Bulgaria faces calls for fiscal restraint as GERU leaders warn of debt rise and price spikes

GERB politicians have criticised the current Bulgarian government's fiscal direction. Deputy Krasimir Valchev said the country has abandoned the “prudent budget policy” that kept deficits low and taxes modest from 1997 to 2020, blaming Finance Minister Asen Vasilev’s “policy of stable poverty” for increased spending, higher debt and inflation. He urged a return to balanced budgets, limited public debt and protection of low tax rates, warning that current spending threatens competitiveness and the trade‑balance.

Party leader Boyko Borissov echoed the concerns, saying all parties except GERB have pursued “a void” ahead of Bulgaria’s euro‑zone entry, leading to a loss of price‑control mechanisms. He accused the government of acting like a “presidential institution” that avoids accountability, and warned that Bulgaria has entered a punitive fiscal procedure after previously being praised for fiscal discipline and high EU fund absorption. Both officials called for stricter oversight, reduced spending on low‑return projects, and reforms to restore fiscal stability before EU integration.