Pöördumine

REPUBLIC OF BULGARIA the Ministers of the ECOFIN Couiicil rFo 9 Sofia, 19 July 2024 DQ,, As you are aware the euro accession is a Iong-standing goal of Buigaria and is among the main priorities of the Bulgarian government. The current caretaker government advances the rapid impiernentation of the National Pian for the Introduction of the Euro in the Republic of Buigaria with the aim to cornplete the fuil integration of the country in the Economic and Monetary Union of the EU. 1 would like to use the opportunity to make you familiar with the progress of our ERM II post-entry comrnitrnents with a short overview of the achievernenls in an attachrnent to this letter. Buigaria acceded to the ERM EI Ofl 10 July 2020 with the expressed cornrnitment to continue on the path to euro area accession. That intent was conveyed through the adoption of an Action pian with measures to address the ERM 11 post-entry comrnitrnents in the following four areas: supervision oC the non-hanking financial sector, the insolvencv framework, the anti-money laundering framework, and state-owned enterprises with rnost of the commitments having been fuifil[ed successfully. The current impiementation rate is approximately 94%, with only two outstanding measures. The remaining ohligations pertain to the alignrnent of the composition of the State-Owned Enterprises (SOEs) hoards with the Law on Public Enterprises, which is alrnost fuily cornpleted, and the other concerns the adoption and impiementation of the SOEs’ transformation prograrnme with the aim to restructure the state-owned enterprises into joint stock companies or puhlic admiriistrative bodies. It is ilnportant to outline that even though such a prograrnrne has heen adopted in 2022, following an analysis, we are witnessing serious resistance on its impiernentation frorn society, diffcrent non-govcrnrnental organisations, the SOEs and their principals, with opposition beicig especially robust in the forestry sector. The resistance is triggered by the assertion that the analysis is based predominantly on accounting and financial data, without taking fully into account other reievant factors such as the puhiic functions of the SOEs, their legal framework and their joint fuifiilrnent of national and European policy goals. On the other hand, the policy environment and the circurnstances have changed suhstantialiy Rahandusministeerlum 2024 102, Rakovski SI. phorw: (+359 2) 9859 24)01 ininfin@ minfin.bg Sotia 1040, Buigaria fax: (÷3592)9870581 flr ..• vww,niin1in.hg  REPUBLIC OF BuL(;ARIA with new legislation and sectoral strategic docurnents in place, retlecting on the environrnent iii which the SOEs operate and on the main conclusinns of the analysis. That heing said, 1 would very rnuch appreciate if you could share your country’s national organisational model of forestry management. In particular, general information on the owncrship of the forests (what the share is between privately and puhlicly own forests) and inore specifically the legal and regulatory base; legal form of the forestry entities: governance structure and organization; public and social functions; policy objectives; administrative role, mandates and responsibilities. Also any past or present experience related to the transforrnationlrestructuring of SOEs in this field and concretc steps and stages of transforrnation, in case such processes have heen implernented. 1 hope Buigaria can benefit from the experience of your country iLi this specific sector by scrutinising your approach to the management of the state-owned enterprises with the intent to emulate germane designs. 1 would appreciate your informative reply at your earliest convenience but if possible by the heginning of September. This wiII give us an opportunity to analyse the information and assess what would suit best to our national specificities with a view of updating the SOEs transformation programme. 1 avail tnyself of the oppoatunity to express to you the assurance of my highest consideration. Sincerely yourS, LYtJDMILA PETKOVA DEPUTY PRIME MINISTER AND MINISTER OF FINANCE Enclosure: Infographic — progress of Post ERM 11 commitnient impiementation 102, Rakovski St. phone (+3592)985924)01 rninfin@iniiifirthg Sotia 14440. BuIgara fa: (+3592)9870581 www.niintin.hg  REPUBLIC OF BULGARIA MR MAGNUS BRUNNER MS RIIKKA PURRA FEDERAL MINISTER OF FINANCE MINISTER OF FINANCE REPUBLIC OF AUSTRIA REPUBLIC OF FINLAND Johannesgasse 5 Sn eilmaninkatu 1, Helsinki A-1010 Wien P0 Box 28 MR VINCENT VAN PETEGHEM MR BRUNO LE MAIRE MINISTER OF FINANCE MINISTER OF ECONOMY KINGDOM OF BELGIUM FRENCH REPUBLIC Rue dc la Loi 12 /39, rue dc Bercy 1000 Bruxelles TELEDOC 151 FR-75572 PARIS cedex 12 MR MARKO PRIMORAC DEPUTY PRIME MINISTER AND MR CHRISTIAN LINDNER MINISTER OF FINANCE MINISTER OF FINANCE REPUBLIC OF CROATIA FEDERAL REPUBLIC OF GERMANY Cabinet of the Min ister Wilhelmsirasse 97 Katanice’a 5 DE-I01]7 BERLIN /0000 Zagreb MR KOSTIS IIATZIDAKIS MR MAKIS KERAVNOS MINISTER OF FINANCE r’IINISTER OF FINANCE HELLENIC REPUBLIC REPUBLJC OF CYPRtJS 5-7Nikis Street Michael Karaoli & Gregori AJendiou Corner Place Synragnza CY-1439 NICOSIA 101 8lAthens MR ZBYNK STANJURA MR MIlIÄLY VARGA MINISTER OF FINANCE MINISTER OF FINANCE CZECH REPUBLIC HUNGARY Lerenskci 15 !