Summary of the July 23 press-conference at the EC, where the progress reports on Bulgaria and Romania were presented

This text represents the speaking points used by the EC spokespersons for the briefing. They are published at the EC website.

The Commission has today approved a series of reports assessing the progress in Bulgaria and Romania of judicial reform and the fight against corruption under the Co-operation and Verification mechanisms set up when both countries joined the EU last year. The Commission has also adopted a separate report on the management of EU funds in Bulgaria.

Bulgaria and Romania have come a long way over the last decade. The first eighteen months of membership of the European Union have been beneficial for the two countries and the whole European Union. Our task is now to consolidate that progress. The Commission wishes to see the citizens of both countries reap the full benefits of membership and also enhance their confidence in the rule of law.

When the two countries joined the European Union in 2007 they both made commitments to address shortcomings in their judicial systems and to step up the fight against corruption. Organised crime was also highlighted as a specific concern in Bulgaria.

The Commission's first reports were issued last June. Eighteen months on, the Commission is making a more detailed assessment of the situation in the two countries.

 

The reports are objective, balanced and based on a comprehensive review of the facts. They set out the progress made but are frank in presenting where further work is needed. The situation is quite different in each country so the reports reflect the differences on the ground. We are not comparing these Member States with each other.

In summary, the reports say the following: Overall, the situation in Romania is a mixed picture. The fundamental elements of a functioning system are in place. But the foundation is still fragile and decisions on high level corruption are still too politicised. Commitment to reform by Romania’s key institutions and bodies is still uneven. While progress on judicial reform has been made, there is a need for the system to show there are penalties for high level corruption. The Commission strongly encourages Romania to intensify its reforms.

Turning to Bulgaria, the Commission's reports states that reform of the judiciary and law enforcement structures is necessary and long overdue. Bulgaria has taken steps in the right direction over the last six months with the setting up of the State Agency for National Security and the decision to reform the Ministry of Interior. The test of progress will now be whether these measures can deliver concrete results by investigating, prosecuting and judging cases of high-level corruption and organised crime.

The Commission has also adopted today a separate report on the management of EU funds in Bulgaria.

The European Union is already helping to make concrete improvements to the lives of Bulgarian citizens through substantial financial assistance. At the same time, in the last six months the Commission provisionally suspended EU funding because of irregularities found through our control and auditing system. While significant work has started to address these problems, the Commission is not yet sufficiently reassured to ease the suspensions. Today the Commission has therefore formally taken the decision to withdraw the accreditation for two government agencies in charge of managing PHARE pre-accession funds.

 

Once Bulgaria has taken the necessary steps to improve financial management and control, the commission is prepared to reverse its decision.

The Commission has also taken a formal decision to suspend infrastructure funding under ISPA cohesion funds.

Turning to the reports in more detail.

Let me start with Romania

The Government has managed to step up its efforts and restore a reform drive and relative stability in the legal and institutional framework for the fight against corruption. The National Integrity Agency and National Integrity Council have become operational and they now need to establish a balanced relationship and track record without delay.

We have also seen the National Anti-Corruption Department establish a good track record in the prosecution of cases and launching investigations on a number of high level cases. This track record in the pre-trial phase now needs to be matched by a similar track record in the trial phase. We need to see an unequivocal consensus, including from all parts of the Parliament to rooting out high level corruption. We also see frequent delays caused by judges sending cases back to the prosecution for minor reasons which they themselves could resolve. We are also concerned by adjournments of proceedings, a lack of convictions and non-deterrent sentences in cases of high-level corruption.

In moving forward, the laws, procedures and institutions which are in place have to be allowed to build a track record – to show that they are capable of producing results in a longer-term perspective. Romania still needs to do much more. More specifically:

The Superior Council of the Magistracy must take an unequivocal position on the fight against high level corruption in the context of the current controversial political debate in Parliament.

