# Bulgaria budget and fiscal crisis 2026–27

> Live situation record from CLSTR: https://clstr.news/situations/bulgarias-new-government-tackles-budget-shortfalls-judicial-overhaul-and-sectorwide-reforms
> Updated: 2026-09-07T08:02:15.000Z. Sources: 200. Developments: 297.

In early May 2026, the interim government secured €400 million from the EU Recovery and Resilience Plan while the cash-based deficit widened to €1.75 billion. A new coalition promised fiscal tightening, but by July, the projected primary deficit of 5.7% of GDP far exceeded the EU 3% ceiling, triggering an excessive-deficit procedure. 

Political tensions escalated as President Iliana Yotova declined to veto the 2026 budget, a move described by some as “cynical.” The GERB-SDS coalition and the “Continue the Change” (PP) party filed constitutional complaints alleging the budget violates the EU Stability and Growth Pact. The Constitutional Court has since merged these into a single proceeding. Opposition members, including those from Democratic Bulgaria, have criticized the budget as “flawed” and called for government resignation.

Economists warn of a €0.5 billion shortfall in the pension system. In the first half of 2026, pension expenditures reached approximately €6.5 billion, a 10.2% increase from 2025. Former Economy Minister Nikolay Vasilev has labeled the 2026 budget the country’s “most catastrophic” due to the deficit and lack of structural reforms, further criticizing state intervention in market prices as “state communism.”

Regarding labor policy, Minister Natalia Efremova announced a “historical breakthrough” in establishing a new mechanism for determining the 2027 minimum wage. In late August, the Ministry of Finance released budget instructions projecting a monthly minimum wage of €660 for 2027, a 6.5% increase, followed by €680 in 2028 and €710 in 2029. These projections, intended to align with Eurozone integration goals, have drawn criticism from labor unions, who argue the €660 figure fails to protect purchasing power and falls below the €690 that would have been achieved under a previous calculation formula. Economists remain divided on whether such wage adjustments will incentivize technological investment or outpace productivity growth.

## Claims

- GERB‑SDS and Continue the Change filed constitutional complaints against Bulgaria's 2026 state budget at the Constitutional Court. (corroborated by 8 sources)
- The complaints allege the budget violates the Constitution, the Law on Public Finances, the Treaty on the Functioning of the EU and the Stability and Growth Pact. (corroborated by 8 sources)
- The complaints were submitted one day after the budget law’s publication. (corroborated by 8 sources)
- The complainants warn the budget risks a high deficit and rising public debt. (corroborated by 8 sources)
- The complaint was signed by 50 members of parliament. (corroborated by 7 sources)
- The 2026 state budget was adopted by parliament on 24 July. (corroborated by 7 sources)
- President Iliana Yotova promulgated the 2026 state budget. (corroborated by 7 sources)
- If the Constitutional Court annuls the budget, the previous extendable fiscal law will remain in force. (corroborated by 7 sources)
- Bulgaria’s annual inflation rate in June 2023 was 5.4% and monthly inflation was –0.9%. (corroborated by 4 sources)
- Prices for hotels, restaurants and accommodation services in Bulgaria have risen between 20% and 30% over the past two and a half years. (corroborated by 4 sources)
- Prices for services such as hairdressers, personal care, repairs and training have increased by about 20% annually in Bulgaria. (corroborated by 4 sources)
- Average wages in Bulgaria grew by about 13% in the first quarter of 2026 compared with the same period a year earlier. (corroborated by 4 sources)

## Timeline

### 2026-09-07: Greece and Bulgaria implement major labor and wage reforms

Greece and Bulgaria face significant labor and economic shifts as Greece implements a 2.2 billion euro package to raise minimum wages and public sector benefits, while Bulgaria debates its low-wage status.

15 sources. https://clstr.news/cluster/greece-and-bulgaria-diverge-on-minimum-wage-projections

### 2026-08-28: Bulgaria proposes minimum wage increases through 2029

Bulgaria's Ministry of Finance has proposed a minimum wage of 660 Euro for 2027, with further increases planned through 2029 as part of the country's Eurozone integration strategy.

5 sources. https://clstr.news/cluster/bulgaria-proposes-660-euro-minimum-wage-for-2027-1

### 2026-08-21: Bulgaria Tripartite Council fails to agree on 2027 minimum wage

Bulgaria's Tripartite Council failed to agree on the 2027 minimum wage amount, though a new formula setting a range between 620.20 and 672.80 euros has been established.

4 sources. https://clstr.news/cluster/bulgaria-introduces-new-minimum-wage-mechanism

### 2026-08-18: Bulgaria Social Minister announces progress on new minimum wage mechanism

Bulgarian Social Minister Natalia Efremova announced progress on a new minimum wage mechanism, with an agreement expected by the end of the month to implement a modernized model by 2027.

3 sources. https://clstr.news/cluster/bulgaria-social-minister-announces-progress-on-new-minimum-wage-mechanism

### 2026-08-17: Nikolay Vasilev criticizes Bulgaria’s 2026 Budget

Former Economy Minister Nikolay Vasilev criticized Bulgaria’s 2026 Budget as “catastrophic,” warning against state price controls and high deficits while defending market-driven inflation.

2 sources. https://clstr.news/cluster/nikolay-vasilev-criticizes-bulgarias-2026-budget

### 2026-08-17: Bulgaria pension expenditures reach €6.5 billion in first half of 2026

Bulgaria's pension expenditures rose 10.2% to nearly €6.5 billion in the first half of 2026, with the average monthly pension increasing to €517.08.

