Bulgaria is significantly late with the implementation of the Recovery and Resilience Plan.
This is stated in a report of the European Commission for 2024, which presents an analysis of socio-economic development in the countries of the bloc.
Under the plan, which is worth €5.689 billion in grants, only one payment of €1.37 billion has been made so far, representing 24% of the total. Bulgaria still has 4.3 billion euros that are in the process of being disbursed and depend on the fulfillment of 299 of the total of 321 remaining milestones and targets. The deadline for the implementation of the plan is August 2026.
As of May 15, the European Commission is cooperating with the Bulgarian authorities to fulfill the requirements for the second payment. Brussels expects improvements in administrative capacity, the quality of public procurement, as well as the independence and functioning of regulatory bodies. Improving the business environment is critical, as 53% of investors lack confidence in the legal and judicial protection of their investments.
The report highlights the challenges facing Bulgaria in the area of decarbonization of the economy and energy production. The belated liberalization of the electricity market - a key reform under the Recovery Plan - is hindering the transition to clean energy. Heating systems are often in poor condition and rely mainly on natural gas or coal. Although 2023 sees a remarkable increase in the deployment of photovoltaic systems, the use of wind energy has stagnated for the past decade, and the country does not have sufficient energy storage capacity.
"Energy poverty continues to be a significant problem in Bulgaria, and in 2022, 22.5% of the population will not be able to adequately heat their homes, which is the highest percentage in the EU compared to the average of 9.3%. Greenhouse gas emissions from road transport are also a major concern, increasing by 29% in 2022 compared to 2005 levels. Despite the high use of passenger cars, the share of battery electric vehicles is low, and infrastructure for charging electric vehicles is insufficient, hindering the adoption of electric mobility," the report states.
The document also notes the deterioration of the state of Bulgarian education over the last year, with the country showing weaker results in international assessments. A significant proportion of 15-year-old students do not have minimum knowledge of mathematics (53.5%), reading (52.9%) and natural sciences (48%). Digital skills in Bulgaria are much lower than the EU average (35.5% vs. 55.5%) and the participation of adults in continuing education or retraining courses remains low, despite being the focus of transition plans for coal regions. | BGNES
