These are edited extracts from last week's report by the European Commission on Bulgaria's progress towards European Union accession.
OVER the past year, Bulgaria has continued to make good progress in most areas of the acquis and is on track to complete the required legislative transposition before the planned date of accession if the current pace of progress is maintained.
Regarding the internal market, Bulgaria made further progress in most areas. In free movement of goods, progress continued with the adoption of sector-specific legislation in the area covered by New Approach directives. In the sectors covered by Old Approach directives, progress was recorded notably as regards data protection for pharmaceuticals.
While progress has been recorded in the area of food safety, further efforts are needed both on transposition and administrative capacity. In the non-harmonised area, Bulgaria should continue screening for measures that may be incompatible with the principle of free movement of goods. As to public procurement, further efforts are necessary to align with the acquis and to build up the necessary administrative capacity.
As regards free movement of persons, progress was limited and considerable further work is needed concerning mutual recognition of qualifications (especially as regards curricula and training requirements) and the establishment of the necessary administrative bodies for the future co-ordination of social security systems. Concerning the right of establishment and freedom to provide services, Bulgaria made further progress as regards the non-discriminatory regime of national treatment for foreigners performing economic activities in Bulgaria. The establishment of the Financial Supervision Commission is an important step towards strengthening supervision. Further efforts are required as regards data protection and information-society services. In the area of free movement of capital, Bulgaria has made good progress in adopting new legislation on capital movements and payments, and anti-money laundering.
Company law was further aligned with the acquis. The focus should now be put on the enforcement of legislation on the protection of intellectual and industrial property rights, notably through better co-ordination between competent authorities. Further progress was recorded in the field of competition policy, where the legal framework for both anti-trust rules and state aid was consolidated. Further efforts are required to enhance the state aid enforcement record. Bulgaria also needs to restructure its steel sector in line with the relevant provisions of the Europe Agreement. Regarding agriculture, Bulgaria has made considerable progress in adopting legislation in particular in the veterinary and phytosanitary sector. Administrative structures have been further consolidated and strengthened although further improvements are needed.
Substantial work is still ahead in order for Bulgaria to meet EU veterinary and phytosanitary control and hygiene standards. Bulgaria has achieved a reasonable degree of legislative alignment in field of fisheries. However, further progress is needed with regard to technical capacity of inspection and control systems as well as with regard to compliance with EU hygiene and health requirements.
Bulgaria has continued to make progress in aligning transport legislation with the acquis and has made efforts to improve its maritime safety record. These efforts should continue. The administrative structures in the road, railway and maritime areas need to be strengthened. Attention needs to be paid to ensuring the financing for important investments necessary in this sector, notably for upgrading the road network.
As regards taxation, positive developments were reported in the areas of VAT and excise duties, where new legislation was adopted. However, significant further efforts are needed to strengthen the tax administration. Attention should be paid to improving tax collection, enhancing internal control, ensuring that the computerised tax information system is fully operational, and completing preparations for interconnectivity with EU IT systems.
On social policy and employment, some progress has been made, particularly in the area of anti-discrimination policy. However, further work remains on legal transposition, particularly in the areas of labour law, health and safety at work and public health.
Administrative capacity needs to be strengthened.
Reforms in the energy sector progressed, although important legislation preparing for the internal market and setting up a framework for energy efficiency has not yet been adopted. The preparation for privatisation of the distribution companies has advanced.
Bulgaria must continue to respect its commitments on nuclear safety, notably as regards closure commitments for Kozlodui nuclear power plant and to ensure a high level of nuclear safety in its installations.
Bulgaria has significantly progressed in aligning with the telecommunications acquis through the adoption of a new telecommunications law. Efforts should now focus on implementation and further enhancing the capacity of the regulator.
Concerning regional policy and co-ordination of structural instruments, Bulgaria has made some progress with regard to preparations for the implementation of Structural and Cohesion Funds, notably with institutional structures and programming. Considerable efforts are still needed to develop, consolidate or complete institutional structures and to bring administrative capacity (including staffing and training) and procedures up to the level required. Priority should also be given to the introduction of efficient and fully transparent procurement and financial management and control systems as well as to monitoring and evaluation systems and to the strengthening of inter-ministerial coordination.
Bulgaria has reached a good level of alignment of the environmental acquis and has developed directive-specific implementation plans and financing strategies. The continuous efforts to develop administrative capacities, notably at local level, and further elaborate mechanisms to monitor effective implementation should be maintained.
Implementation remains a major challenge, as is the need for increased administrative capacity and the cost of alignment.
Some progress has been made in further aligning Bulgaria's legislation with the acquis in the area of consumer and health protection. Bulgaria needs to finalise its legislative framework, particularly in the area of non-safety related measures. Further efforts are needed to put in place an efficient market surveillance mechanism.
