Bulgaria and Romania under strictest EU eye
By George Parker and Daniel Dombey in Brussels and Kerin Hope in Athens

Bulgaria and Romania are set to get the go-ahead to join the European
Union on January 1 under the strictest conditions ever applied to new
members of the club.

Bulgaria will come under the toughest EU scrutiny and faces possible
legal and financial sanctions unless it proves it is serious in
tackling organised crime and high-level corruption.

Olli Rehn, the enlargement commissioner, and Jose Manuel Barroso,
European Commission president, are on Tuesday expected to warn Sergey
Stanishev, Bulgarian prime minister, that his country will be under
unprecedented scrutiny in the coming months.

Mr Rehn and Mr Barroso are understood to have rejected the idea of
postponing Bulgaria or Romania's entry until 2008 – the toughest
sanction available to the EU – on the grounds it would discourage
reformers.

"We think the best way to achieve our aim is to work with them with
the threat of these measures," said a senior European Commission
official. "It's a better way to achieve results than by postponing
until 2008."

Mr Stanishev will be warned in Strasbourg that his country could be
subject to "safeguard measures" – sanctions that can be activated
after a country joins the club – unless EU monitors say that Sofia has
cleaned up its act.

The EU has the power to suspend regional aid payments worth billions
of euros to either Bulgaria and Romania if they are shown to be
subject to persistent fraud.

If Bulgaria fails to tackle crime and corruption, it could be excluded
from EU legal cooperation and its courts' judgements would not be
recognised by the union.

"These are the toughest safeguard measures yet. This is something
new," said the EU official. "These measures can be triggered at any
time.

"In the case of Bulgaria, we hoped they would deliver concrete results
over the summer in tackling high-level corruption and organised crime
but progress has been disappointing."

Mr Rehn will make his formal report on Romania and Bulgaria's progress
on September 26.

Official concern in Brussels about Bulgaria's preparations are likely
to heighten the mood of "enlargement fatigue" in the 25-member club.

Some member states – notably Britain – have been gripped by fears that
the accession of the two poor countries in south-eastern Europe could
lead to mass immigration and increased organised crime.

Senior Bulgarian officials say it takes time to build cases that could
lead to convictions of politicians and judicial officials involved in
major corruption cases or leading underworld figures linked to more
than 100 unsolved assassinations since the mid-1990s.

But the indictment of several regional prosecutors during August
suggests a crackdown may finally be getting under way.

Boris Velchev, Bulgaria's prosecutor general, said in a recent
interview with the Financial Times that close monitoring by the
European Commission after accession would be welcome, but warned
against a safety clause that denied recognition to his country's legal
system.

"A safety clause would be harmful because it would mean the Bulgarian
legal system, which we have been struggling to build, is denied
recognition."





Copyright The Financial Times Limited 2006 "FT" and the "Financial
Times" are trademarks of The Financial Times.



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