5 sources. https://clstr.news/cluster/bulgaria-pension-expenditures-reach-65-billion-in-first-half-of-2026

### 2026-08-16: Bulgaria negotiates new annual minimum wage mechanism

Bulgarian social partners are negotiating a new annual mechanism for determining the minimum wage, targeting 2027 with proposed ranges between 692 and 750 euros.

12 sources. https://clstr.news/cluster/bulgarias-labour-minister-pledges-minimum-wage-increase-by-2027

### 2026-08-06: Bulgaria may sharply raise social security thresholds amid budget deficit

Bulgaria may boost social‑security income thresholds without raising rates, increasing contributions and prompting new taxes as the government seeks to cut a large pension deficit ahead of the EU‑reviewed 2027

2 sources. https://clstr.news/cluster/bulgaria-may-sharply-raise-social-security-thresholds-amid-budget-deficit

### 2026-08-05: Bulgarian Cabinet Starts 2027 Budget Process, Revises 2026‑28 Forecast

Bulgaria’s cabinet approved the 2027 budget process, updated the 2026‑28 medium‑term forecast, and lifted export restrictions on oil products amid energy‑security concerns and U.S. sanctions on Lukoil.

2 sources. https://clstr.news/cluster/bulgarian-cabinet-starts-2027-budget-process-revises-202628-forecast

### 2026-08-03: Bulgaria's Constitutional Court Accepts Budget 2026 Complaints

Bulgaria's Constitutional Court unanimously accepted three GERB and PP complaints on the 2026 budget, merging them into case 15/2026; the minister says the budget is sound, while the court warns severe cuts may

6 sources. https://clstr.news/cluster/bulgarias-social-minister-nataliya-efremova-defends-2026-budget-amid-constitutional-court-challenges

### 2026-08-02: Boyko Borisov accuses Democratic Bulgaria of breaching budget deficit law

Boyko Borisov says Democratic Bulgaria broke the 3% deficit rule, violating Bulgarian law and EU fiscal pact, and calls for right‑wing cooperation ahead of September’s presidential race.

4 sources. https://clstr.news/cluster/boyko-borisov-accuses-democratic-bulgaria-of-breaching-budget-deficit-law

### 2026-08-01: Bulgaria's Pension System Faces €0.5bn Deficit and EU Sanction Risk

Bulgaria's pension budget faces a €0.5bn shortfall, risking EU sanctions as outdated labour categories cost €400m and officials receive 20 salaries, while engineers get only two.

2 sources. https://clstr.news/cluster/bulgarias-pension-system-faces-05bn-deficit-and-eu-sanction-risk

### 2026-07-31: Bulgaria's government adopts flawed budget, opposition MP demands resignation

Democratic Bulgaria MP Pavel Popov says Bulgaria's new budget is flawed, citing a huge deficit and missing reforms, and calls for the government's resignation.

2 sources. https://clstr.news/cluster/bulgarias-government-adopts-flawed-budget-opposition-mp-demands-resignation

### 2026-07-31: Bulgaria's 2026 Budget Faces Constitutional Challenge

GERB‑SDS and PP filed constitutional complaints, signed by 50 MPs, challenging Bulgaria's 2026 budget over a 5.7% deficit, alleged legal violations, and potential debt risks; the Constitutional Court has opened

10 sources. https://clstr.news/cluster/bulgarias-2026-state-budget-challenged-in-constitutional-court

### 2026-07-30: Bulgaria's Social Minister Efremova announces minimum wage rise and insurance reforms

Bulgaria's Social Minister Nataliya Efremova says the €620.20 minimum wage will rise by 2027, insurance thresholds will increase from Aug 2026, and state employees will start sharing their contributions.

7 sources. https://clstr.news/cluster/bulgarias-labour-minister-natalia-efremova-says-minimum-wage-to-rise-above-620-by-2027

### 2026-07-29: Bulgaria President Iliana Yotova Refuses Budget Veto, Triggering Political Fallout

Bulgaria’s Finance Ministry reported a 1.9% deficit for the first half of 2026, with revenues up 8.1% and spending at €23.99 bn. President Iliana Yotova declined to veto the budget, drawing criticism and cauti​

7 sources. https://clstr.news/cluster/bulgarian-mp-anton-kutev-says-effort-to-discredit-ilya-yotov-fuels-protests

### 2026-07-28: Bulgaria raises self‑employed health insurance contribution to €24.81 per month

From 1 Aug 2026, Bulgaria’s self‑employed must pay €24.81 monthly health insurance, based on a higher minimum taxable income; payments are due by the 25th of the following month, with rights suspended after 3+

2 sources. https://clstr.news/cluster/bulgaria-raises-selfemployed-health-insurance-contribution-to-2481-per-month

### 2026-07-26: Bulgaria's 2026 State Budget Declared Unconstitutional by GERB Leader

GERG leader Boyko Borisov denounced Bulgaria’s 2026 budget as unconstitutional for breaching the 3% deficit limit and will challenge it in the Constitutional Court; Vice‑premier Atanas Pekanov defended its law‑

3 sources. https://clstr.news/cluster/bulgarias-2026-state-budget-declared-unconstitutional-by-gerb-leader

### 2026-07-25: Bulgaria faces higher maternity benefits, budget costs and inflation

Bulgaria may raise early‑return maternity benefits to 75%, opposition warns the 2026 budget will cost each citizen €400, and inflation eases to 5.4% while service prices keep climbing.

