EU launches deficit procedure against Bulgaria over 2026 budget gap

The EU Council of Finance Ministers opened a deficit surveillance procedure against Bulgaria, citing a projected 2026 budget deficit of 4.1% of GDP and an expected excess of 3% in 2027. Bulgaria, which adopted the euro earlier this year, must submit a corrective plan by 15 October.

In Canada, the unemployment rate fell to 6.5% in June, its lowest in six months, as employers added 18,200 jobs. Building permits declined 1.7% in May, reflecting weaker non‑residential construction activity.

Mexico reported a 0.8% seasonal drop in industrial output in May, driven by a 3.7% contraction in construction. Brazil’s consumer price index rose 0.16% in June, with the 12‑month inflation rate easing to 4.64%.

In the United States, initial claims for unemployment benefits unexpectedly fell to 215,000 for the week ending 4 July, below forecasts. Home sales also slipped 2.4% in June, missing expectations. The European Central Bank signaled readiness for further monetary tightening despite renewed tensions in the Gulf, while New York Fed President John Williams warned that inflation remains “much too high.”