EC approves 11 billion euros for Bulgaria until 2027

The European Commission on July 6 adopted a partnership agreement with Bulgaria worth €11 billion. The agreement sets out the country's investment strategy in cohesion policy for the period 2021 to 2027.

These are the EU funds, which are different from those that Bulgaria will receive under the Recovery and Resilience Plan. The partnership agreement with Bulgaria covers 10 national programmes. Their funding will come from the European Regional Development Fund - ERDF, the European Social Fund Plus - ESF+, the Cohesion Fund, the Just Transition Fund - JTF and the European Maritime, Fisheries and Aquaculture Fund - EMFAF.

Environmental transition and reducing energy dependence

€2.4 billion from the ERDF and the Cohesion Fund will help Bulgaria achieve its climate targets. €600 million will help increase the share of renewables to 27% of total energy consumption, and reduce energy consumption and greenhouse gas emissions in public buildings.

ERDF funding will also be used to recycle 70% of all packaging waste. Investments will also aim to reduce by more than a third (at least 35%) the proportion of the population living at risk from natural disasters such as floods or forest fires. The Just Transition Fund will provide €1.3 billion to ensure a socially and economically sustainable transition. The Fund will improve the capacity of the affected areas to make better use of renewable energy.

Catching up with the EU and supporting the most vulnerable regions

The funds will help Bulgaria to improve its basic infrastructure, especially in regions where investment in infrastructure is insufficient or lacking. Almost half of the total cohesion policy funding (€4.2 billion) will be invested in the North West, North Central and North East regions, including in the form of co-financing for the construction of the Shipka tunnel - the first tunnel to go through the Balkan Mountains.

The European Union's support for a favourable business environment is also expected to increase the share of innovative SMEs from 27.2% in 2016 to 32% in 2026 - they will create jobs and contribute to the development of the Bulgarian economy. Jobs of the future: a more socially inclusive and digitally responsive labour market.

Bulgaria will invest €2.6 billion from ESF+ to improve access to employment, boost skills to enable people to successfully navigate the dual environmental and digital transition, and ensure equal access to quality and inclusive education and training.

This includes €315 million to support youth employment and €630 million for social inclusion measures, of which €136 million is earmarked for combating child poverty. €221 million will be targeted at the socio-economic integration of marginalised communities, such as Roma.

Thanks to EU funding, early school leaving is expected to fall from 12.8% to 7% by 2030. Adult participation in learning activities is expected to increase from 24.6% to 35.4%, while employment 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 to 1.5 million).

Bulgaria aims to exceed the employment rate target set at the Porto Summit and the number of people at risk of poverty and social exclusion in the country should fall by almost 800 000.

Sustainable fisheries and sustainable aquaculture

EMFAF will invest some €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, including local fishing and aquaculture communities, and for the implementation of international ocean governance.

All actions supported will contribute to the objectives of the Common Fisheries Policy as well as the key EU policy priorities outlined in the European Green Pact, the Farm to Table Strategy and the Biodiversity Strategy.

The Partnership Agreement with Bulgaria is the twelfth agreement for the 2021-2027 funding period, following those already adopted for Greece, Germany, Austria, the Czech Republic, Lithuania, Finland, Denmark, France, Sweden, the Netherlands and Poland.