11 sources. https://clstr.news/cluster/bulgaria-to-increase-maternity-benefit-to-75-for-mothers-returning-early

### 2026-07-24: Bulgaria's 2026 Budget Faces Criticism Over Limited Reforms, Says Vasyl Velev

Vasyl Velev says Bulgaria's 2026 budget removes hidden liabilities but lacks bold reforms, noting a 7.2 bn lev deficit and urging stronger measures despite modest tax and cost‑cutting gains.

5 sources. https://clstr.news/cluster/bulgarias-2026-budget-faces-criticism-over-limited-reforms-says-vasyl-velev

### 2026-07-24: Bulgaria's National Children's Hospital Funding Excluded from 2026 Budget

Bulgaria's GERB party says the 2026 budget omits any money for the National Children's Hospital, a project pledged by the prime minister, and a parliamentary proposal to fund it was rejected after many abstain.

2 sources. https://clstr.news/cluster/bulgarias-national-childrens-hospital-funding-excluded-from-2026-budget

### 2026-07-24: Bulgaria Allows Purchase of Missing Pension Insurance Periods

Bulgaria permits buying missing pension insurance periods via three legal routes—education, basic pension shortfall, or political repression—costing roughly 22‑23 months of contributions.

2 sources. https://clstr.news/cluster/bulgaria-allows-purchase-of-missing-pension-insurance-periods

### 2026-07-23: Bulgaria's Inflation Spike Tied to Domestic Spending and Debt

Bulgaria's inflation exceeds EU levels, fueled by domestic spending, new debt and wage hikes; ECB chief Lagarde urges fiscal discipline before euro adoption.

2 sources. https://clstr.news/cluster/bulgarias-inflation-spike-tied-to-domestic-spending-and-debt

### 2026-07-22: Bulgaria approves 2026 state budget with 5.7% deficit

Bulgaria’s parliament approved the 2026 state budget with a 5.7% deficit, €7.2 bn shortfall, up to €10.1 bn new debt, and cuts to ministerial bonuses.

17 sources. https://clstr.news/cluster/bulgaria-adopts-2026-state-pension-and-socialinsurance-budget

### 2026-07-20: Bulgaria's National Culture Fund audited over improper clothing expenditures

Bulgaria's National Culture Fund audit uncovered misuse of over 600,000 lev on clothing items and highlighted salaries below Sofia's average, prompting reforms and a deadline for corrective measures.

5 sources. https://clstr.news/cluster/bulgarias-national-culture-fund-staff-salaries-below-sofia-average-amid-audit-findings

### 2026-07-20: Bulgaria joins eurozone on Jan 1 2026, boosting financial stability

Bulgaria entered the euro area on Jan 1 2026, ending currency risk, gaining ECB access and expecting lower loan rates and higher investor confidence.

2 sources. https://clstr.news/cluster/bulgaria-joins-eurozone-on-jan-1-2026-boosting-financial-stability

### 2026-07-20: Bulgaria confronts tighter eurozone credit while launching proactive investor outreach

Eurozone firms see higher loan rates and fees, especially SMEs, while Bulgaria rolls out fast‑track measures to lure high‑tech investors and cut red tape.

3 sources. https://clstr.news/cluster/bulgaria-confronts-tighter-eurozone-credit-while-launching-proactive-investor-outreach

### 2026-07-20: Bulgaria's 2026 budget raises pensions, wages amid fiscal strain

Bulgaria's 2026 budget, now in second reading, projects a 5.7% GDP deficit and raises pensions 7.8%, wages 5% and the minimum wage to €620, while rejecting opposition social‑spending proposals.

13 sources. https://clstr.news/cluster/bulgarias-konstantin-prodanov-pledges-pension-and-salary-hikes-despite-tight-finances

### 2026-07-19: Boyko Borisov slams Bulgarian government on Ukraine declaration and budget

GERB leader Boyko Borisov denounced the Bulgarian government for mixed messages on a Ukraine support declaration, a deceptive budget, and electoral‑code changes, urging transparency ahead of the presidential‑e​

6 sources. https://clstr.news/cluster/boyko-borisov-slams-bulgarian-government-on-ukraine-declaration-and-budget

### 2026-07-19: Bulgaria's Black Sea eateries face price hikes as tourists turn to supermarkets

Rising restaurant prices on Bulgaria's Black Sea coast push tourists to buy groceries, with consumers citing costly dishes and industry leaders pointing to market‑driven pricing.

5 sources. https://clstr.news/cluster/bulgarias-black-sea-eateries-face-price-hikes-as-tourists-turn-to-supermarkets

### 2026-07-19: Bulgaria's property market sees 18% drop in transactions, prices could fall up to 30%

Bulgaria’s property market contracts 18% in 2026, with regional transaction drops, rising mortgage‑financed sales and expert forecasts of 20‑30% price declines by 2029.

9 sources. https://clstr.news/cluster/bulgarias-property-market-sees-18-drop-in-transactions-prices-could-fall-up-to-30

### 2026-07-19: Bulgaria's National Revenue Agency faces tax crackdown and bribery scandal

Bulgaria's tax agency launched a large inspection sweep in Plovdiv, warning 68 businesses of possible sealing, while two inspectors were arrested for demanding a €300 bribe in Cherno Morets and placed on leave.

9 sources. https://clstr.news/cluster/bulgaria-tax-inspectors-arrested-for-bribery-during-black-sea-checks

### 2026-07-19: Bulgaria sees dairy prices rise while fruit and vegetable costs diverge

Bulgaria's wholesale index fell 0.43% to 2.342 points as dairy prices rose sharply while many fruits and vegetables, notably peaches and zucchini, showed large price swings.

