation and improve its co-operation with other law enforcement agencies active
in the area of combating money laundering.

Prepare  to  take  further  measures  to  ensure  implementation  of  the  Community
instruments  in  the  area  of  judicial  co-operation  in  civil  matters,  notably  as  regards
mutual recognition and enforcement of judicial decisions.

Prepare  to  make  legislative  amendments  necessary  in  order  to  accede  to  and
implement  the  EU  Convention  on  Mutual  Assistance  in  Criminal  Matters  upon
accession  and  take  the  necessary  steps  to  prepare  for  full  implementation  upon
accession  of  the  instrument  applying  the  principle  of  mutual  recognition  and  in
execution of orders freezing property or evidence.

Customs union10

– 

Make further legislative alignment with the Community customs acquis.

–  Make  further  amendments 

the
harmonisation  of  the  legislation  on  free  zones  as  well  as  the  adoption  of  the
rules on duty suspensions and tariff quotas.

the  customs 

legislation, 

including 

to 

– 

– 

– 

Prepare the conditions for operating the TARIC (Community integrated tariff)
and  include  in  the  TARIC  measures  related  to  the  protection  of  intellectual
property rights.

Fully align the legislation with the acquis on the control of cultural goods.

Accede to the Istanbul Convention on temporary importation.

– 

Strengthen the operational and administrative capacity of the customs administration,
particularly as regards information technology and human resource policy.

– 

– 

– 

Improve  the  human  resources  management  and  the  stability  and  professional
conduct of customs staff and management and increasingly grant civil servant
status to customs inspectors.

Develop  and  implement  Phase  One  of  the  BTMS  (Bulgarian 
transit
management system) as the national module of the NCTS (New Computerised
Transit  System);  continue  the  preparation  for  the  secure  CCN/CSI  (Common
Communication Network / Common System Interface).

Upgrade  customs  laboratories  as  well  as  infrastructure  and  equipment  at
customs clearance points.

– 

Enhance the application of risk analysis method and post-clearance control.

10

See also chapter “Financial and budgetary provisions” for the collection of own resources

22

                                                
– 

– 

Further strengthen  co-operation with customs authorities of neighbouring and other
countries.

– 

Implement the Strategy for rationalisation of border operations.

Take  steps  to  prepare  for  implementation,  at  the  time  of  accession,  of  customs
measures and provisions that will not be introduced until then.

External Relations

– 

Undertake an analysis of all international treaties and agreements in order to ensure
that preparations are made so that those which are incompatible with the acquis are
terminated or renegotiated in due time.

Financial control

– 

– 

– 

– 

– 

– 

– 

Implement  Public  Internal  Financial  Control 
legislation  and  make  further
amendments to implement the Strategy Paper and the Operational Plan for the PIFC
Agency.

– 

– 

Delegate internal auditors to remaining Ministries.

Further  Public  Internal  Financial  Control  manuals  and  Audit  Trails  to  be
elaborated.

Strengthen further the administrative capacity of the PIFC institutions.

Ensure the professional criteria for and functional independence of the PIFC Agency
leadership in compliance with commitments.

Upgrade  external  audit  functions,  especially  in  terms  of  systems-based  and
performance audits, and enhancing training efforts.

– 

– 

Rules on Financial Management and Control of the  NAO  and  any interaction
with Parliament to be adopted and implemented.

Standard of audit of EU funds and programmes, Code of Ethics and amended
General Standards to be adopted and implemented.

– 

Audit manual to be finalised.

Continue  to  strengthen  the  capacity  of  the  National  Fund,  the  CFCU  and  other
implementing  agencies  dealing  with  pre-accession  funds  in  preparation  for  the
extended decentralisation of Phare and ISPA implementation.

Ensure the correct implementation of the provisions with regard to the treatment of
irregularities under Phare, Sapard and ISPA

Establish a well-functioning and operationally independent Anti-Fraud Co-ordinating
Service (AFCOS), responsible for the co-ordination of all legislative, administrative
and  operational  activities  related  to  the  protection  of  the  Communities’  financial
interests.

23

– 

– 

Implement effective co-operation with OLAF through this service.

Take  the  necessary  steps  to  prepare  for  implementation  of  the  acquis  on  the
protection of the Euro against counterfeiting.

Financial and budgetary provisions11

– 

– 

– 

Further  develop 
the  Financial  Management
Information  System  and  the  System  for  Electronic  Budgetary  Payments,  and
continued strengthening of the drafting procedure for the annual state budget.

the  Treasury  Single  Account, 

– 

– 

– 

– 

Treasury system to be implemented.

Financial Management Information System to be established.

Develop standards and instructions for the application of the chart of accounts.

Bank accounts regime to be improved.

Further develop an adequately staffed and equipped co-ordinating body in the area of
own resources.

Continue  efforts  to  bring  the  budgetary  principles  and  rules  into  line  with  those
standards generally applicable in the Community.

– 

– 

– 

GNP documentation to be kept in compliance with EU legislation.

Further steps to be taken to reduce the number of extra-budgetary funds.

Special attention to be paid to multi-annual budgeting.

–  Macro-economic forecasting to be further developed.

– 

Effective  evaluation  and  monitoring  procedures  for  projects  and  programmes
to be developed.

– 

Improve compliance of national account statistics with ESA 95 standard and enhance
their exhaustiveness.

– 

– 

Start  to  build  up  technical  and  administrative  capacity  as  regards  operational
management  of  own  resources  and  to  collect  and  transfer  future  EC  all  own
resources  to  the  Community  budget  in  a  timely  manner.Make  progress  on
accounts  for  traditional  own  resources  so  these  are  in  place  on  date  of
accession.

Take  steps  to  prepare  for  implementation,  at  the  time  of  accession,  of  the
commitments  in  the  areas  of  collection  and  control  of  Community  own
resources  and  management  of  the  aspects  of  the  common  agricultural  policy
(control of export refunds…).

11

Certain actions agreed in negotiations under chapter 29 overlap with actions under other chapters and
have therefore been omitted

24

                                                
– 

Start  action  on  the  organisational  aspects  and  associated  administrative
capacity as regards sugar levies.

Further strengthen efforts to set up effective instruments to combat fraud relating to
VAT and customs duties.

Programming

– 

5.

in  community  programmes 

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 the same period, Bulgaria will benefit from substantial EC financial support in
the area of nuclear decommissioning and nuclear safety. In addition Bulgaria will have access
to funding from multi-country and horizontal programmes directly related to the acquis. Joint
financing  by  the  candidate  countries  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.

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  and  the  roadmap  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
Europe  Agreement  sub-committees  provide  the  possibility  to  review  implementation  of  the
Accession  Partnership  priorities  as  well  as  progress  as  regards  legal  approximation,
implementation  and  enforcement.  The  Association  Committee  discusses  overall
developments,  progress  and  problems  in  meeting  the  Accession  Partnership’s  priorities  as
well as more specific issues referred to it from the sub-committees.
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
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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