The European Commission report being released on July 23 2008 will not recommend the imposition of a safeguard clause against Bulgaria, media reports suggested, while Bulgaria's Deputy Prime Minister in charge of the use of EU funds says that European operational programme funds for the country are not at risk.

According to a report by Europe Gateway on July 19, the EC will choose the route of support rather than sanctions to ensure that Bulgaria makes progress in judicial reform and against organised crime and corruption.

A draft copy of the report that has leaked and is circulating on the internet says that Bulgaria has produced no significant results against corruption, and there has been no progress in confiscation of assets acquired through crime.

The draft version of the report says that financing from pre-accession funds could be terminated and structural funds frozen because of the Bulgarian Government's inability to efficiently manage them.

While the report does not recommend the use of a safeguard clause, it says that Bulgaria's admission to the Schengen visa agreement will be delayed.

The draft report calls for a wide range of efforts to improve performance substantially in problem areas, from lack of administrative capacity, ineffectiveness in preventing corruption at the highest levels and "endemic" corruption in health care and education.

The reports also cites the problems of vote-buying, witness protection and says that no more than modest progress had made to reduce corruption in the judiciary.

In a statement on July 18, Meglena Plougchieva, the deputy prime minister appointed a few months ago to oversee the use of EU funds, said that the funds allocated for Bulgaria through operation programmes were "not at risk".

There has been a series of media reports suggesting that Bulgaria's EU funding is to be cut off or at least substantially reduced or suspended. Plougchieva said that missions from the European anti-fraud office Olaf would be visiting Bulgaria.

The action plan to reform the use of Sapard funds that the EC had requested from Bulgaria would be presented to the EC on July 23, a week ahead of deadline, Plougchieva said.