3 sources. https://clstr.news/cluster/bulgaria-sees-dairy-prices-rise-while-fruit-and-vegetable-costs-diverge

### 2026-07-16: Bulgaria's tax agency issues 1,500 fines for unjustified price hikes

Bulgaria's National Revenue Agency has issued 1,500 fines for unjustified price hikes, totalling €1.7 million, after inspections of hundreds of retailers in Plovdiv and the Black Sea coast, sealing a nightclub

5 sources. https://clstr.news/cluster/bulgarias-tax-agency-issues-1500-fines-for-unjustified-price-hikes

### 2026-07-16: Bulgaria's tax agency launches midnight raid on Plovdiv's Kapana venues

Bulgaria's tax authority carried out a midnight inspection of 36 venues in Plovdiv's Kapana district, finding 10 violations and extending a wider summer crackdown on tax and labor compliance.

2 sources. https://clstr.news/cluster/bulgarias-tax-agency-launches-midnight-raid-on-plovdivs-kapana-venues

### 2026-07-16: Bulgaria pushes health reform with unified drug pricing and parliamentary debate

Bulgaria's parliament proposes law changes to centralize drug procurement and equalize hospital prices, while the Bulgarian Medical Union urges expert debate to ensure transparent, data‑driven health reforms.

7 sources. https://clstr.news/cluster/bulgarias-progressive-party-pushes-law-to-unify-drug-prices-across-all-hospitals

### 2026-07-16: Bulgaria's Black Sea resorts hit 50‑60% weekday occupancy, wide restaurant price gaps

Bulgarian Black Sea hotels see 50‑60% weekday occupancy, 15‑20% down from last year, while restaurant meals range from €4 to €75; officials cite service quality and upcoming reforms.

3 sources. https://clstr.news/cluster/bulgarias-black-sea-resorts-hit-5060-weekday-occupancy-wide-restaurant-price-gaps

### 2026-07-16: Plamen Tonchev nominated again as head of Bulgaria's DANS agency

Bulgaria’s cabinet has nominated former DANS chief Plamen Tonchev for a new term; a parliamentary hearing will review his candidacy amid debate over agency reforms.

2 sources. https://clstr.news/cluster/plamen-tonchev-nominated-again-as-head-of-bulgarias-dans-agency

### 2026-07-16: Bulgaria's Parliament debates sweeping changes to the Electoral Code

Bulgaria's parliament will review six bills to overhaul the Electoral Code, proposing wider machine voting, fewer limits on overseas polls, removal of residency rules, tighter voter ID checks, and shifting vote

5 sources. https://clstr.news/cluster/bulgarias-parliament-debates-sweeping-changes-to-the-electoral-code

### 2026-07-15: Bulgarian government allocates €28.7 million for schools, sports facilities and teacher transport

Bulgaria approves €28.7 million for education, covering teacher transport, school and sports infrastructure, and student dormitory upgrades.

2 sources. https://clstr.news/cluster/bulgarian-government-allocates-287-million-for-schools-sports-facilities-and-teacher-transport

### 2026-07-15: Bulgaria's 2026 state budget passes first parliamentary reading

Bulgaria's parliament passed the 2026 state budget on first reading (143‑81), noting a 5.7% deficit, debt over 30% of GDP, and measures like a 5% public‑sector wage rise and higher taxes.

7 sources. https://clstr.news/cluster/bulgarias-2026-state-budget-passes-first-parliamentary-reading

### 2026-07-15: Bulgaria's Culture Minister probes missing 400 decares and former NDK directors' unpaid salaries

Bulgaria's culture minister reports 400 decares of land missing from a public asset and says former NDK directors will not return overpaid salaries, prompting legal action and a new board appointment.

2 sources. https://clstr.news/cluster/bulgarias-culture-minister-probes-missing-400-decares-and-former-ndk-directors-unpaid-salaries

### 2026-07-15: Bulgaria's online grocery sales surge as consumers cut bread and embrace bio, gluten‑free foods

Over half of Bulgarians now shop for food online, with the top retailer up 50% to €88 m; households cut bread, buy more fresh, bio, gluten‑free and pet foods, spending about €3,713 per person annually.

2 sources. https://clstr.news/cluster/bulgarias-online-grocery-sales-surge-as-consumers-cut-bread-and-embrace-bio-glutenfree-foods

### 2026-07-14: Bulgaria's June inflation falls but annual rate stays above 5% amid growing budget deficit

June 2026 Bulgarian inflation fell 0.9% month‑on‑month but stays above 5% annually; budget deficit widens after euro adoption, with plans to curb it by 2027.

8 sources. https://clstr.news/cluster/bulgaria-sees-63-inflation-and-record-rise-in-consumer-spending-on-entertainment

### 2026-07-14: Bulgarian mothers rally for increased maternity benefits

Bulgarian mothers protested nationwide, demanding the second‑year child‑care allowance rise from €398 to about €480 and be indexed to the minimum wage, urging the government to adopt a comprehensive support‑for

4 sources. https://clstr.news/cluster/bulgarian-mothers-rally-for-increased-maternity-benefits

### 2026-07-14: Plamen Todorov nominated as sole candidate for Bulgaria's anti‑corruption commission

Bulgaria's parliament heard Plamen Todorov, the sole nominee for the restored anti‑corruption commission, after his nomination by Progressive Bulgaria; the commission oversees asset declarations, investigations

2 sources. https://clstr.news/cluster/plamen-todorov-nominated-as-sole-candidate-for-bulgarias-anticorruption-commission

### 2026-07-13: Karolov Hospital in Bulgaria reports higher staff salaries and millions in NHIF revenue

Karolov’s Dr Kiro Popov hospital posts above‑average salaries for doctors and nurses and records 8.47 million lev in revenue, 6.73 million lev from NHIF, in 2025.

