FACTBOX - EU's limited power to pressure newcomers

Sun May 11, 2008 1:25am BST
 
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(Reuters) - The European Union's executive body and many of the bloc's 27 member states are growing increasingly dissatisfied with a failure by newcomers Bulgaria and Romania to tackle corruption and implement other reforms.

The smaller Bulgaria has been in the spotlight for its apparent inability to combat organized crime.

The EU had had strong leverage over Bulgaria and Romania before they joined the bloc in 2007, when it could threaten to delay their membership: this helped enforce many political and economic reforms in the Black Sea countries.

Now they are full members with equal voting rights in the bloc, and the EU has only limited powers to enforce reforms.

Following are measures the EU can take if Bulgaria and Romania renege on their commitments and cause other problems. Some are envisaged by the accession treaty, others can be applied to any EU member state at any time.

FINANCIAL AID

The European Commission may delay, reduce or recover payments of regional aid if their management is deemed corrupt.

This is its main stick: Romania is due to receive some 32 billion euros ($49.06 billion) and Bulgaria 11 billion euros in funds by the end of 2013.

If the Commission finds the countries are mis-spending farm aid funds, it may suspend payments on a case-by-case basis.  Continued...

 
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