Council of the Europen Union opens excessive deficit procedure for Bulgaria

The Council of the European Union has opened an excessive deficit procedure concerning Bulgaria. It also adopted a recommendation to the country outlining the net expenditure path and timeline that should be followed to put an end to its excessive deficit by 2029. The procedure is launched when an EU member state has a government deficit exceeding a reference value of 3% of GDP.

The Council’s decision to open an EDP today is due to Bulgaria’s projected 2026 government deficit of 4.1% of GDP, which is expected to continue exceeding 3% of GDP in 2027. Bulgaria’s use of the national escape clause for defence spending under the stability and growth pact does not fully explain the excess above the 3% threshold, the statement reads.

In its recommendation, the Council stipulates that Bulgaria should therefore take effective action and present by 15 October 2026 the necessary measures to reduce its deficit. Bulgaria should also ensure that its nominal cumulative net expenditure growth rate does not exceed 4.2% in 2026, 7.7% in 2027 and 11.4% in 2028 and 15% in 2029.