The Parliamentary Committee on European Affairs and Control of European Funds accepted from the first reading and without debates the law project for management of the European structural and investment funds.

The objective of the law is to create a more transparent and clear system for public finance management and will affect the absorption of about 10 billion euro that Bulgaria should receive during the new programming period 2014 – 2020. Its range includes the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund. For the resources provided by them are governed standardized procedures with written deadlines and requirements.

The law establishes the proper regime in the relations between the managing authorities and beneficiaries. During its presentation to the Committee it was mentioned that is the first law that guarantees to the beneficiary many rights and protections as are provided penalties for government officials in the form of fines in cases where deadlines are not met by them.

Financial aid is now provided with an administrative contract. This will help appeal financial corrections that are imposed on various projects and have so far been very difficult to fight in court. Financial corrections will be determined on basis and size with an individual administrative act and may be imposed for the entire project or separate activities or contract. Being introduced are accelerated appeal procedures (under the Administrative Procedure Code (APC), which will not hinder the process of absorption of resources.

The exchange of information and documents will be electronically through the information system for management and monitoring of funds from European Standardised Information Sheet (ESIS) (Information System for Management and Monitoring- ISMM), which is maintained by the Central Coordination Unit. The details of the processes for payments, recovery and delisting of irregular expenses and accounting of the programs, as well as the relationship between managing and certifying authorities will be carried out by an act issued by the Minister of Finance.

With the law project settles the creation of so-called fund of funds as a separate financial resource that will manage the financial instruments under the programs. Basically they are a separate operational program and are worth 700 million euro without the resources from the rural program.

This fund was actually already created as a single state company by the Council of Ministers in July, as it was expected that the Finance Minister would exercise the rights of the state in the company. In the law project itself, published on the website of the National Assembly, is stated that for the management of EU funds will be responsible the Council of Ministers, Deputy Prime Minister or Minister of European Funds as well as the Finance Minister. Carrying out the national policy for implementing financial instruments is defined precisely as a function of the Finance Minister which means that Ministry Finance will control the fund.

Source: capital.bg