EU Council initiates procedure against Bulgaria due to high budget deficit
The Council of the European Union has officially approved placing Bulgaria under an excessive deficit procedure. This decision comes following an analysis of the country's economic indicators, which show that government spending exceeds revenue beyond permissible European standards.
According to EU rules, the government budget deficit must not exceed 3% of the gross domestic product (GDP). However, expert forecasts indicate that Bulgaria's deficit is expected to reach 4.1% of GDP in 2026. There are concerns that this figure will remain above the critical threshold in the coming years if measures are not taken.
The excessive deficit procedure is a mechanism through which the European Commission monitors the financial discipline of member states. It obliges the government to present a plan to curb spending and improve budgetary stability. The goal is to avoid risks to the country's long-term economic sustainability.
Although this news is drawing attention, it does not mean immediate sanctions for the country. Bulgaria will need to work in close cooperation with European institutions to bring its deficit back below the 3% threshold. It is expected that the Ministry of Finance will propose concrete steps to address the budgetary imbalance in the coming months.