Bulgaria's parliament appointed a minister on Thursday to speed the use of billions of euros of European Union aid vital for economic recovery, and fight fraud to prevent the country forfeiting the funds.

Prime Minister Boiko Borisov told lawmakers the effective use of over 11 billion euros ($15.02 billion) in EU aid earmarked for Bulgaria by 2013 was a main priority for his centre-right government which took office last July.

The EU's poorest nation, hard hit by the downturn, has tapped only a fraction of the pledged funds since joining the bloc in 2007 due to mismanagement by previous government, fraud, administrative incompetence and bureaucracy.

Parliament appointed Tomislav Donchev, 36, mayor of the city of Gabrovo in central Bulgaria, as minister of EU funds.

"Almost every week, the European Commission is fining Bulgaria millions of euros ... The new post will help the coordination of planning, managing and control of the EU funds," the tough-talking Borisov told the chamber.

The government is under growing pressure to show results in its fight against rampant organised crime and corruption by July, when Brussels will assess Sofia's progress.

The European Commission last month warned the government, which came to power on pledges to clean Bulgaria's image as the most corrupt EU state, to stop fraud with EU funds or face losing billions of aid and suffer hefty fines. [ID:nLDE61219Z]

The failure of the previous Socialist-led government to uproot high-level corruption and sever links between shadowy businessmen and high ranking officials provoked Brussels to freeze millions in aid in 2008 as punishment.

The EU executive unlocked those funds after the new cabinet took office but decided earlier this week to fine Sofia 24.5 million euros for irregularities in farm payments in 2008.

Analysts see the EU funds as one of the few tools Bulgaria has to restore economic growth. The aid is aimed at modernising Soviet-era infrastructure, farming and rural areas as well as build new roads, sewers and waste plants.
Reuters; Balkans.com