Bulgaria Eurozone fiscal deficit management

Bulgaria is navigating a complex budgetary framework following the initiation of an excessive deficit procedure by the European Commission in July 2026. Former Minister of Labor and Social Policy Hristina Hristova described the current process as highly complex, noting that the country is following Eurozone budget procedures for the first time. She observed that recent documents sent to Brussels and the Bulgarian National Assembly focus more on textual frameworks than specific numerical data, complicating detailed analysis.

The Bulgarian Ministry of Finance is engaged in daily communications with the European Commission to align with the European Semester framework. While the Ministry maintains that the authority to allocate public funds remains within Bulgarian jurisdiction, the Commission is currently reviewing the 2027 budget proposal submitted on October 15. An official assessment is expected by November 24.

Negotiations continue regarding public sector wage increases exceeding 5 percent, and the government is working to finalize a 2027 state budget draft that complies with both national and international commitments. The process follows a recommendation from the Council of the European Union for Bulgaria to implement corrective measures to limit net public expenditure growth.