Bulgaria faces excessive deficit procedure: What does it mean?

Bulgaria under EC surveillance

The European Commission has announced that Bulgaria is at risk of triggering an excessive deficit procedure. The country's budget deficit is expected to remain above 4% of GDP until 2027, which necessitates urgent adjustments.

The procedure provides for enhanced surveillance and recommendations for restoring fiscal discipline, after the deficit exceeded the reference value of 3%.

Key recommendations of the Commission:

• Fiscal discipline: Improving the tax system and combating the "grey" economy.
• Administrative reform: Digitalization and increasing the efficiency of public administration.
• Energy: Reducing dependence on fossil fuels and investments in green energy.
• Social sphere: Improving the healthcare system and the quality of education.

Bulgaria has already gone through a similar procedure in 2010, successfully meeting the criteria by 2012. Now, the country faces the challenge of balancing defense spending with the need for fiscal consolidation.