A European Commission report unveiled in the European Parliament in Strasbourg today recommends that Bulgaria and Romania be admitted to European Union membership on January 1 2007, but subject to strict monitoring of key areas.

Addressing the European Parliament, EC president Jose Manuel Barroso said that the commission had just adopted a report which concluded that both countries were ready to "take on all the rights and responsibilities as EU members on January 1 2007".

He congratulated the peoples and authorities of Bulgaria and Romania for all the efforts they had undertaken to make accession possible.

Barroso said that some areas required further action up to, and beyond, accession.

A special mechanism for co-operation would be set up to fulfil requirements regarding action against organised crime, against corruption, and to reform the judiciary.

Specific benchmarks would have to be met.

Barroso said that the EC would report regularly to the European Parliament and European Council.

If necessary, in the event of insufficient progress, safeguard clauses would be invoked.

The report said that Bulgaria had made progress in its campaign against organised crime, but these efforts would have to be pushed further after accession, and progress would be subject to special monitoring post-accession. Bulgaria and Romania will be required to provide regular progress reports, and monitoring will continue until the EU is satisfied that sufficient progress has been made. Similar monitoring will be in effect over reform of the judiciary.

The report criticised the low success rate in prosecuting those behind high-profile organised crime murders, and in countering people trafficking, illegal drug smuggling, money laundering and the illegal possession of firearms.

It called for improved co-operation among law enforcement authorities in Bulgaria and between these authorities and financial institutions, and improved co-ordination with Europol.

The report also expressed concern about shortcomings in Bulgaria's capacity to absorb EU funding.

The two countries will also have to step up control over veterinary health and food control and improve transparency in the allocation of European funds for agriculture.

If management of EU funds fails to come up to standard, European subsidies for agriculture could be cut by 25 per cent, meaning a shortfall of millions of euro from funds already allocated.

The strict conditions being attached to accession are widely seen as representing firm pressure on the two countries to continue reforms to justify the recommendation to allow them into the EU. In the event of continued failure, the countries could face severe penalties in the form of safeguard clauses being invoked.

The September 26 EC report is a sequel to the May report by the commission, that in the case of Bulgaria identified six areas, including organised crime and judicial reform, that required urgent attention to enable membership of the EU at the start of 2007.

Today's report confirming the 2007 accession date follows the signing of the accession treaty between Bulgaria, Romania and the EU on April 25 2005.

Accession negotiations between the EU and Bulgaria were finalised as confirmed at a meeting of the European Council in Brussels on December 17 2004. At this meeting, the Council said that the accession date was expected to be January 2007.

In December 1999, the European Council agreed to open accession negotiations with Bulgaria, Romania, Slovakia, Latvia, Lithuania and Malta and to recognise Turkey as an applicant country.

The current criteria for EU enlargement were set at a European Council meeting in June 1993.

Bulgaria's current tripartite coalition Cabinet, which took office in August 2005, has made its key priority Bulgarian membership of the EU as of January 2007.

Bulgarian-language media reports said that the moment of accession would be celebrated at a joint ceremony by Bulgaria and its northern neighbour at a bridge spanning the Danube, near the Bulgarian city of Rousse.