To stabilise the legal framework, the Government should finalise a new Criminal Procedure Code and make progress on the draft Criminal Code. The controversial amendments to the emergency ordinance amending the existing Criminal Code and Code of Criminal Procedure should be dropped.

The fight against corruption needs to be depoliticised and Romania must affirm its unequivocal commitment to fight against high level corruption. Institutional stability of the DNA must be maintained. Independent investigation of former ministers and members of Parliament by the judicial authorities must be allowed to proceed to restore public confidence.

Commitment to and ownership of reform needs to take root across the entire political spectrum and within the judiciary.

Turning to the situation in Bulgaria

The report analyses the serious challenges the Bulgarian authorities face in registering real progress in judicial reform and the fight against corruption and organised crime. They have established the necessary institutions and required procedures, but there are few results to demonstrate that the system functions.

Since the Commission's last report, Bulgaria has set up a State Agency for National Security to fight corruption and organised crime which is working on its first cases. Bulgaria closed duty-free shops and duty free petrol stations which were allegedly focal points for local corruption and organised crime and introduced new administrative procedures which reduce corruption opportunities. Commitments have been made on reform of the Ministry of the Interior. However, despite the effort that has gone into setting up institutions and processes, there is still a lack of results:

Bulgaria's serious problems in the fight against corruption and organised crime result from deficiencies in the judicial system.

The Bulgarian Penal Code is outdated and contributes to overloading the judiciary. There are problems at the pre-trial stage. The roles and responsibilities of police, special services, investigators and prosecution are not sufficiently well defined, important cases are delayed on the basis of small procedural shortcomings.

This means that the fight against high level corruption and organised crime is not producing results. While there has been movement on a few cases, many alleged cases go unpunished.

Bulgaria has made little progress in freezing or confiscating financial assets resulting from criminal activities.

Urgent progress is needed, including:

Amending the Penal Procedure Code and drafting a new penal Code to facilitate a more effective administration of justice. It is also important that a more effective law on conflict of interest and asset control be established.

Law enforcement needs to be better organised to handle complex cases. The roles and responsibilities of each party in the pre-trial phase must be clarified so as to achieve improved cooperation between the police, investigators, specialised departments and the prosecution. The investigative role of SANS needs to be clarified and clearly separated from its intelligence role, proper control mechanisms need to be put in place. The lack of respect for confidentiality and for the protection of witnesses needs to be rectified.

The administrative capacity of both law enforcement and the judiciary needs to be strengthened. The police need better trained staff and the necessary equipment to investigate complex cases. The computerisation of the judiciary needs to be completed.
The Commission has also adopted today a separate report and two decisions on the management of EU funds in Bulgaria. The European Union is already helping to make concrete improvements to the lives of Bulgarian citizens.

At the same time, in the last six months we have provisionally suspended some EU funding because of irregularities found through our control and auditing system. Bulgaria is experiencing difficulties in many of the pre-accession programmes and has to demonstrate that sound financial management structures are in place and operating effectively. This is taxpayer's money.

The Commission recognises the efforts taken over recent months by the Bulgarian authorities.

Nevertheless, it is the Commission's duty to safeguard the financial interests of the Union. Therefore, the Commission has taken the decision today to formalise this suspension and withdraw the accreditation for two government agencies in charge of managing these pre-accession funds. At the same time, the Commission has made clear that it is prepared to reverse its decision as soon as Bulgaria has taken the necessary corrective measures. The Commission wants to see these difficulties resolved as quickly as possible in the interest of the citizens and has therefore presented a series of recommendations to guide Bulgaria in this process.

To conclude, the Commission will do all it can to help Bulgaria and Romania. Ultimately, the results on the ground must come from the two countries themselves. The three reports show that a coherent strategy and sustained reforms need to be taken further. Changes in laws and procedures are needed but most of all there is a need for concrete results in terms of trials, convictions and deterrent sentences. The Commission has today set out a series of recommendations to both Member States which we expect will be implemented by the next interim report early next year. Bulgaria and Romania can count on the full and active support of the Commission in this process.