Further good progress could be noted in the area of justice and home affairs. The new legislation adopted in the areas of data protection, visa, migration, asylum and money laundering almost completed alignment with the acquis. Substantial further efforts are needed to further strengthen the judicial system, through a continuation of the reforms.
Particular attention should be given to combating drugs and illegal migration.
For customs, a good degree of legal alignment has been reached and progress was noted concerning administrative and operational capacity and concerning computerisation.
These efforts should continue. Measures were taken in the framework of the anticorruption strategy.
Significant further progress has been made in strengthening financial control in Bulgaria, developing further the entire legal basis and the necessary administrative capacity.
Further work should now focus on implementation of legislation and further strengthening of the required institutional structures, inter alia for the protection of the EU financial interests.
Steady progress is being made in the other chapters of the acquis.
Bulgaria needs to continue to make sustained efforts to develop sufficient administrative and judicial capacity to implement and enforce the acquis. As well as continuing horizontal reform of the public administration, it needs to focus in particular on developing the capacity to be part of the internal market and to apply the acquis in areas such as agriculture, environment and regional policy. Continued efforts are required to establish the necessary administrative capacity to ensure the sound and efficient management of EU funds. In the accession negotiations, 26 chapters have been provisionally closed. The commitments made in the negotiations are with a view to accession in 2007. They are generally being met, although delays have been noted in certain specific areas.
Bulgaria continues to fulfil the Copenhagen political criteria.
Progress was made with the adoption of a programme and an action plan for the implementation of the Strategy for Modernisation of the State Administration, which aim at consolidating the legal framework in this area. Sustained efforts will be necessary to further implement the public administration reform and to fulfil Bulgaria's aim to have a qualified and efficient civil service in place in the medium term, to ensure the effective application and enforcement of the acquis when Bulgaria joins the Union.
The overall reform process for the judiciary continued in line with the 2002 Action Plan.
In particular, the amendments to the Constitution regarding the status of magistrates, represent an important step forward. Other legislative measures aim at reducing the duration of court proceedings and strengthening judicial control of decisions of the executive. However, further efforts are necessary to re-organise the investigation service as part of the executive in line with best practice in Member States. Bulgaria also needs to ensure that the judicial budget is adequate for the smooth functioning of the judicial system.
Corruption remains a problem, and Bulgaria should maintain concerted efforts to implement measures in this respect. The fight against corruption remained high on the political agenda and further measures in this context were adopted.
Bulgaria continues to respect human rights and fundamental freedoms.
The legal framework for asylum and child protection improved considerably. However, the living conditions of children placed in institutions changed little during the past year.
As regards the mentally disabled, the required legal framework is still missing, notably to ban arbitrary detention. Despite some efforts to address the situation, the living conditions in institutions for mentally disabled are difficult and opportunities for rehabilitation and therapy are scarce. Further efforts are necessary to address the situation as regards degrading treatment by the police and trafficking in human beings. In the area of social and economic rights, progress can be reported notably as regards equal opportunities and anti-discrimination.
The new Action Plan for the implementation of the "Framework Programme for Equal Integration of Roma into Bulgarian Society" represents a positive step, as specific budgetary support is provided for measures in the areas of anti-discrimination, education, culture, housing, employment and social protection. Determined and sustained efforts are needed to fight discriminatory attitudes and behaviour and to address the widespread social disadvantage affecting the Roma community.
Bulgaria is a functioning market economy. It should be able to cope with competitive pressure and market forces within the Union in the near term, provided that it continues implementing its reform programme to remove remaining difficulties.
The Bulgarian economy has achieved a high degree of macroeconomic stability due to a good policy-mix brought about by the currency board arrangement, a tight fiscal stance and wage moderation. Economic stability and good progress in structural reforms allow market mechanisms to provide a more efficient allocation of resources which, in the absence of the nominal exchange rate as an instrument for adjustment, is setting the basis for a process of sustained growth. This holds in particular for the increasing role of the private sector through privatisation and the reduction of state aid, the positive development of the banking sector and some improvements in the regulatory environment.
However, the flexibility of product and labour markets needs to be further enhanced. In particular, the efficiency of the administrative and judicial system has to be improved, providing economic agents a more stable and predictable framework and better ability to enforce their property rights. The privatisation programme needs to be completed.
Regulations and administrative procedures affecting enterprises must be further streamlined, also to provide more viable conditions for small and medium-sized enterprises. The restructuring and liberalisation of the network industries needs to further advance in order to reduce subsidies, to enhance quality and allow for a reduction of the prices of their services. The ongoing reduction in unemployment should be further supported by addressing rigidities in the labour market and improving the education system. Implementing these reform measures should contribute to higher levels of private and public investment, thereby contributing to sustained growth and competitiveness within the Union.
Political criteria
Recent developments
The political situation has remained stable over the past year.
Accession to the European Union remains high on the political agenda of the government and enjoys broad political and public support. Efforts to make progress in accession preparations have been intensified.
