EU would apply the strictest conditions ever to a new member for Bulgaria and Romania's EU entry, The Financial Times (FT) reported.

Enlargement commissioner Olli Rehn and  European Commission president Jose Manuel Barroso were expected to warn Bulgaria that it would be “under unprecedented scrutiny in the coming months”,  FT said.

Bulgaria would face possible legal and financial sanctions if it failed to prove serious fight against organised crime and corruption, FT said.

Rehn and Barroso were against the idea of postponing Bulgaria and Romania's entry as it would discourage the reforms in the two countries, FT said. The best way to achieve results was to “ work with them with the threat of these measures”, a senior European Commission official said.

Rehn would present his report on Bulgaria and Romania's progress on September 26.