2 sources. https://clstr.news/cluster/karolov-hospital-in-bulgaria-reports-higher-staff-salaries-and-millions-in-nhif-revenue

### 2026-07-13: Bulgaria's Ministry of Interior pension age under scrutiny

Bulgaria's Fiscal Council urges raising the pension age for Ministry of Interior staff, citing thousands working past retirement and receiving both salary and pension, with budget impacts of over €2 bn for the

4 sources. https://clstr.news/cluster/bulgarias-ministry-of-interior-pension-age-under-scrutiny

### 2026-07-13: Bulgaria's State Audit Office Sends Former NDK Director to Anti‑Corruption Probe

Bulgaria's State Audit Office referred former NDK director Andriana Tatarova and three other officials to the anti‑corruption commission over a conflict of interest involving a hall‑rental contract with her son

2 sources. https://clstr.news/cluster/bulgarias-state-audit-office-sends-former-ndk-director-to-anticorruption-probe

### 2026-07-13: Bulgaria under EU deficit procedure while gender‑pay reporting remains delayed

Bulgaria entered an EU excessive deficit procedure over structural fiscal gaps, while delayed gender‑pay transparency rules mean women could lose about €672 each year.

2 sources. https://clstr.news/cluster/bulgaria-under-eu-deficit-procedure-while-genderpay-reporting-remains-delayed

### 2026-07-12: Boyko Borisov urges Bulgarian cabinet to shrink budget deficit to 3%

Boyko Borisov says GERB will back a new Bulgarian budget with a max 3% deficit, criticises current overspending, flags EU deficit risk, proposes joint venture for Belene nuclear plant, and calls for a united右‑w

2 sources. https://clstr.news/cluster/boyko-borisov-urges-bulgarian-cabinet-to-shrink-budget-deficit-to-3

### 2026-07-12: Boyko Borisov: Bulgarian govt mimics work on Belene nuclear plant

Boyko Borisov says Bulgaria’s government is inconsistent on the Belene nuclear restart, urges a Ukrainian joint‑venture, decries budget deficits and calls for a united right‑wing presidential candidate.

4 sources. https://clstr.news/cluster/boyko-borisov-bulgarian-govt-mimics-work-on-belene-nuclear-plant

### 2026-07-12: Bulgarian household wealth jumps 25% between 2020 and 2025

UBS reports Bulgarian adult wealth rose over 25% from 2020‑2025, hitting €555 bn in household net worth, though wealth gains remain unevenly distributed.

2 sources. https://clstr.news/cluster/bulgarian-household-wealth-jumps-25-between-2020-and-2025

### 2026-07-12: Bulgarian MP Kalin Stoianov accuses Interior Minister Ivan Demerdzhiev of PNR misuse

Bulgarian DPS MP Kalin Stoianov filed a complaint accusing Interior Minister Ivan Demerdzhiev of misusing the PNR system to gather false travel data on Delian Peevski and to pressure prosecutors.

5 sources. https://clstr.news/cluster/bulgarian-mp-kalin-stoianov-accuses-interior-minister-ivan-demerdzhiev-of-pnr-misuse

### 2026-07-11: Delian Peevski flight records disputed as businessman Lyubomir Petrov denies travel

A police flight report links DPS leader Delian Peevski to trips with businessman Lyubomir Petrov, who denies any travel together and threatens legal action; other figures also dispute the data.

6 sources. https://clstr.news/cluster/delian-peevski-flight-records-disputed-as-businessman-lyubomir-petrov-denies-travel

### 2026-07-11: Bulgaria proposes new tuition fee formula to cap university fee hikes

Bulgaria's education ministry proposes a new tuition fee system that lowers the minimum threshold and caps fee increases at 20 % over four years, with public consultation ending 15 July.

2 sources. https://clstr.news/cluster/bulgaria-proposes-new-tuition-fee-formula-to-cap-university-fee-hikes

### 2026-07-10: Delian Peevski’s travel allegations spark parliamentary scrutiny

Bulgarian MPs call for a probe into Delian Peevski’s alleged flights, questioning illegal data‑system use, undisclosed funding and possible influence‑peddling.

5 sources. https://clstr.news/cluster/bulgarian-interior-minister-demerzhiev-accused-of-false-travel-claims

### 2026-07-10: Delian Peevski's private flights with judge Desislava Atanasova trigger resignation demand

MP Anton Kutev showed a GDOBP report that Delian Peevski flew on private jets with constitutional judge Desislava Atanasova to Dubai, prompting calls for her resignation and allegations of undeclared travel.

4 sources. https://clstr.news/cluster/delian-peevski-travel-report-shows-flights-with-constitutional-judge-desislava-atanasova

### 2026-07-10: Bulgaria placed under EU excessive‑deficit procedure

EU council opens an excessive‑deficit procedure on Bulgaria, citing a 4.1 % projected deficit for 2026. The country must present a corrective plan by 15 Oct 2026 and reduce the deficit below 3 % by 2029, or it

7 sources. https://clstr.news/cluster/bulgaria-faces-eu-deficit-procedure-as-interior-minister-investigated-over-flight-data

### 2026-07-10: Bulgaria approves 2026 health and social insurance budgets amid deficit concerns

Bulgaria's parliament approved the 2026 health and social insurance budgets, with the NHIF budget passing 131‑58‑1; it projects €5.256 bn revenue and higher spending, while the overall state budget faces a 5.7

6 sources. https://clstr.news/cluster/bulgarias-2026-budget-shows-record-deficit-as-health-fund-bill-passes-first-reading

### 2026-07-09: EU launches deficit procedure against Bulgaria over 2026 budget gap

EU opened a deficit procedure against Bulgaria; Canada unemployment fell to 6.5%; Mexico industry output slipped; Brazil inflation eased; US jobless claims dropped; ECB ready to tighten further.

