Don Lydon (Fianna Fail)

When the Minister of State began his contribution he referred to the late Mr. Haughey, God rest his soul, who was a staunch advocate of Ireland's participation in the European project. He was a prince among men when it came to the European project. Mr. Haughey was sometimes referred to as Machiavellian. If Mr. Haughey was a prince, he was not a Machiavellian prince, but was almost certainly a Medici.

Many people have referred to the accession of Bulgaria and Romania, stressing the negative aspects. I would like to refer to some of the positive aspects. The Minister of State has indicated that the number of red flag issues has reduced from 16 to six. The accession incentive has resulted in a raft of reforms in Bulgaria.

The Bulgarian economy has been completely transformed with market-based principles and is characterised by stability, prudent fiscal policy and growth. The main economic indicators include an average annual GDP growth of between 5% and 6%, low inflation and a fiscal target of 3% GDP surplus in 2006. In line with the strong economic growth, employment grew by 2% in 2005. Trade expanded with an acceleration of volume growth to 18.4% for exports and 26% for imports, due mainly to strong imports of investment goods. The trade deficit is balanced by a surplus in the service balance, mainly in tourism.

With regard to restructuring and liberalisation, 90% of all assets earmarked for privatisation have been privatised. The financial services sector has been completely privatised and further progress has been made in the liberalisation and restructuring of network industries. The railway liberalisation is well advanced and concessions for the operation and upgrading of ports and airports are being granted to private operators. The opening up of gas and electricity markets continues in line with the envisaged timetables. In the telecommunications sector, a third mobile operator started services in November 2005, improving the conditions for effective competition.

In its monitoring report of 16 May 2006, the Commission concluded that Bulgaria is a functioning market economy which has maintained macroeconomic stability and advanced structural reforms. It indicated that the continuation of current reforms should enable it to cope with the competitive pressures and market forces within the European Union and accomplish the target of accession to the European Union on 1 January 2007 by resolving outstanding deficits.

Bulgaria accepted the recommendations and the Bulgarian Government discussed in a constructive manner how to address remaining challenges and consolidate ongoing reforms, particularly in the so-called red flag areas identified in the Commission's report. On 8 June the Bulgarian Government adopted an action plan comprising concrete measures and associated timetables. It intensified efforts to achieve tangible results to fully prepare Bulgaria for accession. The measures include consolidation of the framework for combating corruption and organised crime, further fine-tuning of the system to prevent money laundering and strengthening of financial controls for future use of the Structural and Cohesion Funds.

In the area of transparency, the recent process of full publication of the declaration of interests and assets by members of parliament, Ministers, high-level public servants and magistrates and political parties has begun. It is shortly expected that the current system for public access to the data will be significantly enhanced.

A unit for the fight against corruption and organised crime, directly subordinated to the prosecutor general, was set up with specialised prosecutors to deal with specific cases. The structure of the Ministry of the Interior was significantly improved, avoiding any overlap between various divisions and services.

The intensive work of the prosecutor's office and the Ministry of the Interior has produced concrete results evidenced in the charges the prosecutor's office recently raised against symbolic figures in the criminal fraternity. There is also sustained progress in prosecuting cases of corruption at all levels. The independent criminal assets commission was strengthened and recently brought several cases to the respective courts, thus targeting the economic background of the persons involved in criminal activities.

The co-ordination mechanism for the fight against money laundering has been enhanced. A specialised anti-money laundering unit was set up at the prosecutor's office. Further strengthening of the competent structures is envisaged, aimed at better co-ordination in tackling these challenges.

With regard to the judiciary, following the third major constitutional amendment early in 2006 and the overall enhancement of the legal framework, work is now concentrated on strategic assessment of results and identification of any needs for further fine-tuning of the system. The enhancements included amendments to the penal procedure code and the civil procedure code, as well as the adoption of the new administrative procedure code.

With regard to the functioning of the courts, efforts are aimed at completing the introduction of the system of random distribution of cases in all Bulgarian courts. With regard to financial control, Bulgaria pays particular attention to strengthening the existing structures and enhancing the co-ordination mechanisms. Specialised training for officials at all levels of the competent bodies is under way.

The co-ordination council for protection of the European Community's financial interests was also strengthened. It comprises representatives of the relevant authorities and co-ordinates the work in this area. Integrated administration and control systems in the area of agriculture is another area of concern. The Ministry of Agriculture and Forestry has concentrated its efforts on completion this year of the aerial photography required and on the opening of new rendering plant construction and completion of the border inspection posts.