Recommendation for a COUNCIL RECOMMENDATION on the 2019 National Reform Programme of Bulgaria and delivering a Council opinion on the 2019 Convergence Programme of Bulgaria
Date: 2019-06-05
Institutions: European Commission, Secretariat-General
Subjects: Bulgaria, banking supervision, economic policy, economic reform, employment policy, financial supervision, investment, stability pact, stability programme, tax collection

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   EUROPEAN COMMISSION  Brussels, 5.6.2019  COM(2019) 502 final  Recommendation for a COUNCIL RECOMMENDATION on the 2019 National Reform Programme of Bulgaria and delivering a Council opinion on the 2019 Convergence Programme of Bulgaria    
 
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2019 National Reform Programme of Bulgaria and delivering a Council opinion 
on the 2019 Convergence Programme of Bulgaria 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies1, and in particular Article 9(2) thereof, 

Having  regard  to  Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16  November  2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof,  

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

(2) 

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On 21 November 2018, the Commission adopted the Annual Growth Survey, marking 
the start of the 2019 European Semester for economic policy coordination. It took due 
account  of  the  European  Pillar  of  Social  Rights,  proclaimed  by  the  European 
Parliament, the Council and the Commission on 17 November 2017. The priorities of 
the  Annual  Growth  Survey  were  endorsed  by  the  European  Council  on  21  March 
2019.  On  21  November  2018,  on  the  basis  of  Regulation  (EU)  No  1176/2011,  the 
Commission also adopted the Alert Mechanism Report, in which it identified Bulgaria 
as one of the Member States for which an in-depth review would be carried out.  
The 2019 country report for Bulgaria3 was published on 27 February 2019. It assessed 
Bulgaria’s  progress  in  addressing  the  country-specific  recommendations  adopted  by 

OJ L 209, 2.8.1997, p. 1. 
OJ L 306, 23.11.2011, p. 25. 
SWD(2019) 1001 final. 

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(3) 

(4) 

(5) 

the Council on 13 July 2018, the follow-up given to the recommendations adopted in 
previous years and Bulgaria's progress towards its national Europe 2020 targets. It also 
included  an  in-depth  review  under  Article  5  of  Regulation  (EU)  No  1176/2011,  the 
results  of  which  were  also  published  on  27  February  20194.  The  Commission’s 
analysis  led  it  to  conclude  that  Bulgaria  is  experiencing  macroeconomic  imbalances. 
In particular, vulnerabilities in the financial sector are coupled with high indebtedness 
and  non-performing  loans  in  the  corporate  sector.  While  there  is  progress  in 
addressing  sources  of  the  imbalances,  the  full  implementation  and  monitoring  of 
recent  reforms  of  supervision  and  governance  in  the  bank  and  non-bank  financial 
sectors will be crucial.  

On  24  April  2019,  Bulgaria  submitted  its  2019  National  Reform  Programme  and  its 
2019 Convergence Programme. In order to take account of their interlinkages, the two 
programmes have been assessed at the same time. 

Relevant country-specific recommendations have been addressed in the programming 
of  the  European  Structural  and  Investment  Funds  ('ESI  Funds')  for  the  2014-2020 
period.  As  provided  for  in  Article  23  of  Regulation  (EU)  No  1303/2013  of  the 
European  Parliament  and  of  the  Council5,  where  it  is  necessary  to  support  the 
implementation of relevant Council recommendations, the Commission may request a 
Member  State  to  review  and  propose  amendments  to  its  Partnership  Agreement  and 
relevant programmes. The Commission has provided further details on how it would 
make use of that provision in guidelines on the application of the measures linking the 
effectiveness of the ESI Funds to sound economic governance6.  

