Atanas Pekanov: Risks to the budget deficit and the future of the Recovery Plan

20.06.2026 | Economy

Deputy Prime Minister Atanas Pekanov warns about the difficulties in achieving a 3% deficit and highlights the efforts to save funding under the Recovery and Resilience Plan (RRP), energy security, and coal-fired power plants.

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Budget Deficit and Economic Stability

Deputy Prime Minister Atanas Pekanov warned that the pursuit of a 3% budget deficit carries the risk of "choking" the economy. According to him, overly restrictive measures would have a negative impact on the standard of living of Bulgarian citizens.

"It is very difficult to achieve a 3% budget deficit this year if we do not want to choke the economy," Pekanov stated.

Recovery and Resilience Plan (RRP)

Bulgaria expects about 1 billion euros from the fourth payment, which will increase the utilized funds to 68%. Pekanov emphasized that the critical deadline for the implementation of the projects is August 31.

Energy and Coal-Fired Power Plants

Regarding the energy transition, Pekanov pointed out that Bulgaria has already reduced its emissions by 40% compared to 2019 without catastrophic consequences. The plans provide for maintaining 1.2 - 1.6 gigawatts of capacity from coal-fired power plants until 2038 as a strategic cold reserve.

Foreign Policy and Sanctions

The Deputy Prime Minister clarified the country's position regarding sanctions against Russia – Bulgaria has not imposed a veto, but has expressed reservations with the aim of protecting its national economic and energy interests, while continuing to support Ukraine.