Bulgaria placed under EU excessive‑deficit procedure

The Council of the European Union opened an excessive‑deficit procedure against Bulgaria after the country’s projected public‑sector deficit was estimated at 4.1 % of GDP for 2026, above the 3 % ceiling set by EU fiscal rules. The deficit is expected to stay above the limit in 2027 as well. Bulgaria must submit corrective measures by 15 October 2026 and follow a pathway that would bring the deficit back under the 3 % threshold by 2029. The Council also set limits for cumulative net‑expenditure growth – 4.2 % in 2026, 7.7 % in 2027, 11.4 % in 2028 and 15 % in 2029 – and noted that the country’s use of the defence‑spending escape clause does not fully explain the breach.

The procedure comes just months after Bulgaria adopted the euro on 1 January 2026, exposing the newest euro‑area member to heightened fiscal surveillance. While sanctions are not automatic at this stage, continued non‑compliance could trigger fines or further measures. The move signals EU‑wide emphasis on fiscal discipline as member states balance defence needs, energy security and social spending.