Bulgaria  is  currently  in  the  preventive  arm  of  the  Stability  and  Growth  Pact.  In  its 
2019  Convergence  Programme,  the  government,  starting  from  a  headline  surplus  of 
2% of GDP in 2018, aims at a deficit of 0.3% of GDP in 2019, a surplus of 0.4% of 
GDP  in  2020,  0.2%  in  2021  and  0.1%  in  2022.  Based  on  the  recalculated  structural 
balance7, the medium-term budgetary objective — a structural deficit of 1% of GDP in 
structural  terms  —  continues  to  be  overachieved  throughout  the  programme  period. 
According to the 2019 Convergence Programme, the general government debt-to-GDP 
ratio is expected to decline gradually from 22.6% of GDP in 2018 to 16.7% in 2022. 
The  macroeconomic  scenario  underpinning  those  budgetary  projections  is  plausible. 
Based  on  the  Commission  2019  spring  forecast,  the  structural  balance  is  forecast  to 
register  a  surplus  of  0.7%  of  GDP  in  2019  and  0.6%  of  GDP  in  2020,  above  the 
medium-term budgetary objective. Overall, the Council is of the opinion that Bulgaria 
is  projected  to  comply  with  the  provisions  of  the  Stability  and  Growth  Pact  in  2019 
and 2020. 

(6) 

Tax  revenues  and  tax  compliance  are  improving  and  a  number  of  initiatives  are  in 
place. However, tax collection does not seem to be improving everywhere at the same 
pace.  This  is  particularly  the  case  for  labour-related  taxes  and  social  security 

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COM(2019) 150 final. 
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 
laying  down  common  provisions  on  the  European  Regional  Development  Fund,  the  European  Social 
Fund,  the  Cohesion  Fund,  the  European  Agricultural  Fund  for  Rural  Development  and  the  European 
Maritime  and  Fisheries  Fund  and  laying  down  general  provisions  on  the  European  Regional 
Development  Fund,  the  European  Social  Fund,  the  Cohesion  Fund  and  the  European  Maritime  and 
Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320). 
COM(2014) 494 final. 
Cyclically-adjusted  balance  net  of  one-off  and  temporary  measures,  recalculated  by  the  Commission 
using the commonly agreed methodology. 

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(7) 

(8) 

(9) 

contributions  and  in  some  categories  of  excise  taxes.  There  is  also  evidence  that 
undeclared work and illicit trade in fuels remains a challenge. Maintaining the efforts 
to  improve  tax  collection  and  taking  additional  targeted  measures  to  face  the 
challenges in specific areas of the tax system is of paramount importance for reducing 
further the still large shadow economy. 

The  government  has  taken  steps  to  improve  the  effectiveness  of  public  expenditure. 
The  World  Bank  completed  a  spending  review  covering  a  number  of  public 
institutions  (ministries  and  municipalities)  and  two  pilot  studies,  on  policing  and 
firefighting  and  waste  water,  and  delivered  a  manual  for  future  reviews  by  the 
government.  In  the  2018  medium-term  fiscal  strategy,  the  government  introduced  a 
number  of  new  performance  indicators  to  assess  the  impact  of  spending  in  the 
different policy areas over time and to inform evaluation and planning of the budget. 
Following  up  on  these  initiatives  is  expected  to  raise  the  quality,  efficiency  and 
transparency of public spending, and consequently the quantity and quality of public 
goods. 

State-owned  enterprises  suffer  from  weak  corporate  governance,  which  is  also  to  a 
large extent reflected in their economic performance. A reform of the legal framework 
for  the  corporate  governance  of  state-owned  enterprises  is  under  way  in  cooperation 
with the Organisation for Economic Co-operation and Development (OECD) and with 
the  support  of  the  European  Commission’s  Structural  Reform  Support  Service.  The 
reform aims to address the current weaknesses by aligning the national legislation with 
the  OECD’s  corporate  governance  guidelines  for  state-owned  enterprises.  The 
adoption and effective implementation of the framework will ensure the continuity and 
will be critical for the success of the reform. 

In a favourable economic environment, banks’ capital and liquidity ratios improved on 
average.  In  parallel,  non-performing  loans  by  non-financial  corporations  declined, 
although they remain high. While the secondary market for non-performing loans has 
become  more  dynamic,  no  specific  policy  measures  have  been  undertaken  to  that 
effect.  The  follow-up  measures  resulting  from  the  financial  sector  reviews  have 
strengthened  the  banking  sector,  but  some  vulnerabilities  remain.  New  regulatory 
initiatives  in  2018  included  the  rules  for  large  exposures  and  the  identification  of 
connected  clients,  an  increase  in  the  counter-cyclical  capital  buffer  rate  and  the 
introduction of macroprudential  tools  for borrower-based measures. Following up on 
legislative initiatives on related-party exposures, sustained supervisory efforts to limit 
loans to related parties and penalise infringements of collateral provisions are  crucial 
to  support  sound  business  practices.  Enhancing  the  bank  resolution  framework  is 
another pending measure that will contribute to the resilience of the financial sector. 

