Bulgaria’s 17 years in the EU: Unmet expectations and limited EU fund utilization

Sofia: Bulgaria’s 17-year membership in the European Union has not lived up to the expectations of many Bulgarians, according to Senior Assistant Professor Dr. Tsvetomir Tsvetkov from Sofia University. Presenting a report at the anniversary conference for the Institute for Economic Research, Tsvetkov highlighted that the country’s entry into the EU was anticipated to bring significant improvements in the standard of living, economic growth, and the reduction of inequalities. However, the reality has not matched these hopes.

One of the main expectations was the benefit of EU funding. While Bulgaria initially saw an influx of EU financial support, it has been revealed that only 30-40% of these funds were effectively utilized across various programs. This limited absorption of funds is considered a major shortfall in meeting the country’s development goals.

Tsvetkov also pointed to a decline in Bulgaria’s economic growth post-EU accession. While the country’s economy grew at an average of 5.7% per year from 2000 to 2006, growth slowed to just 2.39% after joining the EU in 2007. He attributed this slowdown to the obligations imposed by the EU accession treaties, which included the closure of certain units at the Kozloduy nuclear power plant and the reduction of agricultural subsidies, both of which led to economic difficulties.

Furthermore, inequality has worsened since Bulgaria’s EU accession, with the income gap between the wealthiest and the poorest growing substantially. The resulting poverty risk has increased as well. Despite hopes for more foreign direct investment (FDI), this area also underperformed. FDI saw a brief rise around the time of accession, but the trend soon reversed, with foreign investment failing to significantly impact GDP growth.

Overall, Tsvetkov’s analysis paints a picture of unmet expectations and ongoing challenges in Bulgaria’s integration into the European Union, particularly in terms of economic advancement, poverty reduction, and the efficient use of EU funds.