SPEECHES AND STATEMENTS

Speech by President Rosen Plevneliev to the VIII Annual Meeting of the National Association of Municipalities in Bulgaria

Mr. Deputy Prime Minister,
Members of the Cabinet
Dear Deputy Ministers
Dear Mayor of Plovdiv
Mr. Governor,
Ladies and Gentlemen,
Dear friends,

Let me thank the National Association of Municipalities of the Republic of Bulgaria, which in recent years has become an indispensable partner of the Bulgarian institutions. Thank you for participating in the Council of the President of the Republic. Municipal authorities were, and remain active, in public debates on development programming and implementation of the national priorities of the country. Undoubtedly, this is a prerequisite for the future development of our country and it will surely be based on consensus, legitimate priorities, nationwide strategies that are sustainable over time while taking into account the needs of people and regions.

The year 2012, and the upcoming 2013 are two very important years for Bulgaria. Whatever we plan and we set as priorities, projects and ways to work toward them, that we shall produce and achieve as results in 2020. Many Bulgarian municipalities already have gained experience in the absorption of EU funds. They know how to prepare and manage quality European projects. In spite of the progress achieved, it is essential that the future of the country and the municipalities is not decided piecemeal but through an integrated approached with long-term priorities remaining on the agenda.

Bulgaria will accelerate the pace of its development when it begins to be based primarily on continuity and an integrated approach to strategic planning. This is how we have worked in recent years and we are on the right track. No matter who is in power and when, regardless at what level of the state, we need to achieve the strategic goals of the state, regardless of party political affiliation, regardless of who it is. To work on national priorities, regardless of who is in power and when. It is essential to have integration, co-operation between national and local authorities. See, for example, the Bulgarian municipalities working in close collaboration with the team of Minister Donchev to simplify and clarify rules for the management of projects under the Operational Programmes.

I am convinced that this is a very good idea and I am sure that this will lead to increased efficiency and acceleration of the absorption of EU funds, by at least 15 per cent. A step in the right direction is the preparation of an Act on the management of funds from the European Union, which will help to create an effective legal framework for the management of EU funds in the next financial framework, 2014-2020. Codification of all legislation that is now scattered in more than 15 ministerial decrees will create a clear and stable system that will set out the basic principles and rules for the operation of the Funds. 2012 is the time to take stock.

I want to emphasize the implementation of procedures for the award of public contracts. It has been established by the National Audit Office and other control bodies that the rate of irregularities it is more than 70 per cent, of course, there are many who would argue about what has been checked, but the percentage is nonetheless high. You must draw your own conclusions.

From another perspective, we now have more than 4.3 billion leva disbursed from the financial instruments of the European Union. Of this 4.3 billion, there is 40 million leva in corrections. A small amount, it looks really small. We can and should be very proud of that. This is a very strong result. At the same time, of course, we should draw conclusions, because in the difficult situation in which municipal budgets are placed, that 40 million leva can significantly hinder many municipalities.

I draw your attention to the fact that in 2013 alone, a billion leva must be paid out through the Regional Development operational programme. This poses a serious challenges to our communities. They need to accelerate the pace of implementation of the projects. To put it very simply and bluntly – carry out the projects and the payments. Otherwise, you will lose money. The state has provided funds, the money is in the budget, it is in the national fund and that one billion is yours. Manage, payments and implement projects wisely and let’s boast of our success at the end of 2013.

You know that in the resources provided through contracts concluded, delays in implementation most often are the result of delayed procurement. In many municipal projects, be it hospitals, tourist attractions, integrated public transport, we are witnessing a slowdown and there is still much to be desired in terms of performance. To be more effective, you need to be creative and to standardise. Why not make standard contracts for kindergartens, cultural attractions, roads, urban municipalities, all the same. Changing current practice would increase efficiency and transparency many times over. In future, Bulgarian municipalities should be more active and establish an integrated approach in planning their own development and financial independence.

It is essential to have complex and integrated projects in each municipality. It is good when you dig up roads, to lay pipes under the Environment Operational Programme, asphalt, under the Regional Development Operational Programme, internet cables under the Transport Operational Programme. To widen pavements, to include bicycle lanes in the “Urban Environment”. Think of green areas and playgrounds.

In strategies and plans for municipal development currently being drafted, municipalities should create opportunities for development of complex and integrated projects. Good planning, based on the creation and setting of clear and transparent long-term goals, is not only the key to effective accelerated absorption of EU funds, but also is a factor in attracting sustained private investment.

Particular attention should be paid to the municipalities that received funding for development of integrated urban regeneration and development that can improve their economic, industrial and business potential.

EU funds should be seen, dear friends, not just as spending money, we already learned this, but as a multiplier and a catalyst for economic and social development. Not surprisingly, in the next programming period, projects for industrial and technological factors will receive new funding opportunities with European funds. No less important than the laying of asphalt is what will be on the tarmac, what Bulgaria produces, sells and exports.

