The September 26 European Commission report was expected to confirm Bulgaria and Romania's on-time EU entry on January 1 2007 but under strict conditions.

EC's recommendation needed to be approved in October. Apart from the entry date, the document would list reforms that the two countries have failed implementing so far, Bulgarian News Agency BTA reported.

In case some of the reforms are not finalised in time, the two countries would be deprived of EU funding in the critical areas, BTA reported.

Bulgaria and Romania achieved progress meeting EU accession criteria, Reuters news agency reported. The agency quoted a draft EC report saying that both countries would be monitored strictly in the justice and home affairs sector as decisive anti-corruption measures were still missing.

Sofia and Bucharest would have to report on progress in such areas every six months, Reuters said.
The two countries would also have to work on mechanisms for utilising EU funds in sectors like agriculture. Part of the funds would be kept idle until such mechanisms started functioning.

Bulgaria would also be urged to amend its constitution to guarantee the independence and accountability of the judicial system, Reuters said.