EU Says Bulgaria Must Tackle Organised Crime Before Joining

Bulgaria was warned yesterday that it must do more to stamp out corruption and organised crime, or risk a delay in its entry to the European Union.

The European commission said a series of contract killings in Bulgaria was a threat to the rule of law. "The frequent contract killings of people linked to organised crime groups seldom give rise to successful investigations and prosecutions and continue to represent a challenge to the rule of law in the country," the commission said in its report.

The commission ruled that Bulgaria and its northern neighbour, Romania, will be allowed to join the EU in January provided that they introduce a number of reforms by the autumn. The commission made clear that Romania was ahead of Bulgaria when it highlighted "serious concerns" in just four technical areas.

Sofia was warned about "serious concerns" in six areas. The report said: "While [the fight against organised crime] has been a stated national priority there are still no tangible results in investigating and prosecuting organised crime networks, including the implementation of a multi-disciplinary strategy."

Jose Manuel Barroso, the commission president, flew to the region last night to demand greater reforms, making clear the deep unease in Brussels about Bulgaria. "We are very serious about this. If there is no progress between now and October we will have to say it."

He portrayed the ruling as a green light for entry, subject to more reforms. His remarks indicate that the commission is highly unlikely to delay Romania and Bulgaria's entry until January 2008 - its only sanction. This would mean separating the two countries, something the commission is loth to do, because Romania is all but ready to join. It is understood to have decided that a delay would provoke a backlash that would harm reforms.

The six reforms demanded in Bulgaria are: "tangible results" in prosecuting organised crime networks; more efficient measures to stamp out corruption and fraud; stepping up the fight against money laundering; strengthening controls over structural and cohesion funds; guaranteeing that agricultural funds will be spent properly; and improving the safety of animal byproducts.

Romania was told to improve the system for making direct payments to farmers; guarantee that farm subsidies will be distributed properly; improve safety on animal byproducts; and ensure that IT systems are compatible with the EU for the collection of VAT.

Both countries welcomed the decision. But Boris Velchev, Bulgaria's prosecutor general, warned that it would be impossible to produce a series of criminal convictions in a few months.

The commission's cautious approach shows how the climate has changed after the rejection of the EU constitution last year by French voters, many of whom were uneasy about EU enlargement.

One of the EU's new recruits was told yesterday that it could not join the euro even though it has one of the highest growth rates in the union. The Lithuanian government, whose economy grew at six times the eurozone rate last year, indicated that it might challenge the decision of the commission and European central bank. Its inflation is 2.7% - or 0.1% above the required level set by the EU's three best-performing countries. Lithuania is angry because the euro rules were ignored when Italy and Greece joined the club.