## Bulgaria’s EU Funds Absorption: Maximizing the Potential!

_IMF Working Papers, February 6, 2014_

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## Bibliographic details
- Authors: Iana Paliova, Tonny Lybek
- Published: February 6, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475571684.001

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### Summary
- Focus: EU structural and cohesion funds assistance to Bulgaria during the 2007–13 program period.
- Initial weaknesses resulted in a low absorption rate.
- Mitigating measures implemented:
  - increasing advance payments;
  - applying electronic application and reporting procedures;
  - simplifying and unifying tender processes;
  - strengthening the role of international financial institutions and banks in project preparation, evaluation and monitoring.
- The paper briefly discusses the possible impact on growth and potential output.
- The risks of improper absorption are acknowledged.
- Recommendation: additional steps be taken for the next program period 2014–20.

### Key findings and analysis
- Initial low absorption of EU structural and cohesion funds during 2007–13 due to administrative and procedural weaknesses.
- Effective corrective actions combined financial (advance payments) and procedural (electronic procedures, tender simplification, unification) reforms.
- Involvement of international financial institutions and banks contributed to improved project preparation, evaluation, and monitoring.
- The paper considers how improved absorption could affect growth and potential output, while noting attendant risks if absorption is improper.

### Policy recommendations and implications
- Preserve and scale up measures that improved absorption:
  - continue use of electronic application and reporting procedures;
  - maintain simplified and unified tender processes;
  - sustain engagement with international financial institutions and banks for project lifecycle support.
- For the 2014–20 program period, take additional steps to build on lessons learned to further raise absorption and safeguard against improper absorption.
- Balance the pursuit of higher absorption with controls to mitigate risks of improper use of funds.

*IMF Working Paper by Iana Paliova and Tonny Lybek, February 6, 2014.*

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## Content in this bundle

- **Appendix I. Post-Accession Funds in Various EU Countries: Experiences and Lessons**
  - [Appendix I. Post-Accession Funds in Various EU Countries: Experiences and Lessons (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2014/_wp1421.pdf.md){rel="alternate" type="text/markdown"}
  - [Appendix I. Post-Accession Funds in Various EU Countries: Experiences and Lessons (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2014/_wp1421.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/bulgarias-eu-funds-absorption-maximizing-the-potential-41311_