The European Commission confirmed that part of the second payment from the Recovery and Resilience Plan is being withheld. According to Bulgarian Deputy Prime Minister Tomislav Donchev, this concerns about two hundred million euros.
Commission evaluations show that Bulgaria has met 58 of the 59 reform milestones of the Recovery Fund. Only the revision of the Anti-Corruption Commission remains incomplete. The European Commission wants guarantees that the body can operate independently and apolitically.
The country joined the EU in 2007, but was only admitted to the Schengen area this year after the Netherlands blocked it for years. Next year, Bulgaria aims to join the eurozone.
Brussels has officially informed Sofia by letter about the suspension and has set a one-month deadline to respond. If the reform remains insufficient afterwards, the payment will remain frozen for another six months.
The Bulgarian government emphasizes that the decision was made solely on technical grounds. Sofia denied that the EU’s assessment of the funds is linked to the recent arrest of Mayor Kotsev of Varna, who is suspected of corruption.
The Bulgarian government remains optimistic. It expects to still receive 440 million euros once the judicial reform is completed. Donchev stated that most conditions have now been fulfilled and that Bulgaria is on schedule for a third payment request.
Justice Minister Georgi Georgiev stated that his country is “categorically ready” to tackle corruption and organized crime. He referred to recent changes in criminal law, including measures against money laundering and digital crime.
Yet, according to Transparency International, Bulgaria remains the most corrupt EU country. With only 43 points on the Corruption Perceptions Index, it has been at the bottom for seven years. Despite some improvements, confidence in the judiciary and transparency in public institutions is lacking.
Brussels’ concerns are heightened by domestic developments. The arrest of Mayor Kotsev and the controversial appointment of Prosecutor General Sarafov, critics say, demonstrate how legal structures in Bulgaria are used to maintain political power.
Both European and Bulgarian officials acknowledge that further steps are needed to strengthen judicial independence. Only when the reform of the Anti-Corruption Commission is convincingly completed can the Commission release the frozen part of the EU payment.