Reforms in the Agricultural Sector: New Law on Cooperatives Proposed and Criminalization of Subsidy Frauds

Budgetary Challenges and the Pursuit of Balance

The adopted state budget for the current year reflects the inherited state and existing state obligations, stated the Chairman of the Committee on Agriculture, Food, and Forestry in the National Assembly, Yavor Gechev. According to him, the financial framework was adopted with a deficit of over 5%, which is inevitable to avoid interruptions in contract payments that would affect the economy.

"Our philosophy was to tell the whole truth, to consume the reluctance this year, and for the next year to strive for a balanced budget in accordance with the Maastricht criteria," emphasized the deputy from "Progressive Bulgaria."

Digitalization and the Fight Against Speculation

One of the key goals is the removal of bureaucracy through e-government. The implementation of electronic registers is forthcoming, which will use automated data analysis to detect anomalies in invoices and certificates, forwarding them to the relevant authorities such as the Bulgarian Food Safety Agency (BFSA), the National Revenue Agency (NRA), the Commission for Protection of Competition (CPC), and the Commission for Consumer Protection (CCP).

In the area of food prices, the introduction of so-called "French labeling" is planned to guarantee the origin and quality of Bulgarian products. At the same time, work is being done to remove "defects" in the supply chain, with the aim of distinguishing real small producers from traders operating without the necessary scale.

New Model for Cooperatives and Agricultural Ownership

By the end of the year, the development of a new section in the legislation dedicated to agricultural cooperatives is expected. The new framework will allow farmers to unite for greater commercial power while preserving their personal ownership, and will also provide for eased tax conditions.

Regarding agricultural land, Yavor Gechev noted that a moratorium is being introduced on the sale of land from "white spots" by municipalities. The goal is to create a sustainable land model where small producers in sectors such as fruits and vegetables can combine areas of 100–200 decares with appropriate infrastructure.

Criminal Liability for Subsidy Frauds

Changes are being discussed in Parliament that will turn systemic frauds with agro-subsidies from administrative violations into crimes with criminal liability. Currently, repeated violations are punished only by the withdrawal of the subsidy, but the new measure will aim for stricter retribution for entities that commit systematic frauds.

"Real farmers need production, not just the absorption of money. When we tighten control and introduce self-control through cooperatives, real producers will receive significantly more funds," Gechev concluded.