Bulgaria and Romania have made some progress against corruption and organized crime, the European Union's executive said Wednesday, February 8 as it offered the two countries only limited hope that they might be let into the Schengen borderless area in the summer, M&C reported citing DPA.

While the two issues are not formally linked, the Netherlands has said it would veto Bulgarian and Romanian accessions until the European Commission delivered positive reports on rule of law issues.

On Wednesday, Romania was praised for having “accelerated the trial of high-level corruption cases” and for a series of legislative and administrative reforms. On January 30 a former prime minister, Adrian Nastase, was sentenced to two years for corruption.

In Bulgaria, the commission noted that: work on seizing assets from criminal groups has “delivered significant results,” a committee on conflict of interest cases “has taken its first decisions,” and the work of the judiciary has been better organized. However, “further action is needed” in both nations, commission spokesman Mark Gray cautioned, indicating that neither was yet fully complying with EU standards.

Bulgaria and Romania were subjected to an unprecedented EU screening mechanism upon their accession in 2007 because of their rule-of-law deficiencies.

The Netherlands last year blocked their bid to enter into the Schengen area - which eliminates internal borders between its member states - arguing that it could not trust them to police the EU's external borders, despite them having fulfilled all technical criteria for entry.

Dutch Europe Minister Ben Knapen said that Wednesday's reports showed progress “in both countries, especially in Romania,” but added that it was not enough for his country to change position. More good news would need to come in July, when the commission is due to make a fuller assessment on Bulgaria and Romania's efforts, he said.

EU officials have privately chided the Netherlands for its hard-line stance, suggesting it is motivated by the need to pander to the country's anti-immigration Freedom Party, which provides external support to the Dutch government.