-IU-]051 BUDAPEST CZ-JI8IOPRAGUE 1 J6sefn4dor tcr 2-4 MS STEPHAXIE LOSE MR JACK CHAMBERS MINIS’FER FOR ECONOMIC AFFAIRS AND MINISTER FOR FINANCE DEPUTY PRIME MINISTER IRELAND KINGDOM OF DENMARK Governnient Buildings Christianshorg Slotsplads / Upper Merrion Street 1218 KØbenhavn K DUBL!N 2 MR MART VÖRKLAEV MR GIANCARLO GIORGETTI tvHNISTLR OF FINANCE MINISTER OF ECONOMY AND FINANCE REPUBLIC OF ESTONIA ITALIAN REPUBLIC Siiur-A,neerika 1 Via XX Setteinbre 97 15001 Taliinn JT-001 87 RO?vL4 102, Rkovski Si. phon: (+359 2) 9859 2001 [email protected] Snfia 1040, Bugira tix: (÷3592)9870581 www.rniiifin.hg  REPUBLIC OF BULGARIA MR ARVILS AERADENS MR JOAQIM MIRANDA SARMENT() MINISTER OF FINANCE MINISTER OF STATE AND FINANCE REPUBLIC OF LAT VIA PORTUGUESE REPUBLIC 1 Smilsu str. Av. Infante D. Henrique, 1 LV-1919 RIGA 1149-009 LJSBOA PORTUGAL - MR (INTARE SKAIST1 MR MARCEL-IOAN BOLOS MINISTER OF FINANCE MINISTER OF FINANCE REPUBLIC OF LITHUANIA ROMANIA Litkiskiu str. 2 1 7 Apolodor Street, Sth District LT-01512 VJLNJUS code 05074/, Bucharest MR GILLES ROTH MR LADISLAV KAMENICKY MINISTER OF FINANCE MINISTER OF FINANCE THE GRANI) DUCHY OF LUXEMBOURG SLOVAK REPUBLIC Riie dc la Congrgation 3 Stefrmno’icova 5 LU-2931 LUXEMBOURG SK-81782 BRATISLAVA MR CLYDE CARUANA MR KLEMEN BOTJANR MINIS’I’ER OF FINANCE MIN ISTER OF FINANCE REPUBLIC OF MALTA REPUBLIC OF SLOVENIA ?vlaisou Deniandois 30 iipan.iceva 3 South Sireet SI-1502 LJUBLJANA VALLET]A VLT 2000 MR CARLOS CUERPO MR EELCO HEINEN MINISTER OF THE ECONOMY, TRADE MINISTER OF FINANCE AND ENTERPRISE KINGDOM OF THE NETHERLANDS KINGDOM OF SPAIN Korte Voorhout 7 Paseo dc la Castellana 162 NL-2511 CWs’-GRAVENFJAGE ES-28071 MADRID MR ANDRZEJ DOMANSKI MS ELISABETH SVANTESSON MINISTER OF FINANCE MINISTER OF FINANCE REPUBLIC OF POLAND KINGDOM OF SWEDEN (!1 Swietokrzyska 12 Finansdepartenzentct PL-00-916 WARSZA WA SE-103 33 STOCKhOLM 102, Rakovski St. phonc: (+359 2) 9859 2001 [email protected] Sofia 1040, Bulgarb fax: (+3592)9870581 www.ninfin.hg  Post-ERMII commitments 94% impiementation 1OJULY 17SEP inclusion of Approved Action Pian with the Bulgarian post-entry commitments Lev in ERM ii j2O2O Poiicy area 1 Atter 6 guarantee Ownership policy on state Amendments of the Commercial Adopted amendments to withdrawal procedures ali participation in public Law for the introduction of the MAMLA to introduce effective outstanding liabilities from enterprises was adopted requirements of Directive mechanisms for identifying O The new Law on BNB 2018 ot the Bulgarian 2019/1023 were adopted and company service providers O The composition of the ensuring the iegai Bureau were sorted out entered into force and adequate procedures for integration of the central boards of most public screening of employees bank in the Eurosystem O Amendment to the enterprises have been O A training program for involved in the provision of was adopted in February lnsurance Code, ahgned with the practitioners, a methodology company services and 2024 and will enter into force guaranteeing the swift nomination, selection and for assessing the training needs aadressing certain on the date specified in the process in the future, has appointment procedures of of practitioners, a continuing discrepancies identified within Council lmpiementing been adopted the Publlc Enterprises Act professional deveiopment Decision for the adoption ol the conformity check for the program for practitioners, the euro in Bulgaria O Annual meetings between O Analysis of the activities of transposition of AMLD V insolvency manual for the FSC and audit firms state enterprises estabiished O Ali supervisory authorities practitioners, reporting have been established as a by speciai iaws has been adopted strategies to mitigate tempiates. standardised forms regular practice to enhance carried out and adopted the risks of money laundering for insoivency and stabilisation E1OPA’s best practices O The goAML software is O Ditferent approaches for the procedures, a Code of conduct O New requirements for the impiementation of the SOE’s aiready operational and SANS and professionai standards for management system of transformation programme employees compieted practitioners were adopted insurers and reinsurers are being discussed trainings for working with it O Speciaiised electronic tools O The National risk were adopted O The preparation and within insoivency and assessment update report O The capacity of approvai of annual aggregate restructuring and for coilection and an action pian to follow tnsurance and social reporting on the performance of statistical data within the up on the risks ideritified in insurance supervision of state pubHc enterprises insoivency procedure were the nationai risk has been strengthened was adopted as a reguiar developed and are aiready assessment were adopted procedu re operational