News

As of June 30^th 2017, the total sum of the money paid on the territory of Bulgarian municipalities under the operational programs of the EU has reached 8 769 197 329 leva, or 1230 leva per capita.

The district-level data show that the most funds have been absorbed by the largest districts – the capital (3 249 million leva), Plovdiv (663 million leva), Burgas (563 million leva), Varna (399 million leva), Stara Zagora (332 million leva). The lowest amount of EU funds has been absorbed by Pernik (55 million leva), Targovishte (75 million leva), Smolyan (84 million leva), Kyustendil (85 million leva), Vidin (94 million leva).

Compared to the population, the sum of EU money is again the larges in the capital – 2455 leva per capita, followed by Gabrovo – 2365 leva per capita and Burgas – 1364 leva per capita.

The data show that among the 265 municipalities in the country the largest amount of EU funds relative to the population has been absorbed in Rila municipality – over 6000 leva per capita. On the other end Kovatchevtsi - less than 30 leve per capita. There are ten municipalities with less than 100 leva per capita, and 13 with over 3000 leva per capita.

IMPORTANT NOTE: The data has been updated on July 11^th 2017, due to a technical error in the publishing of the original table. The IME team offers its apologies.

Amounts of money paid to beneficiaries of operational programs as of June 30^th 2017, BGN per capita

Such stark difference quite often has an impact on the long term development on the separate municipalities. The IME has already established that there is no statistically significant relationship between the improvement of the economic condition of municipalities and the EU funding absorbed by them. In other words, event hough most districts have been steadily moving towards the mean levels of real income in the EU, it cannot be claimed that the European funds are driving this process. In the same time the differences between the economic conditions of the separate districts are deepening. This is because the rates of improvement of their economies are very different – while some are barely growing, others (Sofia, Varna and Stara Zagora) are steaming ahead. It could be speculated that European funds are actually helping the deepening of economic differences, as the most developed regions also succeed in taking in the most funds.

The largest projects financed with EU money as of now are the subway system in Sofia, parts of highways and roads and water treatment plants in different parts of the country. In the same time thousands of projects of municipal administration are focused on the making of parks, improvement of municipal property and minor repairs of buildings and infrastructure. It is usually problematic that given the limited administrative capacity and the pursuit of short-term goals (till the next local elections) municipalities are often forced to choose whether they should apply for European projects or seek real investments. Finding investors is a long-term and hard process with unclear chances of success, but it brings real development to the local economy. It often involves municipal expenditures (infrastructure building, for instance) which do not bring much income in the municipal budget given the lack of fiscal decentralization. In the same time European projects lead directly to quick and visible to the citizens (therefore, the voters) results – a nice park, for instance – and provides opportunities for additional rewards for municipal workers.