Urgent reform is needed in the planning regions in Bulgaria. The current zoning outlines increasingly greater economic imbalances in them in relation to the grant from the EU in the implementation of the cohesion policy (of convergence and overcoming economic imbalances). The problem is huge in the South-West planning region, which includes the city of Sofia. The capital sucks not only the financial, but also the human resources, mayors and regional governors are categorical.
The allocation of planning areas in the EU, as far as the cohesion policy is concerned, is made according to two main criteria - population and gross domestic product as a standard of purchasing power, referred to the average European values. Where are the distortions of the last 15 years that today seem dramatically unfair?
From the point of view of the gross domestic product, the EU rules are clear - for 100 and over 100 units, the regions receive 30 percent co-financing for the projects of investors and businesses. Regions in transition, which have a GDP of 75 to 100 units compared to the EU average, receive a 60% grant, and less developed regions – 85%.
The Southwest region in 2022. reached almost 100%, which reduced EU aid to business to 30%. And while the levels for the capital already reach 130%, the other regions - Pernik, Kyustendil and Blagoevgrad - have between 31 and 34 percent GDP as a standard of purchasing power, and Sofia region - 54%. The bundling of these areas with the capital Sofia limits their access to European funds, makes them unfavorable for investments and actually hinders the effective cohesion policy, according to the analysis of the Institute for Market Economy.
It was also confirmed at a meeting by the mayors from the Association of Southwest Municipalities.
"Sofia must definitely be separate. We should not be with Sofia", emphasized the mayor of Kyustendil Ognyan Atanasov. In his words, this packaging is already bearing "its negative fruits" – depopulation of municipalities and a drop in the standard of living.
"What business receives as aid from Europe is 70% in all other regions. Because we are together with Sofia and as a region we are "very good", our business receives 30% co-financing. This is killing business, making investors invest in the other 5 regions and not the Southwest. Sofia sucks us both as people and as a business! Which normal business will decide to invest with a 30% grant in Southwest Bulgaria and which – in all other areas at 70%? The answer is clear."
The problem is not only in the numbers and it is not only these areas that suffer.
"This makes Sofia gasp. Are there places in the kindergartens? Are there normal neighborhoods, from the new ones, with infrastructure? If there is a targeted policy to help these 4 areas, then it will be good for Sofia as well. Because we have free places in kindergartens. Our neighborhoods are developed, they have everything. But people choose to live in Sofia because of the high salaries", comments Ognyan Atanasov.
The regional governors also joined the battle for new zoning. This process must begin immediately, said Georgi Dinev, regional governor of Blagoevgrad. According to him, the goal is for the new zoning to enter into force for the program period from 2028 to 2034.
Regarding the other criterion - population, the IPI analysis shows that in 2023 two of the planning areas – The North-West and North-Central are already below the criterion of at least 800 thousand people, and the North-East and South-East are approaching them at a rapid pace. This EU criterion is already violated in the current zoning.
The mayor of Kyustendil Ognyan Atanasov points out this as another serious argument to undertake a review of the zoning.
"They might force us to keep all six regions, but format them differently. There is a way to do it – the Western region can also be done: from Vidin to the Tower without Sofia. Sofia should be separated into an independent region!"
And another energy relapse: with regard to the territorial plans for a just transition, Pernik and Kyustendil are practically disqualified, Atanasov also warns:
"We have the same problem – in both areas, the intensity of aid for companies will again be very low and will not be like in Stara Zagora – over 60%. We are currently looking for options according to regulations, how to avoid this for certain sectors and to lift it. Areas that have suffered from the closure of coal mines and plants continue to suffer from zoning."