The stop of EU funding is envisaged as a last option in the future European budget (by 2027), according to the European Commission Vice-President Valdis Dombrovskis. If countries do not take action on the recommendations made by the EC, the financing can be shifted between the different funds, and the stop of funding is the ultimate measure.
“We propose to establish the link between the implementation of the recommendations and the allocation of funds and to introduce a reprogramming mechanism”, said Valdis Dombrovskis.
The EU Employment Commissioner Marianne Thyssen added that countries are signing agreements with the EC where the funds will be headed at the beginning of the budget period. It does not matter whether governments are changing in the meantime.
“If the tasks for governments change, we are ready to negotiate, we will be flexible”, said Marianne Thyssen. “With full non-compliance, there will be a problem that we will have to solve, but I do not expect it to be necessary”, added she.
A week ago, the Commission presented its latest recommendations for individual EU countries. The first was to improve tax collection and the effectiveness of budget spending, including through actions to curb the “gray” economy. It was recommended to improve the management of state-owned companies on the basis of international experience.
The second recommendation was action be taken to ensure the supervision and security of the financial sector. It was recommended to assess bank collateral and complete changes in bankruptcy rules, as well as to encourage the operation of the secondary market for non-performing loans.
Thirdly, it was recommended to increase employment among disadvantaged people by increasing their skills. The EC has proposed to improve the provision of quality general education, especially for gypsies and other disadvantaged groups. The Commission has recommended our country to improve access to health services, tackle the shortage of health workers, and to introduce a permanent and transparent minimum income scheme.
