European Structural Funds in Bulgaria
Structural Funds are financial instruments managed by the European Commission to strengthen economic, social and territorial cohesion by reducing disparities between more-developed and less-developed regions.
Article 174 of the Treaty on the Functioning of the European Union provides that, to strengthen economic, social and territorial cohesion within the Union, it must reduce disparities between the levels of development of the various regions and the backwardness of the least-favoured regions or islands. Particular attention must be paid to rural areas, areas affected by industrial transition, and regions suffering from severe and permanent natural or demographic disadvantages.
They are provided through national, regional or local authorities and focus on three priorities: reducing regional differences in wealth and wellbeing, increasing competitiveness and employment, and supporting cross-border cooperation. At present The structural funds there are two: 1) The Social Fund (ESF)Established in 1958, it promotes employment for unemployed people and disadvantaged social groups, particularly by financing training measures. It finances activities in the social sphere. Its role is to support everything that helps sustain employment through investment in human capital. Its main aims are to prevent and reduce unemployment, develop new occupational profiles and improve skills to facilitate access to jobs, and improve the effectiveness of education and vocational training systems. Beneficiaries are primarily young people, women, older people, the long-term unemployed, workers at risk of exclusion from the labour market and groups at risk of social exclusion. 2) European Regional Development Fund (ERDF), established in 1975, primarily finances infrastructure development and productive investment that creates jobs, particularly in the business sector. It finances infrastructure and technology projects in communications, energy, education, healthcare, research and technological development.
In general, the European Commission finances projects through contributions which, depending on the project, may range from 50–60% to a maximum of 75–80% of a project’s total eligible expenditure. Each call usually also specifies the maximum financial contribution rate and the minimum and maximum grants envisaged. Co-financing must be supplemented by the beneficiary entrepreneur’s own resources.
Italian entrepreneurs wishing to use European funding essentially have two options:
• Direct use of funds by participating in calls published by the bodies implementing a particular measure of an operational programme co-financed by EU funds, taking the role of ‘project promoter’. This procedure is possible only if the implementing entity carries on an economic activity registered in Bulgaria or, more specifically, establishes a company under Bulgarian law or has a branch established in the EEA (European Economic Area);
• Indirect use of funds — through direct participation in tenders published by local authorities; through carrying out construction work, supplying goods and/or services, etc., to a beneficiary that has won a tender and must implement a project co-financed by European funds (in the role of “subcontractor”). Both Bulgarian and foreign companies may participate in public tenders.
More than €7 billion is allocated to the European Structural Funds programme for Bulgaria for 2014–2020, equivalent to more than EUR 1,000 per Bulgarian citizen.
For Bulgaria's Structural Funds operational programmes for 2014–2020, more than €7 billion has been allocated in total. The scope and funding of the Operational Programme “Regions in Development” 2014–2020 amount to €1,376,788,235, with 15% co-financing from the State.
The programme has eight priority areas of action: sustainable and integrated urban development, state educational infrastructure, regional healthcare infrastructure, regional social infrastructure, regional tourism, regional road infrastructure, risk prevention and technical assistance.
Investments under the Operational Programme “Regions in Development” will be implemented throughout Bulgaria and contribute to the socioeconomic development of disadvantaged regions, to bring them closer together and reduce economic disparities across the country's territory.
The international law firm De Amicis & Petrova provides support, including with the assistance and cooperation of leading companies in the sector, throughout start-up projects, from submitting applications to the disbursement of funds. The company can then receive legal advice focused on its business needs, from incorporation and assistance with any type of legal relationship required for its operations through to possible liquidation, merger or conversion.