Bulgaria risks forfeiting €2.5 billion in grants from the EU’s Social Climate Fund because of delays in preparing its national plan, according to Euractiv.
The warnings came from influential NGOs, including WWF, Za Zemyata (For the Earth), and Habitat Bulgaria. The country’s Social Climate Plan, which aims to support citizens and businesses at risk of energy and transport poverty, is due to be submitted to the European Commission by the end of June.
The NGOs highlighted that the government’s coordination unit for the plan was recently closed, leaving uncertainty about who is responsible for its preparation. The Social Climate Plan is designed to allocate funds from carbon trading to help vulnerable groups, including nearly 30% of Bulgaria’s population (1.8 million people) who are considered energy poor due to low incomes.
Svetoslav Stoykov, an energy expert at Za Zemyata, emphasized the need for a simplified procedure to ensure the funds are accessible to all social groups, particularly the most vulnerable, such as people with disabilities.
Bulgaria also risks losing €4 billion in grants from the European Recovery and Resilience Plan, as Deputy Prime Minister Tomislav Donchev acknowledged earlier in March. The current government, elected in January, has pledged to accelerate reforms to secure the funds, but the political situation remains unstable.
Political instability
Bulgaria’s political landscape is fraught with challenges. Last week, the Constitutional Court ruled that the Velichie (Greatness) party is entitled to 10 seats in parliament, reducing the ruling coalition’s majority to a precarious 121 out of 240 seats. Political analysts warn that this could trigger another snap election, prolonging the country’s political crisis, which has persisted for four years.
A prolonged crisis would likely delay critical reforms, jeopardising Bulgaria’s access to billions of euros in EU funding. The loss of those funds would have significant economic and social consequences, particularly for vulnerable populations reliant on support from programmes like the Social Climate Fund.
As the June deadline approaches, Bulgaria faces mounting pressure to finalise its Social Climate Plan and implement necessary reforms. The government’s ability to navigate the political turmoil and prioritise efforts will determine whether the country can secure vital EU funding or face further economic setbacks.