The Protocol on Bulgaria's accession to NATO was signed in March 2003.
In September 2003, an important amendment to the constitution was adopted, introducing a number of changes in the context of the further reform of the judicial system.
1.2 Democracy and the rule of law
Bulgaria has achieved stability of institutions guaranteeing democracy and the rule of law. This was the conclusion of the 1997 Opinion and the subsequent Regular Reports, and has been confirmed by developments over the past year. This section focuses on the most significant developments since the last Regular Report.
Parliament continues to function satisfactorily. The overall law-making process is advancing steadily, with good results as to further alignment with the acquis.
With the formation of a new parliamentary group, there are now five political groupings represented in Parliament.
The Directorate for Legislation and European Law established in April 2002 has ensured that legal expertise on EC law is available at all stages of the parliamentary process. This should help to bring about an improvement in the quality of legislation. Continued attention should be paid to ensuring adequate staffing.
In May 2003, an ad hoc parliamentary commission was mandated to draft certain changes to the Constitution; these are needed to implement further necessary reforms and to align with the practices in EU Member States, in particular as regards the judiciary. This work resulted in the adoption of an important amendment to the Constitution.
In line with the Strategy for Modernisation of the State Administration of June 2002, the reform of the Bulgarian public administration has made progress with the adoption of certain pieces of legislation. Further legislation remains to be adopted. Overall, sustained efforts will be required in order to achieve the ambitious objective of the Strategy, which is to have a qualified and efficient civil service in place in the medium term.
The main structural changes to the organisation of the Government since the last Regular Report are the creation of a Ministry for Youth and Sport in October 2002 and of a Council for the Modernisation of the State Administration in March 2003.
The specific structures for co-ordinating European integration have remained the same as those described in the previous Regular Report. They continue to function well. In addition, a Deputy Prime Minister for European affairs was nominated in July 2003. He is chairman of the Council for European Integration, the Council for Nato and the Council for the Modernisation of the State Administration.
To proceed with the reform of the state administration, a programme and an action plan for the implementation of the Strategy for Modernisation of the State Administration were adopted in January 2003. The programme provides for the establishment of a Council for the Modernisation of the State Administration, which is responsible for the management and control of the action plan. The Council reports directly to the Council of Ministers and is chaired by the Deputy Prime Minister in charge of EU integration. The Council is assisted by an administrative unit within the "State Administration" Directorate of the Council of Ministers, which has, however, only one permanent member of staff.
The action plan sets out changes to several pieces of legislation, such as changes to the laws on the Civil Service and on Administration and the new law on limiting the Administrative Regulation and Administrative Control of Economic Activity.
The latter law was adopted in June 2003 and aims to increase transparency in administrative decision-making as well as positive administrative silence in certain cases.
It also regulates the legal procedures applicable for obtaining different licences and permits, such as business authorisations and building permits.
The amendment to the Civil Service law adopted in early October 2003 provides for new conditions for entering the Civil Service (requirements in terms of professional experience, compulsory competition), better career opportunities based on merit, the introduction of a salary system linked to performance, the right to training (including mechanisms for its funding), the revision of the code of conduct and procedures for the prevention of conflicts of interests.
The envisaged amendments to the law on Administration are not yet adopted. In view of increasing the openness and transparency of public information, the Law on Access to Public Information was amended in May 2003 expanding the range of public institutions that are mandated to provide public information. As a new measure, an administrative appeal against refusal (including silent refusal) of access to public information is introduced in addition to an appeal at court level. The term "public information" was redefined in order to reduce the scope for discretionary judgements by the persons responsible for ensuring access to public information. Requests for access to public information have increased by around 40 per cent compared to the previous reporting period. Most administrative units have a focal point for dealing with such requests.
The legal framework for creating the institution of an Ombudsman was adopted by Parliament in May 2003 and will enter into force in January 2004. The Parliamentary Ombudsman and his Deputy will be in charge of investigating violations of citizens' rights and liberties by state or municipal bodies and their administrations, as well as by persons who provide public services. In this context, they are entitled to access and receive any relevant data for inspection. Financial independence is provided for, as well as immunity. The Ombudsman and his deputy are elected for five years by a simple majority of votes in Parliament. They are exclusively answerable to Parliament and have to present an annual report on their activity. Their opinions and recommendations will be made public. In order to improve administrative services, a "one-stop shop" concept was approved by the government in December 2002. The concept introduces standards for administrative servicing, in particular as regards the procedures for treatment of requests for public services, the improvement of access to services and better co-operation between services.
It is being piloted by five ministries. A report on the performance of the administration is published annually. It is a basis for assessing the efficiency of the state administration and for further necessary changes.