2 sources. https://clstr.news/cluster/eu-launches-deficit-procedure-against-bulgaria-over-2026-budget-gap

### 2026-07-09: Bulgaria's Rheinmetall ammunition plant faces political dispute

Bulgaria's opposition says the government risks a €1 bn Rheinmetall ammunition plant, a strategic defence project with €260 m and €407 m budget allocations, amid funding disputes and fears it may move to a邻国.

5 sources. https://clstr.news/cluster/bulgaria-pushes-to-secure-1-billion-rheinmetall-munitions-plant-amid-political-dispute

### 2026-07-09: Bulgaria adopts 2026 budget amid EU deficit concerns

Bulgaria's 2026 budget, deemed realistic yet constrained, faces EU deficit scrutiny and criticism over past fiscal misrepresentations, prompting calls for ministry reforms.

2 sources. https://clstr.news/cluster/bulgaria-adopts-2026-budget-amid-eu-deficit-concerns

### 2026-07-09: Bulgaria moves to adopt banking law overhaul amid Eurozone push

Bulgaria's parliament approved sweeping reforms to the banking law to meet EU standards ahead of Eurozone entry, tightening supervision, board term limits and sanction powers, while also reviewing the Stryker ‑

2 sources. https://clstr.news/cluster/bulgaria-moves-to-adopt-banking-law-overhaul-amid-eurozone-push

### 2026-07-08: Bulgarian Interior Minister Ivan Demerdzhiev faces scrutiny over Peevski flight data and personal assets

Bulgarian interior minister Ivan Demerdzhiev provided a GDBOP report on Delian Peevski’s travel that opposition says contradicts his earlier statements, while his own 15‑property holdings are under scrutiny.

6 sources. https://clstr.news/cluster/bulgarias-interior-minister-demerdzhiev-faces-scrutiny-over-peevski-flight-probe

### 2026-07-08: Diagnosis Bulgaria platform uncovers 500% surge in hospital supply costs

The Diagnosis Bulgaria platform shows Bulgarian hospitals spending up to 500% more on consumables and over ten times more on identical drugs, prompting calls for audits.

4 sources. https://clstr.news/cluster/diagnosis-bulgaria-platform-uncovers-500-surge-in-hospital-supply-costs

### 2026-07-08: Bulgarian President Rumen Radev says Ukraine aid exhausted at NATO summit in Ankara

At the NATO summit in Ankara, Bulgarian President Rumen Radev said Bulgaria has exhausted its military aid for Ukraine, pledged continued support within limits, and called for EU action on defence spending and

2 sources. https://clstr.news/cluster/bulgarian-president-rumen-radev-says-ukraine-aid-exhausted-at-nato-summit-in-ankara

### 2026-07-07: Kamelia Neykova appointed chief secretary of Bulgaria's Council of Ministers

Kamelia Neykova, former CEC chair and ex‑deputy defence minister, is now chief secretary of Bulgaria's Council of Ministers, overseeing cabinet coordination.

5 sources. https://clstr.news/cluster/camellia-neykova-appointed-chief-secretary-of-bulgarias-council-of-ministers

### 2026-07-07: Bulgaria records over €13 million in online local tax payments in first half of 2026

Bulgaria's online payments for local taxes and fees topped €13 million in H1 2026, with 70% from Sofia, Plovdiv, Varna and Burgas; police fines added over €6 million.

3 sources. https://clstr.news/cluster/bulgaria-records-over-13-million-in-online-local-tax-payments-in-first-half-of-2026

### 2026-07-07: Bulgaria's Interior Ministry faces staffing crisis as over 7,000 employees receive pension and salary

Around 7,000 of Bulgaria's 51,000 interior ministry staff—over 14%—draw both salary and pension, while many more face fitness shortfalls and vacancies, prompting concerns over efficiency and a 600‑700 million л

3 sources. https://clstr.news/cluster/bulgarias-interior-ministry-faces-staffing-crisis-as-over-7000-employees-receive-pension-and-salary

### 2026-07-07: Bulgarian parliament defence committee to review 2026 budget

Bulgaria's defence committee reviews a €2.57 bn budget, targeting 2.15 % of GDP, with personnel and capital spending increases and a 2026 military salary freeze.

2 sources. https://clstr.news/cluster/bulgarian-parliament-defence-committee-to-review-2026-budget

### 2026-07-07: Bulgaria's 2026 Social, Health and Education Budgets Approved by Parliament

Bulgaria's parliament approved 2026 budgets for pensions, health and education, raising pensions and contributions, allocating €5.2 bn to health, €5.6 bn to education, and projecting a 5.7% deficit.

15 sources. https://clstr.news/cluster/bulgaria-adopts-2026-state-budget-and-social-insurance-bills-in-parliament

### 2026-07-07: Bulgaria raises pensions 7.8% as updated payments begin in July 2026

Bulgaria begins paying 7.8% higher pensions on July 7 2026, removes the €30.68 COVID add‑on, and allocates €13.5 bn for pensions in the 2026 budget.

