site.btaCommission Okays EUR 11 Bln in Cohesion Policy Funding for Bulgaria under Partnership Agreement

The European Commission Wednesday announced the adoption of its Partnership Agreement with Bulgaria, laying down the country's Cohesion Policy investment strategy worth EUR 11 billion for the period 2021-2027. Cohesion Policy funds will promote economic, social and territorial cohesion in the Bulgarian regions and help implement key EU priorities such as the green and digital transition. These funds will also support policy areas where Bulgaria has potential to improve and reduce regional disparities within the country.

Almost half of the total Cohesion Policy funding will be invested in the Northwest, North Central and Northeast regions.

The Partnership Agreement covers the European Regional and Development Fund – ERDF, the European Social Fund Plus - ESF+, the Cohesion Fund – CF, the Just Transition Fund – JTF, and the European Maritime Fisheries and Aquaculture Fund - EMFAF. 

Bulgaria hails EC's decision

Sofia hailed the EC decision. "These resources are of crucial importance for this country to achieve average European living standards," said Bulgaria's outgoing Finance Minister Assen Vassilev. He pointed out that it is the first time such a significant part of the funding will go for Northern Bulgaria. By comparison, funding for this part of the country was a mere 27% of funding in the previous programming period (2014-2020), he added.

Here is how the funding will be distributed among the covered areas.

Green transition and reducing energy dependence 

EUR 2.4 billion from the ERDF and Cohesion Fund will help Bulgaria achieve its climate targets.

In particular, EUR 600 million will help increase the share of renewable energy to 27% of total energy consumption as well as reduce energy consumption and greenhouse gas emissions in public buildings. ERDF funding will also be used to recycle 70% of all packaging waste, the Commission says.

The investments will also focus on the reduction by more than a third (at least 35%) in the share of the population living at risk of natural disasters, such as floods or wildfires.

The JTF will provide EUR 1.3 billion to ensure a socially and economically sustainable transition. The Fund will improve the capacity of the impacted territories to make better use of renewable energy.

Catching up with the EU and supporting the most vulnerable regions 

The funds will also help Bulgaria improve its basic infrastructure, especially in the regions where infrastructure investments are insufficient or lacking, the Commission says. EUR 4.2 billion will be invested in the Northwest, North Central and Northeast regions, including in co-financing the construction of the Shipka Tunnel, the first tunnel through the Balkan Mountains.

EU support for the business environment is expected to increase the share of innovative small and medium-sized businesses that will create jobs and contribute to the development of the Bulgarian economy from 27.2% in 2016 to 32% in 2026.

A more socially inclusive and digital-friendly labour market 

Bulgaria will invest EUR 2.6 billion from the ESF+ to improve access to employment, increase skills so that people can successfully navigate the digital and green transition, and ensure equal access to quality and inclusive education and training. This includes EUR 315 million for youth employment support and EUR 630 million for social inclusion measures of which EUR 136 million will tackle child poverty. EUR 221 million will address the socio–economic integration of marginalised communities, such as the Roma.   

Thanks to EU funding, the early school dropout rate is expected to decrease by 2030 from 12.8% to 7%. The adult participation in learning is expected to increase from 24.6% to 35.4%, while the employment rate is expected to increase from 73% to 79%. The population at risk of poverty and social exclusion is expected to decrease by 0.8 million from 2.3 million to 1.5 million.

Finally, Bulgaria aims to exceed the Porto target when it comes to employment rate, and the number of people at risk of poverty and social exclusion in the country should decrease by almost 800,000.

Sustainable fisheries and aquaculture

The EMFAF will invest around EUR 84.9 million in more sustainable fisheries and the restoration and conservation of aquatic biological resources in the Black Sea. Support will also be provided for the development of a sustainable aquaculture and processing sector, the local fisheries and aquaculture communities and to the implementation of international ocean governance. All supported actions will contribute to the objectives of the Common Fishery Policy as well as the key EU policy priorities outlined in the European Green Deal, the Farm to Fork and the Biodiversity strategies.

Under the Cohesion Policy, and in cooperation with the Commission, each Member State prepares a Partnership Agreement, a strategic document for programming investments from the Cohesion Policy funds (European Regional and Development Fund, the European Social Fund Plus, the Cohesion Fund and the Just Transition Fund) and the European Maritime Fisheries and Aquaculture Fund during the Multiannual Financial Framework. 

The Partnership Agreement with Bulgaria covers 10 national programmes. It is the twelfth agreement for the 2021-2027 funding period, following the ones already adopted for Greece, Germany, Austria, Czechia, Lithuania, Finland, Denmark, France, Sweden, the Netherlands and Poland.

Commissioner for Cohesion and Reforms, Elisa Ferreira, is quoted by the Commission as saying that the Partnership Agreement marks a decisive step for Bulgaria. "Cohesion funding in 2021-2027 will be essential to reduce regional disparities in the country and promote growth convergence with the rest of the EU. We now look forward to the completion of negotiations on the ten operational programmes so that Cohesion Policy can start investments in key areas such as clean environment, better education, support for businesses and transport infrastructure as soon as possible.”