SUMMARY OF THE EC MONITORING DRAFT REPORT ON BULGARIA AND ROMANIA

The draft does not contain a keenly awaited recommendation on whether the two Balkan countries should join the EU in 2007 or 2008.

Following are areas about which the Commission says it still has serious concerns, the so-called red flags, and other areas in which the countries must make improvements.

BULGARIA

Red flags:

  * lack of a system for animal registration needed to pay EU farm subsidies and maintain proper veterinary standards;
                               
  * lack of facilities to collect and treat animal by-products needed to prevent mad cow disease;
                               
  * no tangible results in investigating and prosecuting organised crime networks;
                               
  * no fully efficient and systematic implementation of laws to combat fraud and corruption;
                               
  * insufficient enforcement of anti-money laundering rules;
                               
  * insufficient financial control over EU regional aid.
                                
                             
Other areas of concern include: trafficking in human beings for prostitution, cases of ill-treatment of detainees, living conditions in child welfare and mental health care institutions and social inclusion of the Roma minority.
                               
Increased effort is needed on: recognition of professional qualifications, quality of financial services, protection of personal data, energy market liberalisation, nuclear plant decommissioning, steel restructuring and fight against drugs.

  ROMANIA

Red flags:
                               
  * not fully operational payment agencies for EU farm aid;
                               
  * lack of system for animal registration needed for paying EU farm subsidies and maintain proper veterinary standards;
                               
  * lack of facilities to collect and treat animal by-products needed to prevent mad cow disease;
                               
  * computer system for tax collection is not interoperable with those of the rest of the EU, preventing correct collection of Value Added Tax throughout the EU internal market.

Other areas of concern include: intellectual property protection, veterinary border inspection, not fully efficient justice system, corruption, trafficking in human beings for prostitution, overcrowded prisons, living conditions in psychiatric institutions, inclusion of the Roma minority.
                               
Increased effort is needed on: EU citizens' rights, freedom to provide non-financial services, capital requirements for banks and investment funds, fight against money laundering, state aid to industry, EU regional aid monitoring, fight against organised crime and water quality.