2 sources. https://clstr.news/cluster/bulgaria-raises-pensions-78-as-updated-payments-begin-in-july-2026

### 2026-07-06: Asen Medzhiev launches comprehensive audit of Bulgaria's National Health Insurance Fund

Interim head Asen Medzhiev ordered a wide‑range audit of Bulgaria’s National Health Insurance Fund for June 2023‑June 2026, reviewing procurement, pharmaceuticals, medical devices and minors’ treatment author‑

3 sources. https://clstr.news/cluster/asen-medzhiev-launches-comprehensive-audit-of-bulgarias-national-health-insurance-fund

### 2026-07-05: Bulgaria's National Children's Hospital faces funding shortfall

Bulgaria’s 2026–2028 budget omits funding for the €400 million National Children’s Hospital, stalling construction and sparking health‑policy concerns.

2 sources. https://clstr.news/cluster/bulgarias-national-childrens-hospital-faces-funding-shortfall

### 2026-07-04: Bulgaria raises pensions by 7.8% and expands social pension benefits from July 1

From July 1, Bulgaria lifts labor pensions by 7.8% and raises the old‑age social pension by €183, adds two allowances and ends the Covid supplement, affecting roughly 163,000 people.

3 sources. https://clstr.news/cluster/bulgaria-raises-pensions-by-78-and-expands-social-pension-benefits-from-july-1

### 2026-07-04: Bulgarian National Bank projects income growth to outpace inflation

Bulgaria’s central bank says income growth will keep outpacing inflation, cites limited euro impact and a strong deposit base.

2 sources. https://clstr.news/cluster/bulgarian-national-bank-projects-income-growth-to-outpace-inflation

### 2026-07-04: Bulgaria's tax authority reports 100 violations in summer coastal inspections

Bulgaria's NRA inspected 330 Black Sea businesses, found ~100 violations—mainly missing receipts and cash mismatches—sealed two outlets lacking registers, issued fines up to €5,000, and continues price checks‑e

3 sources. https://clstr.news/cluster/bulgarias-tax-authority-reports-100-violations-in-summer-coastal-inspections

### 2026-07-04: Bulgarian National Bank says internal factors, not euro, drive inflation

Bulgaria's central bank says rising incomes and private consumption, not euro adoption, are the main inflation drivers, with euro‑conversion impact minimal.

2 sources. https://clstr.news/cluster/bulgarian-national-bank-says-internal-factors-not-euro-drive-inflation

### 2026-07-03: Bulgaria's municipal investment program faces funding shortfall as mayor and finance minister demand budget revisions

Bulgaria's mayor and finance minister warn that most of a €3.4 bn municipal investment programme remains unpaid and call for extra state funding for infrastructure, schools and transport.

3 sources. https://clstr.news/cluster/bulgarias-municipal-investment-program-faces-funding-shortfall-as-mayor-and-finance-minister-demand-

### 2026-07-02: Bulgaria's interior minister Ivan Demerdzhiev faces accusations amid culture minister's NDK board purge

Interior Minister Ivan Demerdzhiev faces a criminal probe over a disputed ID‑card contract, while Culture Minister Evgeni Miloshev ousted the NDK board after exposing massive salary overspending and a €49 m hit

2 sources. https://clstr.news/cluster/bulgarias-interior-minister-ivan-demerdzhiev-faces-accusations-amid-culture-ministers-ndk-board-purg

### 2026-07-02: Bulgaria faces pension crisis as retirees work and system shows funding gaps

Bulgaria’s pension system is strained: contributions cover only half of payouts, the grey economy drains funds, and disability pensions rise. Over half of retirees work due to low pensions, far above the EU avg

3 sources. https://clstr.news/cluster/bulgaria-faces-pension-crisis-as-retirees-work-and-system-shows-funding-gaps

### 2026-07-02: Bulgaria faces €1.5 bn pension fund drain and budget deficit concerns

Bulgaria's opposition warns that €1.5 bn lost to private pension funds worsens the state budget, while a projected 5.7 % deficit for 2026 is deemed unrealistic and delayed reforms could spark strikes.

2 sources. https://clstr.news/cluster/bulgaria-faces-15-bn-pension-fund-drain-and-budget-deficit-concerns

### 2026-07-02: Bulgaria Tightens Pension Oversight and Disability Pension Controls

Bulgaria orders a pension audit for 2020‑2026 and proposes stricter disability‑pension checks, part of a 2026 budget allocating €13.5 bn to pensions.

3 sources. https://clstr.news/cluster/bulgaria-tightens-pension-oversight-and-disability-pension-controls

### 2026-07-02: Bulgaria MP Kalin Stoyanov accuses colleagues of leaking classified data

Bulgarian DPS MP Kalin Stoyanov accused fellow deputy Ivo Mirchev of leaking classified info and later condemned Interior Minister Ivan Demerdzhiev for a parliamentary “show” over allegations about DPS leader D

3 sources. https://clstr.news/cluster/bulgaria-mp-kalin-stoyanov-accuses-colleagues-of-leaking-classified-data

### 2026-07-01: Bulgaria to expand toll cameras to photograph heavy trucks in overtaking lane

Bulgaria’s toll agency will add cameras that photograph heavy trucks in the overtaking lane from July 2026, initially on 15 highway sections, to boost road safety.

2 sources. https://clstr.news/cluster/bulgaria-to-expand-toll-cameras-to-photograph-heavy-trucks-in-overtaking-lane

### 2026-07-01: Bulgarian Parliament Rejects Proposal to Raise Maternity Pay to 100%

Bulgaria's parliament rejected a bill to boost maternity compensation from 50% to 100%; the government plans a 75% increase in the 2027 budget.

