EU Warns Romania and Cuts Bulgarian Aid on Corruption

Romania's President Traian Basescu and the president of the Magistrates’ Superior Council (CSM) Lidia Barbulescu

The European Union warned Romania to clean up its justice system and cut financial aid to Bulgaria and, leveling unprecedented criticisms at the bloc's newest countries for failing to tackle corruption.

The EU suspended about 500 million euros ($790 million) in subsidies to Bulgaria, accusing it of failure to crack down on graft and organized crime. Romania was let off with a warning to overhaul its judiciary.

“Tangible results need to be achieved in investigating, prosecuting and judging cases of high-level corruption and organized crime,” European Commission President Jose Barroso said in a statement in Brussels, as cited by Bloomberg on July 23.

The two nations joined the EU in 2007, extending the world's biggest trade bloc to the Black Sea. Both rely on EU funds to modernize roads, railways, ports, farms and public services. Romania, the bigger of the two, stands to receive 32 billion euros through 2013, while Bulgaria could gain 11 billion euros.

The freezing of Bulgaria’s funds was “overdue,” Elmar Brok, a German Christian Democrat in the European Parliament, said in a statement. “It is the only way to ensure the credibility of the EU enlargement process.”

Bulgaria and Romania rank as the bloc's most corruption-plagued countries, according to Transparency International. EU warnings have led them to undertake probes of cabinet ministers, businessmen and lawmakers. Neither has managed to convict a senior politician.

“The report points out a series of positive changes -- progress that shows Romania is going down the right road,” Romanian Prime Minister Calin Tariceanu said in an e-mail sent from his office. “We are determined to continue with a zero-tolerance policy toward those who use public positions to enrich themselves. I know a difficult road awaits us.”

In Romania, lawmakers still have the power to veto investigations of their colleagues. Prosecutors have accused 10 current and former ministers of corruption, including ex-Prime Minister Adrian Nastase and Labor Minister Paul Pacuraru but MP’s are still delaying a decision that would enable prosecutors to bring in a court of law the alleged corrupt top politicians.

Today, July 24, Romanian President Traian Basescu attended the country’s Magistrates’ Superior Council meeting. Mr. Basescu made no press statement following the reunion to which the Minister of Justice Catalin Predoiu and Chief Prosecutor Laura Codruta Kovesi were also present.

The president of the Magistrates’ Superior Council (CSM) Lidia Barbulescu said on Thursday that the European Commission’s report published on Wednesday regarding the progress of Romanian justice reform and fight against corruption was "balanced, critical and constructive". She said as CSM talks concluded today that several measures have been taken today to improve issues signaled in the EC report.

Barbulescu said that at the next session of the CSM in September a more precise analysis of the technical contents of the report would be made to establish clear moves that have to be taken.

When asked on what President Traian Basescu specifically criticized as regarding the CSM performance during talks with Council members, Barbulescu said that Mr. Basescu showed disappointment about the same issues included in the EC report.