07.07.2022

THE EUROPEAN COMMISSION ADOPTED A PARTNERSHIP AGREEMENT WITH BULGARIA WORTH 11 BILLION EUROS

The European Commission adopted a partnership agreement with Bulgaria worth EUR 11 billion - it defines the country's investment strategy in the field of cohesion policy for the period 2021-2027. Funds under the cohesion policy will promote the economic, social and territorial convergence in the Bulgarian regions and will help to fulfill the EU's main priorities, such as the ecological and digital transition. These funds will also support policy areas in which Bulgaria has the potential to make progress and reduce regional differences within the country.

The partnership agreement covers the European Regional Development Fund - ERDF, the European Social Fund Plus - ESF+, the Cohesion Fund, the Just Transition Fund, and the European Maritime, Fisheries and Aquaculture Fund.

The ecological transition and reduction of energy dependence

2.4 billion euros from the ERDF and the Cohesion Fund will help Bulgaria achieve its climate goals.

Specifically, €600 million will help increase the share of renewable energy sources to 27% of total energy consumption, as well as reduce energy consumption and greenhouse gas emissions in public buildings. ERDF funding will also be used to recycle 70% of all packaging waste.

In addition, investments will also be aimed at reducing by more than a third (at least 35%) the proportion of the population living at risk of natural disasters such as floods or forest fires.

The FSP will provide €1.3 billion to ensure a socially and economically sustainable transition. The fund will improve the capacity of the affected territories to better use energy from renewable sources.

Catching up with the EU and supporting the most vulnerable regions

The funds will also help Bulgaria improve its basic infrastructure, especially in regions where infrastructure investment is insufficient or absent. Almost half of the total cohesion policy funding (€4.2 billion) will be invested in the north-west, north-central and north-east regions, including in the form of co-financing for the construction of the Shipka tunnel - the first tunnel that will pass through Stara Planina.

EU support for the favorable business environment is also expected to increase the share of innovative small and medium-sized enterprises from 27.2% in 2016 to 32% in 2026 - they will create jobs and contribute to the development of the Bulgarian economy.

Jobs of the future: a more inclusive and digital labor market

Bulgaria will invest EUR 2.6 billion from the ESF+ with the aim of improving access to employment, increasing skills so that people can successfully navigate the dual ecological and digital transition, as well as guaranteeing equal access to quality and inclusive education and training. This includes EUR 315 million to support youth employment and EUR 630 million for social inclusion measures, of which EUR 136 million is earmarked for combating child poverty. 221 million euros will be directed to the socio-economic integration of marginalized communities, for example the Roma.

Thanks to EU funding, early school leaving is expected to fall from 12.8% to 7% by 2030. Adult participation in learning activities is expected to rise from 24.6% to 35.4%, while employment is expected to to increase from 73% to 79%. The population at risk of poverty and social exclusion is expected to decrease by 0.8 million people (from 2.3 to 1.5 million people).

Finally, Bulgaria aims to exceed the target set at the Porto Summit in terms of employment rates, and the number of people at risk of poverty and social exclusion in the country should decrease by almost 800,000.

Sustainable fisheries and sustainable aquaculture

EFMDRA will invest around 84.9 million euros in more sustainable fisheries and restoration and protection of aquatic biological resources in the Black Sea. Support will also be provided for the development of a sustainable aquaculture and processing sector, including local fisheries and aquaculture communities, and the implementation of international ocean governance. All actions receiving support will contribute to the objectives of the Common Fisheries Policy as well as to the key EU policy priorities outlined in the European Green Deal, the Farm to Fork Strategy and the Biodiversity Strategy.

Statements by members of the collegium:

Commissioner for Cohesion and Reforms, Eliza Ferreira, said: The Partnership Agreement marks a decisive step for Bulgaria. Cohesion policy funding in the period 2021-2027 will be essential to reduce regional disparities in the country and promote growth convergence with the rest of the EU. We are now looking forward to the conclusion of the negotiations on the ten national programs so that investments in key areas such as a clean environment, better education, support for businesses and transport infrastructure can start as soon as possible under cohesion policy.

Commissioner for Jobs and Social Rights Nicola Schmitt said: The objectives of the Partnership Agreement with Bulgaria show a firm commitment to achieving the Porto social goals of employment, lifelong learning and poverty reduction. By investing ESF+ funds in people, Bulgaria will increase social inclusion and improve access to the labor market, especially for people who are vulnerable or disadvantaged.

Environment, Oceans and Fisheries Commissioner Virginijus Sinkevičius said: The European Maritime, Fisheries and Aquaculture Fund plays a crucial role in supporting coastal communities, easing the impact of the crisis on the fisheries sector and decarbonising our economy. It supports innovative projects that contribute to the sustainable use and management of water and marine resources. This partnership agreement underpins Bulgaria's commitment to advance the environmental and digital transition by building low-carbon, sustainable and innovative fisheries and aquaculture sectors and supporting the development of the blue economy in coastal communities. It will also support the resilience of sectors challenged by extraordinary events causing significant market disruptions.

Context

The partnership agreement with Bulgaria covers 10 national programs. It also covers the eligibility and implementation of the FSP in three Bulgarian regions, which are most affected by the climate transition.

Within the framework of the cohesion policy and in cooperation with the Commission, each member state prepares a partnership agreement - a strategic document for programming the investments from the cohesion policy funds (the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund and the Just Transition Fund) and from the European Maritime, Fisheries and Aquaculture Fund during the Multiannual Financial Framework. It focuses on EU priorities, setting out the strategy and investment priorities chosen by the Member State and presenting a list of national and regional implementation programs by location, including a preliminary annual allocation of funds for each programme.

The partnership agreement with Bulgaria is the twelfth agreement for the 2021-2027 funding period, following those already adopted for Greece, Germany, Austria, the Czech Republic, Lithuania, Finland, Denmark, France, Sweden, the Netherlands and Poland.

According to the General Provisions Regulation for the period 2021-2027, Member States must fulfill the so-called horizontal and thematic enabling conditions in the implementation of cohesion policy programmes. One of the enabling conditions requires compliance with the EU Charter of Fundamental Rights. When drawing up their programmes, Member States must assess whether the enabling conditions are met. If the Commission does not agree with this assessment, it cannot reimburse the costs associated with the parts of the program concerned until the conditions are met. Member States must ensure that they continue to meet these conditions throughout the program period.