(10)  Completing  the  insolvency  reform  could  help  reduce  the  high  outstanding  private 
sector debt  and the still high share of non-performing loans. Some missing  elements 
reduce the efficiency and effectiveness of the insolvency framework, resulting in slow 
and  costly  insolvency  proceedings.  At  the  same  time,  the  absence  of  adequate 
monitoring  tools  prevents  a  proper  analysis  of  current  and  new  pre-insolvency  and 
insolvency  procedures  and  does  not  allow  concrete  bottlenecks  or  weak  points  to  be 
identified.  In  October  2018,  Bulgaria  asked  for  assistance  from  the  European 
Commission's Structural Reform Support Service to help it advance the reform of the 
insolvency  framework.  This  project  identifies  gaps  in  the  insolvency  framework  and 
will  produce  a  roadmap  to  address  them.  It  is  important  to  sustain  the  reform 
momentum and implement the forthcoming roadmap. 

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(11)  Bulgaria has adopted legislative amendments in 2018 and is working towards a fully 
conform  transposition  of  the  Directive  2015/849  (Fourth  Anti-Money  Laundering 
Directive). Attention should be paid to the effective implementation of these measures. 
The  authorities  have  still  not  finalised  and  notified  the  National  Risk  Assessment, 
which  is  a  cornerstone  to  devising  adequate  national  policies  to  combat  money 
laundering  and  terrorist  financing.  Moreover,  recent  developments  in  the  banking 
sector  suggest  that  there  is  need  to  enhance  the  national  supervision  of  international 
financial  transactions  and  to  ensure  the  effective  enforcement  of  the  anti-money 
laundering framework. The risk of corruption needs to  be better addressed, as  it is  a 
predicate  offence  to  money  laundering.  The  Bulgarian  authorities  will  need  to  show 
concrete  results  and  build  a  track  record  evidenced  by  final  decisions  in  high  level 
corruption cases. The use of financial investigation and financial profiling is limited. 

(12)  Non-bank  supervision  is  being  reformed.  The  Financial  Supervision  Commission 
adopted  an  action  plan  for  reforming  non-bank  financial  supervision  in  September 
2017,  in  cooperation  with  the  European  Insurance  and  Occupational  Pensions 
Authority. The full and timely implementation and enforcement of the action plan, still 
ongoing, will contribute  to  adequate supervision  of the non-banking financial sector. 
Amendments  to  secondary  legislation  are  in  place,  aiming  to  improve  the  valuation 
rules  and  their  application.  Their  effective  implementation  and  enforcement  would 
address remaining valuation issues that have been identified in the past. Lastly, group-
level  supervision  remains  a  challenge  for  ensuring  an  adequate  risk-based  insurance 
supervision.  

(13)  The  car  insurance  sector  presents  some  vulnerabilities.  Well-specified  rules  on 
compensation would facilitate a more harmonised approach by judges when deciding 
on  individual  cases.  In  the  longer  term,  such  a  methodology  would  help  to  reduce 
costs, volatility and underwriting risk in the motor third-party liability line of business. 
The  sustainability  of  the  sector  would  also  benefit  from  improved  pricing  that  takes 
into  account  clients'  driving  history.  The  Financial  Supervision  Commission  has 
proposed  a  bonus-malus  system,  which  is  undergoing  broad  public  debate  with  an 
uncertain  outcome.  Lastly,  the  liquidity  of  the  ‘Green  Card  Bureau’  has  raised 
substantial  concerns,  mainly  due  to  the  non-payment  of  claims  by  two  Bulgarian 
insurers.  Strict  compliance  of  all  members  with  their  obligations  is  crucial  for  the 
credibility and efficiency of the system. 

