A new procedure for supporting small and medium-sized enterprises in the three coal regions of the country is about to be announced

We will announce a new procedure to support small and medium-sized enterprises in the country's three coal regions through the Just Transition Fund, which will give stability to the assessment so that not only the European but also the Bulgarian budget is protected. We will work as quickly as possible and we hope that in September or October we will have criteria. This week, a process of termination of the current procedure has started, which will be finalised tomorrow. This was announced by the Deputy Minister of Regional Development and Public Works Desislava Georgieva at a meeting with stakeholders to discuss the upcoming actions under the procedure for economic diversification of the coal regions - Stara Zagora, Kyustendil and Pernik. The discussion was also attended by Deputy Prime Minister Atanas Pekanov, the Minister of Regional Development and Public Works arch. Ivan Shishkov, representatives of the business and the territorial administration in the three districts.

Deputy Minister Georgieva reminded that due to signals, an audit of the procedure was launched by the caretaker cabinet, which confirmed the violation of the organization of the evaluation process, subjectivism, lack of transparency and equality. Therefore, objective and clearly measurable criteria will be laid down in the forthcoming procedure.

Among the examples of a completely new evaluation model she presented were criteria that are automatically calculated in the UMIS on the basis of objective indicators such as EBITDA and financial profitability for firms, a registration requirement of at least 3 years for existing firms. In order to clarify the eligibility conditions, a specific list of eligible economic activities in the identified national priority sectors under the National Strategy for Small and Medium-sized Enterprises 2021-2030, which can receive funding, will be announced. Ineligible sectors will also be listed exhaustively. It is envisaged to eliminate subjective and unclear criteria based on business plans, analysis of future market niches and forecasts for the development of the enterprise, given that they describe "intentions" and thus are a major source of subjectivity in the assessment. The technological modernization of the companies is discussed to be linked to the training of the workers who will operate the new equipment financed by the project. In addition, the idea of reducing the de minimis grant intensity to 65% was discussed, which will lead to greater business engagement and allow more enterprises to receive support in the process of restructuring coal regions.

The remarks to the Just Transition Fund procedure are a problem for Bulgaria and Europe. Our goal is to overcome them and a solution must be found. Our intention is to announce a new procedure with clear criteria and with the candidates' own contribution, said Deputy Prime Minister Pekanov. The aim is for beneficiaries to participate in the programme in the best possible way. Our vision is to preserve the resources of the Just Transition Fund as much as possible so that people in the regions are at peace. Therefore, we will approach everyone carefully and in a balanced way, he added.

Business representatives who took part in the conversation expressed support for reducing the aid intensity of the procedure so that it can reach more companies. However, it was proposed to consider a different share for small and medium-sized enterprises, for new and existing firms. According to them, the business can best say what it needs and called for a more active dialogue and the creation of a different order of communication when formulating the criteria under the new procedure.