Over the reference period, the overall number of staff with civil-servant status has continued to grow and had reached 26 701 by the end of 2002, corresponding to an increase of around 32 per cent compared to the previous year. The increase concerned mainly the central administration, and a large part of it resulted from the decision of the Ministry of the Interior to grant its employees the status of civil servants. The proportion of civil servants is around 33 per cent of all employees in the public administration.
During 2003, salaries in the public sector have increased by an average of 7 per cent (3.5 per cent as of January 2003 and another 3.5 per cent as of July 2003). Additional allocations have been granted, in particular a new bonus system for staff dealing with European affairs and preaccession funds. However, salaries in the public sector still remain relatively low. In January 2003 a system of job descriptions and performance appraisals for public employees was introduced. The system provides the basis for performance-related pay.
Another priority part of the reform programme is training, and as of 2003 up to 0.8 per cent of the budget for civil servants' salaries has been made available for training purposes. The Institute for Public Administration and European Integration provided training for over 15 000 people in 2002, which represents an increase of 40 per cent compared to 2001. The Institute organises compulsory training for newly appointed civil servants as well as specialised training on European integration issues.
Progress has been made with implementation of the e-Government Strategy. Around two thirds of the state administration has been interconnected. The objective is to provide information about the work of the public administration to citizens and to facilitate compliance with legal duties.
Transparency on the legislative process has improved, thanks to more systematic consultations with civil society and economic and social partners. Since the last Regular Report, there have been several good examples of co-operation with civil society, notably in the social field and in the fight against corruptio. However, more consideration should be given on how the implementation of the acquis can also be fully ensured on regional and local level.
Continued attention should also be given to monitoring and enforcement, in particular by the court system.
Local administration is the responsibility of municipalities. Bulgaria has 263 municipalities, which are legal entities with their own budgets and property. Mayors and municipal councils are elected directly by the local community. Over the reference period, concrete steps were taken to advance the decentralisation of government functions. In September 2002, the Government decided to divide the responsibilities for delivering public services between the central and local government, including the transfers needed to finance those services that fall under local government's responsibility, notably education, health and culture. The 2003 budget marked a significant step forward, as resources to local governments for the execution of their tasks were considerably increased.
A revised Accession Partnership for Bulgaria was adopted in May 2003. The purpose of the Accession Partnership is to assist the Bulgarian authorities in their efforts to meet the accession criteria. It covers in detail the priorities for accession preparations, in particular implementing the acquis, and forms the basis for programming pre-accession assistance from Community funds such as the Phare programme.
This Accession Partnership followed two earlier documents, an action plan and a roadmap. The purpose of the action plan adopted in 2002 was to identify jointly the next steps required for Bulgaria to achieve an adequate level of administrative and judicial capacity by the time of accession; it served also as an instrument to target EU assistance in these areas. As announced in the Commission's 2002 Strategy Paper, the action plan was supplemented by a roadmap, which provides a less detailed but longer term perspective. The roadmap was developed in close consultation with Bulgaria and adopted in November 2002. It indicates the main steps that need to be taken to be ready for membership covering the whole period up to accession, with particular reference to the administrative and judicial capacity necessary to implement the acquis, and to economic reform. For the acquis chapters, the roadmap provides benchmarks against which Bulgaria's progress can be monitored. These issues were further refined in the revised Accession Partnership.
Bulgaria has begun to address the priorities defined by the revised Accession Partnership.
Overall, progress has been made, but substantial efforts are still necessary to complete the tasks foreseen for the period 2003-2004. For a number of these priorities, the government will benefit from Phare assistance, as projects directly related to these priorities have been included in the 2003 Phare programme.
With regard to the political criteria, Bulgaria has continued reforms in key areas such as public administration and the judiciary with the aim of reinforcing democracy and the rule of law. Attention should be focused on the implementation of the relevant strategies and corresponding action plans and the enforcement of legislation. While further progress can be reported in meeting the priorities relating to respect for human rights and protection of minorities, efforts are still necessary.
Bulgaria is steadily moving forward in the implementation of the priorities defined by the revised Accession Partnership with regard to the economic criteria. Good progress was made in structural reforms including the reduction of state aid and the increasing role of the private sector through privatisation, the positive development of the banking sector Council Decision 2003/396/EC of 19 May 2003 on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Bulgaria and some improvements in the regulatory environment. However, there are still a number of areas in which further efforts are needed, including notably streamlining the regulatory procedures for the enterprise sector, restructuring and liberalising the network industries and improving the efficiency and quality of the education system.
Bulgaria continues to make good progress with the adoption and implementation of the acquis. In the internal market area the priorities of the Accession Partnership have been met to a large extent, except for state aid. In all the other areas, implementation is ongoing, but further efforts will be necessary to address all the Accession Partnership priorities.
The revised Accession Partnership continues to be a main tool guiding Bulgaria's preparations for accession to the EU for the period 2003-2004. Implementation of the Accession Partnership needs to continue. It should be given the necessary political attention and should help Bulgaria to set its legislative and institution-building agenda.
