Bulgaria faces €1.5 bn pension fund drain and budget deficit concerns

Chairwoman of Solidarna Bulgaria Vanya Grigorova warned that around €1.53 billion transferred last year to private pension funds is "a hole through which social security contributions are being drained," threatening both citizens' pensions and the state budget. She argued that redirecting these funds to the National Social Security Institute could cut the budget deficit by about 25 % and enable a salary increase next year. Grigorova also contested claims of an oversized public sector, citing OECD data that Bulgaria’s public‑sector employment stands at 16.8 %.

Former finance minister and current head of the Fiscal Council Simeon Dyankov criticised the 2026 budget proposal, saying the projected 5.7 % deficit is unrealistic and that promises to reduce the deficit in 2027‑28 cannot be met. He warned that postponing reforms to the autumn will likely trigger strikes, adding that the government's approach ignores opposition and expert advice.