Bulgaria to Lose 500 million euros in EU Funding

Bulgaria is likely to lose €500 million in European Union funding over its failure to tackle crime and corruption, the Reuters news agency reports citing anonymous sources.

Bulgarian authorities will also be warned by the European Commission that they could lose more money if they do not intensify their efforts to tackle corruption. Sofia could face further financial sanctions, as the agencies in charge of the EU funds could be frozen or their accreditations suspended.

According to Reuters' anonymous source, the European Commission on July 23 will issue three reports – one on corruption and organised crime, one on the judiciary and the other on how EU newcomers Bulgaria and Romania are managing the adoption of EU funds. The reports' drafts are strictly confidential and even the countries' governments are not familiar with them, Reuters reports.

Although both Balkan countries will be highly criticised for failing to tackle corruption and major problems at the judiciary, only Sofia is anticipated to face financial sanctions.

Under an investigation by the EU's anti-corruption body, Olaf, Sofia has already been forced to freeze EU funding in three key project areas – on access to agricultural markets, technical support and road infrastructure. The funding of these projects will be lost, according to Reuters.