OVER the past year, Bulgaria has continued to make good progress in most areas of the acquis and is on track to complete the required legislative transposition before the planned date of accession if the current pace of progress is maintained.
Regarding the internal market, Bulgaria made further progress in most areas. In free movement of goods, progress continued with the adoption of sector-specific legislation in the area covered by New Approach directives. In the sectors covered by Old Approach directives, progress was recorded notably as regards data protection for pharmaceuticals.
While progress has been recorded in the area of food safety, further efforts are needed both on transposition and administrative capacity. In the non-harmonised area, Bulgaria should continue screening for measures that may be incompatible with the principle of free movement of goods. As to public procurement, further efforts are necessary to align with the acquis and to build up the necessary administrative capacity.
As regards free movement of persons, progress was limited and considerable further work is needed concerning mutual recognition of qualifications (especially as regards curricula and training requirements) and the establishment of the necessary administrative bodies for the future co-ordination of social security systems. Concerning the right of establishment and freedom to provide services, Bulgaria made further progress as regards the non-discriminatory regime of national treatment for foreigners performing economic activities in Bulgaria. The establishment of the Financial Supervision Commission is an important step towards strengthening supervision. Further efforts are required as regards data protection and information-society services. In the area of free movement of capital, Bulgaria has made good progress in adopting new legislation on capital movements and payments, and anti-money laundering.
Company law was further aligned with the acquis. The focus should now be put on the enforcement of legislation on the protection of intellectual and industrial property rights, notably through better co-ordination between competent authorities. Further progress was recorded in the field of competition policy, where the legal framework for both anti-trust rules and state aid was consolidated. Further efforts are required to enhance the state aid enforcement record. Bulgaria also needs to restructure its steel sector in line with the relevant provisions of the Europe Agreement. Regarding agriculture, Bulgaria has made considerable progress in adopting legislation in particular in the veterinary and phytosanitary sector. Administrative structures have been further consolidated and strengthened although further improvements are needed.
Substantial work is still ahead in order for Bulgaria to meet EU veterinary and phytosanitary control and hygiene standards. Bulgaria has achieved a reasonable degree of legislative alignment in field of fisheries. However, further progress is needed with regard to technical capacity of inspection and control systems as well as with regard to compliance with EU hygiene and health requirements.
Bulgaria has continued to make progress in aligning transport legislation with the acquis and has made efforts to improve its maritime safety record. These efforts should continue. The administrative structures in the road, railway and maritime areas need to be strengthened. Attention needs to be paid to ensuring the financing for important investments necessary in this sector, notably for upgrading the road network.
As regards taxation, positive developments were reported in the areas of VAT and excise duties, where new legislation was adopted. However, significant further efforts are needed to strengthen the tax administration. Attention should be paid to improving tax collection, enhancing internal control, ensuring that the computerised tax information system is fully operational, and completing preparations for interconnectivity with EU IT systems.
On social policy and employment, some progress has been made, particularly in the area of anti-discrimination policy. However, further work remains on legal transposition, particularly in the areas of labour law, health and safety at work and public health.
Administrative capacity needs to be strengthened.
Reforms in the energy sector progressed, although important legislation preparing for the internal market and setting up a framework for energy efficiency has not yet been adopted. The preparation for privatisation of the distribution companies has advanced.
Bulgaria must continue to respect its commitments on nuclear safety, notably as regards closure commitments for Kozlodui nuclear power plant and to ensure a high level of nuclear safety in its installations.
Bulgaria has significantly progressed in aligning with the telecommunications acquis through the adoption of a new telecommunications law. Efforts should now focus on implementation and further enhancing the capacity of the regulator.
Concerning regional policy and co-ordination of structural instruments, Bulgaria has made some progress with regard to preparations for the implementation of Structural and Cohesion Funds, notably with institutional structures and programming. Considerable efforts are still needed to develop, consolidate or complete institutional structures and to bring administrative capacity (including staffing and training) and procedures up to the level required. Priority should also be given to the introduction of efficient and fully transparent procurement and financial management and control systems as well as to monitoring and evaluation systems and to the strengthening of inter-ministerial coordination.
Bulgaria has reached a good level of alignment of the environmental acquis and has developed directive-specific implementation plans and financing strategies. The continuous efforts to develop administrative capacities, notably at local level, and further elaborate mechanisms to monitor effective implementation should be maintained.
Implementation remains a major challenge, as is the need for increased administrative capacity and the cost of alignment.
Some progress has been made in further aligning Bulgaria's legislation with the acquis in the area of consumer and health protection. Bulgaria needs to finalise its legislative framework, particularly in the area of non-safety related measures. Further efforts are needed to put in place an efficient market surveillance mechanism.
Further good progress could be noted in the area of justice and home affairs. The new legislation adopted in the areas of data protection, visa, migration, asylum and money laundering almost completed alignment with the acquis. Substantial further efforts are needed to further strengthen the judicial system, through a continuation of the reforms.
