Bulgaria Calls for Balance Between EU Integration and National Interests in Financial Markets

Finance Minister Temenuzhka Petkova represented Bulgaria at the regular meeting of the EU Economic and Financial Affairs Council (ECOFIN) held in Brussels.

The Council reached a common position on the revision of Directive 2006/112/EC regarding VAT rules on distance sales of goods imported from third countries, and import VAT in general.

Ministers reviewed progress on key legislative initiatives in financial services, focusing on reducing administrative burdens.

The European Commission presented its new Savings and Investment Union strategy, aiming to improve financial opportunities for EU citizens.

Minister Petkova stressed that integration of EU capital markets must go hand in hand with the development of national financial ecosystems, essential for funding startups and SMEs. Regarding changes in the securitization framework, she stated that reforms must not compromise financial stability or investor protection.

A political debate was held on the Commission’s March 19, 2025 proposal for a Regulation establishing the Security and Action for Europe (SAFE) instrument. Minister Petkova backed the initiative and emphasized the need for enhanced European defense capacity, calling for flexibility and streamlined procedures.

She insisted eligibility criteria reflect the EU’s Capability Development Plan and highlighted the importance of cross-border cooperation, harmonization, interoperability, and involvement of SMEs and startups in value chains.

The Council approved updated Recovery and Resilience Plans for the Netherlands, Portugal, Slovakia, and Spain.

During her visit, Minister Petkova welcomed the European Commission’s positive assessment of Bulgaria’s 2025–2028 medium-term fiscal plan, describing it as key to maintaining stable and sustainable public finances.