Monitoring report on the state of preparedness for EU membership of Bulgaria and Romania

Contents
	Introduction
	Summary of monitoring fidings
	Bulgaria
	Romania
	Safeguards and other measures
	Tools applicable to all Member States
	Tools based on the Accession Treaty
	Accopmanying measures foreseen for the accession of Bulgaria and Romania
	Judiciary and the fight against corruption
	Agricultural funds
	Food safety
	Aviation safety
	Conclusion
	Country Annex Bulgaria
	country Annex Romania

In Bulgaria and Romania there is a real risk that the IACS will not be functioning properly by the time of accession. In both countries, the timetable for completing such a properly functioning IACS is very tight due to the late start of preparations. As a result, the necessary quality of the work to be carried out risks not to be achieved.

The agricultural funds covered by the IACS constitute by far the largest part (around 80%) of the agricultural expenditure of Bulgaria and Romania and, therefore, a proper functioning IACS is of the utmost importance.

To address these risks, a mechanism is needed which provides for the possibility of a future decision on measures relating to the proper use of agricultural funding covered by IACS. Such measures are necessary to avoid undue payments during the first years after accession and to address the imminent risk of a serious breach of the functioning of the internal market in agricultural products. This risk is due to the specific nature of agricultural expenditure, which is under a strict timeframe. In addition, the funds covered by the IACS are characterised by a high volume of transactions early after accession. They have to be managed, controlled and paid soon after accession. Moreover, efficient controls can only be carried out during a limited period in the year concerned.

The mechanism, based on the Accession Treaty, is laid down in a regulation adopted simultaneously with this communication. In practice the mechanism gives the two countries time to complete the necessary work on a properly functioning IACS. The measures will not be introduced if they succeed in doing so within that timeframe. To achieve the timely completion of the work, continued increased efforts are needed.