Particular attention should be given to combating drugs and illegal migration.
For customs, a good degree of legal alignment has been reached and progress was noted concerning administrative and operational capacity and concerning computerisation.
These efforts should continue. Measures were taken in the framework of the anticorruption strategy.
Significant further progress has been made in strengthening financial control in Bulgaria, developing further the entire legal basis and the necessary administrative capacity.
Further work should now focus on implementation of legislation and further strengthening of the required institutional structures, inter alia for the protection of the EU financial interests.
Steady progress is being made in the other chapters of the acquis.
Bulgaria needs to continue to make sustained efforts to develop sufficient administrative and judicial capacity to implement and enforce the acquis. As well as continuing horizontal reform of the public administration, it needs to focus in particular on developing the capacity to be part of the internal market and to apply the acquis in areas such as agriculture, environment and regional policy. Continued efforts are required to establish the necessary administrative capacity to ensure the sound and efficient management of EU funds. In the accession negotiations, 26 chapters have been provisionally closed. The commitments made in the negotiations are with a view to accession in 2007. They are generally being met, although delays have been noted in certain specific areas.
Bulgaria continues to fulfil the Copenhagen political criteria.
Progress was made with the adoption of a programme and an action plan for the implementation of the Strategy for Modernisation of the State Administration, which aim at consolidating the legal framework in this area. Sustained efforts will be necessary to further implement the public administration reform and to fulfil Bulgaria's aim to have a qualified and efficient civil service in place in the medium term, to ensure the effective application and enforcement of the acquis when Bulgaria joins the Union.
The overall reform process for the judiciary continued in line with the 2002 Action Plan.
In particular, the amendments to the Constitution regarding the status of magistrates, represent an important step forward. Other legislative measures aim at reducing the duration of court proceedings and strengthening judicial control of decisions of the executive. However, further efforts are necessary to re-organise the investigation service as part of the executive in line with best practice in Member States. Bulgaria also needs to ensure that the judicial budget is adequate for the smooth functioning of the judicial system.
Corruption remains a problem, and Bulgaria should maintain concerted efforts to implement measures in this respect. The fight against corruption remained high on the political agenda and further measures in this context were adopted.
Bulgaria continues to respect human rights and fundamental freedoms.
The legal framework for asylum and child protection improved considerably. However, the living conditions of children placed in institutions changed little during the past year.
As regards the mentally disabled, the required legal framework is still missing, notably to ban arbitrary detention. Despite some efforts to address the situation, the living conditions in institutions for mentally disabled are difficult and opportunities for rehabilitation and therapy are scarce. Further efforts are necessary to address the situation as regards degrading treatment by the police and trafficking in human beings. In the area of social and economic rights, progress can be reported notably as regards equal opportunities and anti-discrimination.
The new Action Plan for the implementation of the "Framework Programme for Equal Integration of Roma into Bulgarian Society" represents a positive step, as specific budgetary support is provided for measures in the areas of anti-discrimination, education, culture, housing, employment and social protection. Determined and sustained efforts are needed to fight discriminatory attitudes and behaviour and to address the widespread social disadvantage affecting the Roma community.
Bulgaria is a functioning market economy. It should be able to cope with competitive pressure and market forces within the Union in the near term, provided that it continues implementing its reform programme to remove remaining difficulties.
The Bulgarian economy has achieved a high degree of macroeconomic stability due to a good policy-mix brought about by the currency board arrangement, a tight fiscal stance and wage moderation. Economic stability and good progress in structural reforms allow market mechanisms to provide a more efficient allocation of resources which, in the absence of the nominal exchange rate as an instrument for adjustment, is setting the basis for a process of sustained growth. This holds in particular for the increasing role of the private sector through privatisation and the reduction of state aid, the positive development of the banking sector and some improvements in the regulatory environment.
However, the flexibility of product and labour markets needs to be further enhanced. In particular, the efficiency of the administrative and judicial system has to be improved, providing economic agents a more stable and predictable framework and better ability to enforce their property rights. The privatisation programme needs to be completed.
Regulations and administrative procedures affecting enterprises must be further streamlined, also to provide more viable conditions for small and medium-sized enterprises. The restructuring and liberalisation of the network industries needs to further advance in order to reduce subsidies, to enhance quality and allow for a reduction of the prices of their services. The ongoing reduction in unemployment should be further supported by addressing rigidities in the labour market and improving the education system. Implementing these reform measures should contribute to higher levels of private and public investment, thereby contributing to sustained growth and competitiveness within the Union.
Political criteria
Recent developments
The political situation has remained stable over the past year.
Accession to the European Union remains high on the political agenda of the government and enjoys broad political and public support. Efforts to make progress in accession preparations have been intensified.
The Protocol on Bulgaria's accession to NATO was signed in March 2003.