The main goal that we have set is to build a richer and more competitive Bulgaria, rich in human capacity and potential. The steady growth of Bulgarian regions should be based reforms at the local level, competitiveness and a good business environment. Amendments to the Investment Promotion Act and public-private partnerships provide new opportunities for Bulgarian municipalities. For this reason, Bulgarian municipalities should be proactive in developing partnerships with business. They should establish a good image as a partner of business, should work for investment and take firm steps forward in the development of business and the business environment in their respective municipalities.

The implementation of administrative reform and the creation of e-government at the national level and the e-municipality are essential. Municipalities that invest in the creation of electronic services are certain to increase efficiency and create a competitive environment and benefits. This will lead to prosperity.
Reform in the water sector is still on the agenda. It should be raised here, municipalities play an important role. There are already some good examples and results achieved in the implementation of the decentralization strategy. A major positive change is to allow municipalities to generate revenue from concessions for mining, including mineral waters, building materials, for archaeological and cultural assets.

Reallocation of resources in favour of municipalities, their powers to manage, to regulate the distribution of subsidies for municipal roads, are steps in the right direction. But reform must continue, because in order to achieve the optimal allocation of power and resources between different levels of government to provide better services, concrete measures must be taken and clear goals set. I am glad that there is a clear national plan. I support every step in its implementation.

Municipalities must provide additional rights regarding ownership and management of infrastructure, ports, airports, transport terminals with local and regional importance. Procedures for the management of cultural assets, archaeological attractions, should be improved, efforts must be made to strengthen the financial, administrative and programming capacity of municipalities.

Sustainable growth, we know, cannot be achieved overnight. For this we need a vision and a plan. We know that reforms are needed, we know that there must be priorities, but also sychronisation of the actions of many institutions, all the major players on the road to economic development, so that we can achieve our goal.

By 2020, Bulgaria should have strong regions, municipalities that work and succeed together to achieve growth primarily through sustainability and co-operation. Therefore, the process of decentralization should continue to deepen and to have financial and personnel resources.

Dear friends, you will surely debate the crisis in Europe, now entering its fifth year, regarding European funds. The biggest problems of Europe now are the debt crisis, unemployment and inequality. But the economic problems should not divert us from the goal of a strong and integrated Europe. Already we have many crises in Europe - economic, political, debt, social, financial – and we should not allow a moral crisis, a crisis of the values in which we have believed and that we believe. Joining the European Union is not joining a common market of EU funds. It is joining a moral and political union. The essence of the European Union is not a market, money and debt crisis. The European Union and its essence are peace, a human project, democracy, market economy, solidarity and human spirit. The European Union is not money and accounting. The European Union is a union of values. And through his actions every day, every one of us shows where he should live.

Look at the debate on the Nobel Prize, which I refer to as an example, just two days ago, presented to the European Union for peace. Some European leaders laughed, others distanced themselves, others spoke against it. They played their own national political games, they shifted the debate, the debate about the meaning of success and the European Union, the success that unites us rather than divides us. The success of the European Union, which is measured by peace, an unprecedented 70 years, of human dignity and prosperity for 70 years now. This is Europe, that is to be European. Yes, Europe deserves the Nobel Peace Prize as no one else. And yes, Europe is all of us. We have a cause, it is that and we are working on it. Or otherwise we are only playing the situation – at European, regional, national level.
Situations usually played on the basis of every man for himself and rarely all together. For Europe, I want everyone to be together, and also European leaders to be together in this difficult time. Because everyone has a responsibility for the future of Europe.

There are three basic principles to exit from the crisis in Europe and in this Bulgaria is an example. Here, Bulgaria provides a solution. Bulgarians are disciplined. Everyone understood in every corner of Europe, the rules must be followed. Whether these are the Maastricht criteria, whether these are the rules of the EU funds, whether they are public procurement rules, those who do not follow the rules will be punished.

The second basic principle - solidarity. We are the poorest, we expect support. The Cohesion Policy is an important factor for growth and support. I want to commend Minister Donchev, the Prime Minister and the Government that defend the principles of the Cohesion Policy and that Bulgaria campaigns to receive solidarity.

The third basic principle - the principle of responsibility. Reforms must be carried out everywhere in Europe – reforms for competitiveness, reforms for growth. And here also, Bulgaria made its difficult decisions and carried out its reforms.

Dear friends,
Dear Mayors,
Mr. Popov
Mr. Deputy Prime Minister,

Thank you for giving me this opportunity to be here together with you, to share these thoughts about which I am very excited. I was the Minister of Regional Development, I know Bulgarian regions, I the see potential. I am glad that this potential is being developed and multiplied. I am grateful that all of you, that with the presidential institution, with the government, you are working to define clear priorities and projects that match them, meaningfully, working not only at national but also at regional level.

And above all, thank you, because with your actions every day so far, but also from now on, will reposition Bulgaria, because the crisis gives us the opportunity to position the country as a worthy member who has a plan and that carries it out continuously . A plan for a modern, prosperous Bulgaria. We are on the right track. Thank you for what you are doing.

I wish you success.