2 sources. https://clstr.news/cluster/bulgarian-parliament-rejects-proposal-to-raise-maternity-pay-to-100

### 2026-07-01: Bulgaria's National Health Insurance Fund budget reaches €5.2 bn in 2026

Bulgaria's National Health Insurance Fund will manage a €5.2 bn budget for 2026, an 8.5% rise, amid criticism that unchecked spending and lack of price transparency hinder health system improvements.

2 sources. https://clstr.news/cluster/bulgarias-national-health-insurance-fund-budget-reaches-52-bn-in-2026

### 2026-06-30: Bulgaria raises 2026 pensions by 7.8% and ends COVID supplement

Bulgaria will lift 2026 pensions by 7.8% under a “Swiss rule”, end the €30.68 COVID supplement, and raise the minimum pension to €347.51.

2 sources. https://clstr.news/cluster/bulgaria-raises-2026-pensions-by-78-and-ends-covid-supplement

### 2026-06-30: Bulgaria's Interior Minister Ivan Demerjiev faces GER‑B accusations over road‑safety contracts and DPS travel probe

Bulgaria's interior minister Ivan Demerjiev is sued by GERB over alleged road‑safety contract irregularities and faces criticism for a DPS travel probe, with parliamentarians demanding investigations into past‑

5 sources. https://clstr.news/cluster/bulgarian-interior-minister-ivan-demerdzhiev-faces-potential-prosecution-over-road-mantle-contracts

### 2026-06-30: President Iliana Yotova nominates Pavel Gaydarov to Bulgaria's anti‑corruption commission

Bulgarian President Iliana Yotova nominated investigator Pavel Gaydarov to the anti‑corruption commission, opening a 7‑day comment period under the anti‑corruption law.

2 sources. https://clstr.news/cluster/president-iliana-yotova-nominates-pavel-gaydarov-to-bulgarias-anticorruption-commission

### 2026-06-30: Bulgaria's 2026‑2027 budget faces sharp criticism over deficit and spending

Bulgarian officials warn the 2026‑27 budget risks high deficits, rising debt and calls for stronger reforms and realistic forecasts.

7 sources. https://clstr.news/cluster/bulgarias-betting-sector-booms-as-central-bank-flags-budget-deficit-concerns

### 2026-06-30: Bulgarian Minister Shishkov flags 200 mln lev overpayment on national road‑barrier contracts

Minister Ivan Shishkov reports a 200 million lev overpayment on Bulgarian road‑barrier contracts, adds 16 million lev indexation, and warns of procurement issues and rising vignette fees.

3 sources. https://clstr.news/cluster/bulgarian-minister-shishkov-flags-200-mln-lev-overpayment-on-national-roadbarrier-contracts

### 2026-06-30: Bulgaria and Romania overhaul utility tariffs on 1 July 2026

From 1 July 2026 Bulgaria raises gas, electricity and heating tariffs while Romania cuts gas‑distribution fees; both countries also introduce broader consumer‑price and regulatory reforms.

8 sources. https://clstr.news/cluster/bulgarias-regulator-sets-july-gas-price-at-3770-per-mwh

### 2026-06-30: Bulgaria's GERB party to sue Interior Minister Demerzhiev over defamation

GERB will sue Interior Minister Ivan Demerzhiev for defamation after he alleged former PM Boyko Borisov is linked to guard‑rail firms supplying highways in Bulgaria.

2 sources. https://clstr.news/cluster/bulgarias-gerb-party-to-sue-interior-minister-demerzhiev-over-defamation

### 2026-06-30: Bulgaria Raises Pensions by 7.8% Starting 7 July 2026

Bulgaria’s pension system will see a 7.8 % increase on 1 July 2026, with payouts via post offices from 7‑20 July and bank transfers on 7 July; related allowances and unemployment benefits are also scheduled for

3 sources. https://clstr.news/cluster/bulgaria-raises-pensions-by-78-starting-7-july-2026

### 2026-06-30: Delian Peevski defends private flights and seeks full NSO security spending report

Delian Peevski defends his private flights after ministerial scrutiny and demands a full disclosure of NSO security spending for all protected officials since 2013.

2 sources. https://clstr.news/cluster/delian-peevski-defends-private-flights-and-seeks-full-nso-security-spending-report

### 2026-06-30: Bulgarian Interior Minister Ivan Demerdjiev Faces Corruption Allegations

Bulgarian interior minister Ivan Demerdjiev is accused of corruption ties to businessman Nikolay Filipov and a suspect 81 million‑lev contract, while he blames former PM Boyko Borisov for overpriced road‑safety

2 sources. https://clstr.news/cluster/bulgarian-interior-minister-ivan-demerdjiev-faces-corruption-allegations

### 2026-06-30: Bulgaria's business confidence falls as uncertainty and labour shortages loom

Bulgaria's business climate index fell to 16.1 in June, highlighting rising uncertainty, labour shortages and cautious outlooks in industry and construction, while retail stays modestly positive.

3 sources. https://clstr.news/cluster/bulgarias-business-confidence-falls-as-uncertainty-and-labour-shortages-loom

### 2026-06-29: Bulgaria's 2026 Health Insurance Budget Meets Employer Pushback

Bulgaria's 2026 NHIF budget, a €5.256 bn increase, faces employer criticism over spending guarantees, while KRIБ sets six reform conditions for its support.

3 sources. https://clstr.news/cluster/bulgarias-2026-health-insurance-budget-meets-employer-pushback

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Cite as: Bulgaria budget and fiscal crisis 2026–27. CLSTR, https://clstr.news/situations/bulgarias-new-government-tackles-budget-shortfalls-judicial-overhaul-and-sectorwide-reforms