In September 2003, an important amendment to the constitution was adopted, introducing a number of changes in the context of the further reform of the judicial system.
1.2 Democracy and the rule of law
Bulgaria has achieved stability of institutions guaranteeing democracy and the rule of law. This was the conclusion of the 1997 Opinion and the subsequent Regular Reports, and has been confirmed by developments over the past year. This section focuses on the most significant developments since the last Regular Report.
Parliament continues to function satisfactorily. The overall law-making process is advancing steadily, with good results as to further alignment with the acquis.
With the formation of a new parliamentary group, there are now five political groupings represented in Parliament.
The Directorate for Legislation and European Law established in April 2002 has ensured that legal expertise on EC law is available at all stages of the parliamentary process. This should help to bring about an improvement in the quality of legislation. Continued attention should be paid to ensuring adequate staffing.
In May 2003, an ad hoc parliamentary commission was mandated to draft certain changes to the Constitution; these are needed to implement further necessary reforms and to align with the practices in EU Member States, in particular as regards the judiciary. This work resulted in the adoption of an important amendment to the Constitution.
In line with the Strategy for Modernisation of the State Administration of June 2002, the reform of the Bulgarian public administration has made progress with the adoption of certain pieces of legislation. Further legislation remains to be adopted. Overall, sustained efforts will be required in order to achieve the ambitious objective of the Strategy, which is to have a qualified and efficient civil service in place in the medium term.
The main structural changes to the organisation of the Government since the last Regular Report are the creation of a Ministry for Youth and Sport in October 2002 and of a Council for the Modernisation of the State Administration in March 2003.
The specific structures for co-ordinating European integration have remained the same as those described in the previous Regular Report. They continue to function well. In addition, a Deputy Prime Minister for European affairs was nominated in July 2003. He is chairman of the Council for European Integration, the Council for Nato and the Council for the Modernisation of the State Administration.
To proceed with the reform of the state administration, a programme and an action plan for the implementation of the Strategy for Modernisation of the State Administration were adopted in January 2003. The programme provides for the establishment of a Council for the Modernisation of the State Administration, which is responsible for the management and control of the action plan. The Council reports directly to the Council of Ministers and is chaired by the Deputy Prime Minister in charge of EU integration. The Council is assisted by an administrative unit within the "State Administration" Directorate of the Council of Ministers, which has, however, only one permanent member of staff.
The action plan sets out changes to several pieces of legislation, such as changes to the laws on the Civil Service and on Administration and the new law on limiting the Administrative Regulation and Administrative Control of Economic Activity.
The latter law was adopted in June 2003 and aims to increase transparency in administrative decision-making as well as positive administrative silence in certain cases.
It also regulates the legal procedures applicable for obtaining different licences and permits, such as business authorisations and building permits.
The amendment to the Civil Service law adopted in early October 2003 provides for new conditions for entering the Civil Service (requirements in terms of professional experience, compulsory competition), better career opportunities based on merit, the introduction of a salary system linked to performance, the right to training (including mechanisms for its funding), the revision of the code of conduct and procedures for the prevention of conflicts of interests.
The envisaged amendments to the law on Administration are not yet adopted. In view of increasing the openness and transparency of public information, the Law on Access to Public Information was amended in May 2003 expanding the range of public institutions that are mandated to provide public information. As a new measure, an administrative appeal against refusal (including silent refusal) of access to public information is introduced in addition to an appeal at court level. The term "public information" was redefined in order to reduce the scope for discretionary judgements by the persons responsible for ensuring access to public information. Requests for access to public information have increased by around 40 per cent compared to the previous reporting period. Most administrative units have a focal point for dealing with such requests.
The legal framework for creating the institution of an Ombudsman was adopted by Parliament in May 2003 and will enter into force in January 2004. The Parliamentary Ombudsman and his Deputy will be in charge of investigating violations of citizens' rights and liberties by state or municipal bodies and their administrations, as well as by persons who provide public services. In this context, they are entitled to access and receive any relevant data for inspection. Financial independence is provided for, as well as immunity. The Ombudsman and his deputy are elected for five years by a simple majority of votes in Parliament. They are exclusively answerable to Parliament and have to present an annual report on their activity. Their opinions and recommendations will be made public. In order to improve administrative services, a "one-stop shop" concept was approved by the government in December 2002. The concept introduces standards for administrative servicing, in particular as regards the procedures for treatment of requests for public services, the improvement of access to services and better co-operation between services.
It is being piloted by five ministries. A report on the performance of the administration is published annually. It is a basis for assessing the efficiency of the state administration and for further necessary changes.
Over the reference period, the overall number of staff with civil-servant status has continued to grow and had reached 26 701 by the end of 2002, corresponding to an increase of around 32 per cent compared to the previous year. The increase concerned mainly the central administration, and a large part of it resulted from the decision of the Ministry of the Interior to grant its employees the status of civil servants. The proportion of civil servants is around 33 per cent of all employees in the public administration.