(14) 

Infrastructure  suffers  from  major  investment  gaps.  The  coverage  and  quality  of 
transport infrastructure have improved but remain below the EU average. The Trans-
European  Transport  Network  in  Bulgaria  is  still  incomplete.  Moreover,  greenhouse 
gas emissions from road transport have increased strongly over the last 5 years. There 
is a need for further development of rail and road sections and the respective European 
rail  traffic  management  systems  and  intelligent  transport  systems.  Bulgaria  has  low 
connection  and  treatment  rates  for  urban  waste  water,  high  air  pollution  levels  and 
landfilling rates for municipal waste and a recycling rate, considerably lower than the 
EU  average.  Investments  to  promote  sustainable  water  management,  resource 
efficiency  and  the  transition  to  a  circular  economy  are  necessary.  In  addition, 
investment needs in the fields of energy and climate change mitigation and adaptation 
are  significant.  The  high  energy  intensity  of  the  economy  and  the  slow  progress 
towards  meeting  energy  efficiency  targets,  in  particular  in  the  buildings  sector,  are 
holding back the productivity and competitiveness of businesses in the country. Efforts 
thus need to be stepped up to ensure that significant energy savings are achieved via 
targeted  investments  in  the  industrial,  transport  and  buildings  sectors.  Increased 

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investments  in  clean  energy  infrastructure  (such  as  clean  and  low-carbon  power 
generation,  interconnections,  and  smart  grids),  in  line  with  the  priorities  outlined  in 
Bulgaria’s  draft  national  climate  and  energy  plan,  would  further  help  improve  the 
economy’s overall competitiveness and people's quality of life. 

(15)  Despite an increase in the public  research budget in 2018, research and development 
spending  remains  very  low  in  both  private  and  public  sector.  Private  research  and 
development  investment  is  dominated  by  large  multinational  companies  and 
concentrated  in  the  capital  region.  The  slow  pace  of  implementing  reforms  and  high 
fragmentation  in  the  research,  development  and  innovation  system  hampers  the 
contribution of research and development investment to productivity and growth. The 
large number of universities and research institutes continue to perform poorly in high 
quality  scientific  research.  Science-business  links  remains  very  weak  and  the 
availability  of  human  capital  in  the  research  and  development  system  is  a  source  of 
significant concern. Clusters and their potential in Bulgaria are underdeveloped as they 
often  lack  a  critical  mass.  Further  reforms,  combined  with  efficient  governance  and 
more  effective  public  investment  can  maximise  the  impact  on  productivity  and 
improve the competitiveness of the economy. In addition, increasing the digitisation of 
companies  and  introducing  new  business  models  are  critical  for  the  country’s 
productivity.  

the  main  obstacles 

labour  supply  remain  among 

(16)  Public administration and e-government reforms continue to be slow and are yielding 
insufficient improvements while the business environment remains weak. A number of 
reform  measures  have  been  adopted,  but  their  practical  implementation  is  lagging 
behind.  Institutional  shortcomings,  regulatory  uncertainty,  corruption,  and  an 
insufficient 
investment. 
Governance  in  the  public  sector  could  benefit  from  more  transparency,  clearer  rules 
and  a  long-term  perspective.  Shortcomings  are  also  apparent  in  the  area  of  product 
testing and safety due to limited financial and human resources. Moreover, while the 
vast  majority  of  measures  included  in  the  national  procurement  strategy  have  been 
adopted, their implementation requires continuous monitoring, control and assessment. 
The frequent use of direct awards and the high number of single bids represent a threat 
to  the  system's  transparency  and  effectiveness.  The  public  procurement  sector's 
administrative capacity is an ongoing challenge, as are also the professionalisation of 
public  buyers  and  aggregated  purchases.  The  significant  delay  in  the  uptake  of 
electronic  procurement  is  preventing  further  improvement  in  the  transparency  and 
efficiency of public procurement processes. 

to 

(17)  The  labour  market  has  improved  but  challenges  remain.  The  employment  rate  has 
reached the highest level since Bulgaria joined the EU and the unemployment rate is 
below the EU average. Despite these positive developments, some groups such as the 
low-skilled,  young people, Roma and people with disabilities still face difficulties to 
find  work.  Specific  measures  are  being  implemented  to  support  the  long-term 
unemployed,  who  represent  3 %  of  the  active  population  in  2018.  A  combination  of 
effective and sustained outreach measures, active labour market policies and integrated 
employment  and  social  services  could  improve  disadvantaged  groups'  employability 
and chances of finding work.  

