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EU-Report Accession Bulgaria
Bulgaria has achieved a high degree of macro-economic stability. Enterprise restructuring and
promotion of private sector development has continued. In line with the Action Plan, work on
analysis of the restructuring in the banking sector continued and considerable further progress
has been made on restructuring and privatising this sector. The development of the non-banking
financial sector remains at an early stage and continued measures will be needed to improve the
functioning of the capital market. As concerns the strengthening of the banking sector, the
largely foreign-owned banking sector is developing in terms of credit growth and savings
deposits. New privatisation procedures have been set up aimed at accelerating the privatisation
process and making this more transparent and efficient. Bulgaria has started to make progress to
prepare for the restructuring of the energy sector. Efforts are needed to further develop and
start to implement an energy efficiency strategy and to attract increased investment. Concerning
restructuring of the steel sector, Bulgaria has undertaken to ensure that no further state aid
will be given which is incompatible with EC state aid rules for the steel sector. Amendments to
the bank bankruptcy law were adopted with the aim of further improving and accelerating
bankruptcy and liquidation procedures. However, market exit procedures still need to be improved
to reduce the time needed to complete procedures and improve enforcement of decisions. Work to
establish a functioning land market and finalise the land and property register is ongoing but is
not yet complete and needs to be pursued. Further measures are being taken to improve the
business environment and stimulate domestic and inward investments, but these need to be pursued.
Further work is needed to ensure business-friendly legal, tax, regulatory and administrative
frameworks (including improved contract enforcement and licensing procedures) that provide a
level playing field for all businesses (small and large, foreign and domestic). Work to remove or
reduce the burden of permit and registration regimes is ongoing which contributes towards
developing a more favourable business environment for SMEs, through addressing the remaining
obstacles to SME development.
Overall, the Accession Partnership priorities related to the economic criteria have been only
partially met although steady progress has been made. The implementation of measures in the
Action Plan is largely on track.
© EU Commission -- 2003-03-30
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