During 2003, salaries in the public sector have increased by an average of 7 per cent (3.5 per cent as of January 2003 and another 3.5 per cent as of July 2003). Additional allocations have been granted, in particular a new bonus system for staff dealing with European affairs and preaccession funds. However, salaries in the public sector still remain relatively low. In January 2003 a system of job descriptions and performance appraisals for public employees was introduced. The system provides the basis for performance-related pay.
Another priority part of the reform programme is training, and as of 2003 up to 0.8 per cent of the budget for civil servants' salaries has been made available for training purposes. The Institute for Public Administration and European Integration provided training for over 15 000 people in 2002, which represents an increase of 40 per cent compared to 2001. The Institute organises compulsory training for newly appointed civil servants as well as specialised training on European integration issues.
Progress has been made with implementation of the e-Government Strategy. Around two thirds of the state administration has been interconnected. The objective is to provide information about the work of the public administration to citizens and to facilitate compliance with legal duties.
Transparency on the legislative process has improved, thanks to more systematic consultations with civil society and economic and social partners. Since the last Regular Report, there have been several good examples of co-operation with civil society, notably in the social field and in the fight against corruptio. However, more consideration should be given on how the implementation of the acquis can also be fully ensured on regional and local level.
Continued attention should also be given to monitoring and enforcement, in particular by the court system.
Local administration is the responsibility of municipalities. Bulgaria has 263 municipalities, which are legal entities with their own budgets and property. Mayors and municipal councils are elected directly by the local community. Over the reference period, concrete steps were taken to advance the decentralisation of government functions. In September 2002, the Government decided to divide the responsibilities for delivering public services between the central and local government, including the transfers needed to finance those services that fall under local government's responsibility, notably education, health and culture. The 2003 budget marked a significant step forward, as resources to local governments for the execution of their tasks were considerably increased.
A revised Accession Partnership for Bulgaria was adopted in May 2003. The purpose of the Accession Partnership is to assist the Bulgarian authorities in their efforts to meet the accession criteria. It covers in detail the priorities for accession preparations, in particular implementing the acquis, and forms the basis for programming pre-accession assistance from Community funds such as the Phare programme.
This Accession Partnership followed two earlier documents, an action plan and a roadmap. The purpose of the action plan adopted in 2002 was to identify jointly the next steps required for Bulgaria to achieve an adequate level of administrative and judicial capacity by the time of accession; it served also as an instrument to target EU assistance in these areas. As announced in the Commission's 2002 Strategy Paper, the action plan was supplemented by a roadmap, which provides a less detailed but longer term perspective. The roadmap was developed in close consultation with Bulgaria and adopted in November 2002. It indicates the main steps that need to be taken to be ready for membership covering the whole period up to accession, with particular reference to the administrative and judicial capacity necessary to implement the acquis, and to economic reform. For the acquis chapters, the roadmap provides benchmarks against which Bulgaria's progress can be monitored. These issues were further refined in the revised Accession Partnership.
Bulgaria has begun to address the priorities defined by the revised Accession Partnership.
Overall, progress has been made, but substantial efforts are still necessary to complete the tasks foreseen for the period 2003-2004. For a number of these priorities, the government will benefit from Phare assistance, as projects directly related to these priorities have been included in the 2003 Phare programme.
With regard to the political criteria, Bulgaria has continued reforms in key areas such as public administration and the judiciary with the aim of reinforcing democracy and the rule of law. Attention should be focused on the implementation of the relevant strategies and corresponding action plans and the enforcement of legislation. While further progress can be reported in meeting the priorities relating to respect for human rights and protection of minorities, efforts are still necessary.
Bulgaria is steadily moving forward in the implementation of the priorities defined by the revised Accession Partnership with regard to the economic criteria. Good progress was made in structural reforms including the reduction of state aid and the increasing role of the private sector through privatisation, the positive development of the banking sector Council Decision 2003/396/EC of 19 May 2003 on the principles, priorities, intermediate objectives and conditions contained in the Accession Partnership with Bulgaria and some improvements in the regulatory environment. However, there are still a number of areas in which further efforts are needed, including notably streamlining the regulatory procedures for the enterprise sector, restructuring and liberalising the network industries and improving the efficiency and quality of the education system.
Bulgaria continues to make good progress with the adoption and implementation of the acquis. In the internal market area the priorities of the Accession Partnership have been met to a large extent, except for state aid. In all the other areas, implementation is ongoing, but further efforts will be necessary to address all the Accession Partnership priorities.
The revised Accession Partnership continues to be a main tool guiding Bulgaria's preparations for accession to the EU for the period 2003-2004. Implementation of the Accession Partnership needs to continue. It should be given the necessary political attention and should help Bulgaria to set its legislative and institution-building agenda.