(18)  Bulgaria's  increasing  skills  shortages  warrant  significant  investments.  Young  people 
might  be  more  employable  if  the  quality  and  effectiveness  of  traineeships  and 
apprenticeships  were  improved.  Moreover,  the  participation  in  upskilling  and 
reskilling  measures  among  the  adult  population  is  very  low.  Despite  measures 
launched  to  encourage  the  development  of  digital  skills,  Bulgaria's  level  of  basic 

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digital skills (29% of individuals possess basic digital skills against an EU average of 
57%) remains among the lowest in the EU. 

(19)  Despite  the  ratification  of  the  International  Labour  Organization's  Convention 
concerning Minimum Wage Fixing and of several rounds of negotiations during 2018, 
employers  and  trade  unions  still  have  diverging  views  on  the  criteria  to  be  applied 
when  setting  the  minimum  wage.  There  is  scope  for  greater  consensus  about  an 
objective  and  transparent  wage  setting  mechanism.  Meanwhile,  although  the 
involvement  of  the  social  partners  in  the  design  and  implementation  of  policies  and 
reforms seems to have increased, continuous support for a reinforced social dialogue 
remains necessary. 

to 

(20)  Educational outcomes are still low and continue to be strongly influenced by parents' 
the  quality  and 
socio-economic  status.  This  reflects  challenges  relating 
inclusiveness  of  the  education  and  training  system.  Bulgaria  invests  insufficiently  in 
education,  particularly  in  pre-primary  and  primary  education,  two  areas  that  are 
instrumental to creating equal opportunities from an early age. Participation in quality 
early  childhood education and  care is  low, in  particular for Roma  and  children from 
other disadvantaged groups. The rate of early school leaving is still high, with negative 
consequences for future employability and labour market outcomes. The labour market 
relevance of vocational  education and training and the availability of dual vocational 
education  and  training  remain  insufficient.  While  some  measures  are  underway, 
further efforts are needed to ensure that the skill set of higher education graduates can 
address  short-  and  mid-term  skills  shortages  in  a  consistent  way.  Some  measures  to 
retrain  teachers  and  make  the  profession  more  attractive  have  been  put  in  place. 
However,  initial  and  continuous  education  programmes  for  teachers  require  further 
strengthening  and  efforts  are  still  needed  to  improve  the  working  conditions  of 
education staff. 

(21)  Bulgaria is still facing high income inequality and risk of poverty or social exclusion. 
Though  decreasing,  the  rate  of  poverty  or  social  exclusion  in  2018  was  32.8 %,  still 
well  above  the  EU  average.  The  social  security  system  does  not  cover  all  people  in 
employment  and  the  social  protection  system  is  insufficient  to  tackle  the  significant 
social issues. This reflects the low level of social spending, the uneven availability of 
social services across the territory and the limited redistributive effects of the taxation 
system.  In  2018,  the  income  of  the  richest  20 %  of  population  was  7.7  times  higher 
than  that  of  the  poorest  20 %,  still  one  of  the  highest  in  the  EU.  Despite  some 
measures, the adequacy and coverage of the minimum income remain limited and an 
objective  mechanism  for  regularly  updating  it  is  still  missing.  Social  services  are 
hampered by low quality and lack of an integrated approach towards active inclusion. 
Disparities  in  access  to  social  services,  healthcare  and  long-term  care  persist.  This 
undermines  their  ability  to  provide  comprehensive  support  for  the  most  vulnerable, 
such as the Roma, children, the elderly, persons with disabilities and people living in 
rural areas. Part of the population has difficulty getting access to affordable housing. 
More  efforts  are  therefore  needed  to  foster  active  inclusion,  promote  the  socio-
economic  integration  of  vulnerable  groups  including  the  Roma,  enhance  access  to 
quality services and address material deprivation. 

(22)  The healthcare sector is still characterised by low public spending. People in Bulgaria 
face limited access to healthcare caused by an uneven distribution of limited resources 
and low health insurance coverage. Out-of-pocket payments are considerable, as they 
need  to  compensate  for  the  low  level  of  public  expenditure.  The  low  availability  of 
general practitioners is constraining the delivery of primary care. There is a significant 

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shortage of nurses with the number per capita among the lowest in the EU. Swifter and 
more effective implementation of the national health strategy would help tackle these 
weaknesses. 

