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.