The European Commission has positively assessed Bulgaria's fourth payment request under the Recovery and Resilience Facility (RRF), the main element of the NextGenerationEU instrument.
In the ex-ante assessment adopted today, the Commission found that Bulgaria has satisfactorily implemented 23 of the 26 milestones and targets set out in the Council Implementing Decision.
The reforms and investments related to this payment request will bring about positive change for citizens and businesses in areas such as the fight against corruption, the digitalisation of administrative justice, vocational education and training, support for small and medium-sized enterprises, sustainable transport, decarbonisation and renewable energy, agriculture and outpatient care.
The flagship measures included in this request for payment, are:
Anti-corruption measures, including the adoption of legislation to establish a politically and financially independent Anti-Corruption Commission with functions to prevent and combat corruption among persons holding public offices, as well as the introduction of rules to regulate lobbying activities.
Decarbonization measures in the energy sector. These include improving the corporate governance of state-owned energy companies through the restructuring of the Bulgarian Energy Holding (BEH), in order to avoid the risk of cross-subsidization of coal-related activities and to align its structure with the future needs of the energy market in Bulgaria. In addition, a National Decarbonisation Fund was established to support the energy efficiency of buildings, with a fund manager appointed and rules for its operation introduced.
Promoting renewable energy by supporting nearly 1,400 domestic solar hot water systems or photovoltaic systems for electricity production in households.
A new public service contract for public rail transport aimed at improving its quality, accessibility and use by passengers, along with a modernised legal framework to promote zero- and low-emission transport, including new rules on electric mobility and low-emission zones.
Unmet key milestones and targets
The Commission found that one key milestone - related to the entry into force of the legislation on water supply and sanitation - had not been fully met. Bulgaria also declared that one target related to support for the cultural sector has not yet been achieved, but plans to meet it by the deadline of 31 August 2026. Furthermore, the wording of one of the milestones in the area of public transport is not sufficiently clear and Bulgaria was invited to submit a reasoned request for a revision of its plan.
Bulgaria will be granted additional time to implement the remaining commitments, while it will receive a partial payment for the milestones and targets that have been successfully met.
This procedure is in line with the MFF Regulation and the Commission's guidelines for its implementation published on 21 February 2023.
Next steps
The Commission has sent its ex-ante assessment of Bulgaria's implementation of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), which has four weeks to submit its its opinion.
In parallel, the Commission has informed Bulgaria of the reasons why it considers that the milestones and targets mentioned above have not been satisfactorily implemented. Bulgaria has one month to respond to this assessment.
If, following Bulgaria's response, the Commission confirms its assessment that the milestones and targets in question have not been satisfactorily implemented, it will withhold the relevant part of the payment. The amount of the withholding will be determined on the basis of the significance of the unfulfilled milestones and targets, in accordance with the methodology set out in the Commission's Communication of 21 February 2023. Bulgaria will then have until 31 August 2026 to fulfil the remaining commitments. In the event of successful implementation, the withholding will be lifted and the funds will be disbursed.
The disbursement of the funds to Bulgaria for the milestones and targets already approved may be made following a positive opinion by the EFC and the adoption of a payment decision by the Commission.