(23)  Under  the  Cooperation  and  Verification  Mechanism,  the  Commission  continues  to 
monitor  the  judicial  reform  and  the  fight  against  corruption  and  organised  crime  in 
Bulgaria.  These  areas  are 
the  country-specific 
recommendations  for  Bulgaria,  but  are  relevant  for  the  development  of  a  positive 
business  environment  in  the  country.  The  November  2018  Cooperation  and 
Verification Mechanism report noted that Bulgaria had continued its efforts to reform 
its  judiciary  and  address  shortcomings  in  the  fight  against  corruption  and  organised 
crime,  but  that  further  efforts  were  needed  in  a  number  of  areas.  The  Commission 
expects to assess progress again in early autumn 2019. 

therefore  not  covered 

in 

(24)  The programming of EU funds for the period 2021-2027 could help address some of 
the  gaps  identified  in  the  recommendations,  in  particular  in  the  areas  covered  by 
Annex  D  to  the  country  report8.  This  would  allow  Bulgaria  to  make  the  best  use  of 
those funds in respect of the identified sectors, taking into account regional disparities. 
Strengthening the country’s administrative capacity for the management of these funds 
is an important factor for the success of this investment. 

(25) 

(26) 

(27) 

In  the  context  of  the  2019  European  Semester,  the  Commission  has  carried  out  a 
comprehensive  analysis  of  Bulgaria’s  economic  policy  and  published  it  in  the  2019 
country  report.  It  has  also  assessed  the  2019  Convergence  Programme  and  the  2019 
National  Reform  Programme  and  the  follow-up  given  to  the  recommendations 
addressed  to  Bulgaria  in  previous  years.  It  has  taken  into  account  not  only  their 
relevance  for  sustainable  fiscal  and  socioeconomic  policy  in  Bulgaria,  but  also  their 
compliance with Union rules and guidance, given the need to strengthen the Union’s 
overall  economic  governance  by  providing  Union-level  input  into  future  national 
decisions.  

In  the  light  of  this  assessment,  the  Council  has  examined  the  2019  Convergence 
Programme and is of the opinion that Bulgaria is expected to comply with the Stability 
and Growth Pact. 

In the light of the Commission’s in-depth review and this assessment, the Council has 
examined  the  2019  National  Reform  Programme  and  the  2019  Convergence 
Programme.  Its  recommendations  under  Article  6  of  Regulation  (EU)  No  1176/2011 
are reflected in recommendation (2) below. 

HEREBY RECOMMENDS that Bulgaria take action in 2019 and 2020 to: 

1. 

2. 

Improve  tax  collection  through  targeted  measures  in  areas  such  as  fuel  and  labour 
taxes.  Upgrade  the  state-owned  enterprise  corporate  governance  by  adopting  and 
putting into effect the forthcoming legislation. 

Ensure  the  stability  of  the  banking  sector  by  reinforcing  supervision,  promoting 
adequate valuation of assets, including bank collateral  and promoting  a functioning 
secondary  market  for  non-performing  loans.  Ensure  effective  supervision  and  the 
enforcement of the Anti-Money Laundering framework. Strengthen the non-banking 
financial sector by effectively enforcing risk-based supervision, the recently adopted 
valuation  guidelines  and  group-level  supervision.  Implement  the  forthcoming 
roadmap  tackling  the  gaps  identified  in  the  insolvency  framework.  Foster  the 

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SWD(2019) 1001 final. 

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3. 

4. 

stability of the car insurance sector, by addressing market challenges and remaining 
structural weaknesses.  

Focus  investment-related  economic  policy  on  research  and  innovation,  transport, 
notably  on  its  sustainability,  water,  waste  and  energy  infrastructure  and  energy 
efficiency,  taking  into  account  regional  disparities,  and  improving  the  business 
environment. 

Strengthen  employability  by  reinforcing  skills,  including  digital  skills.  Improve  the 
quality,  labour  market  relevance,  and  inclusiveness  of  education  and  training,  in 
particular  for  Roma  and  other  disadvantaged  groups.  Address  social  inclusion 
through  improved  access  to  integrated  employment  and  social  services  and  more 
effective minimum income support. Improve access to health services, including by 
reducing out-of-pocket payments and addressing shortages of health professionals.  

Done at Brussels, 

For the Council 
The President 

EN 

8 

  EN