EU Finance Ministers Voted to Open an Excessive Deficit Procedure Concerning Bulgaria

The finance ministers of the EU member states have just voted to open an excessive deficit procedure concerning Bulgaria.

They also adopted a recommendation for the country outlining the required net expenditure levels and the timetable to be followed in order to bring the excessive deficit to an end by 2029.

The excessive deficit procedure is designed to ensure that EU member states maintain discipline in their government budgets. Procedures are launched when a member state’s public deficit exceeds the reference threshold of 3% of gross domestic product (GDP).

The Council’s decision to open the procedure today is based on Bulgaria’s projected public deficit of 4.1% of GDP in 2026, which is expected to remain above 3% of GDP in 2027. Bulgaria’s use of the national escape clause for defence expenditure under the Stability and Growth Pact does does not fully explain the excess above the 3% threshold.

In its recommendation, the Council states that Bulgaria should take effective action and present by October 15, 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, 11.4% in 2028, and 15% in 2029.

Valdis Dombrovskis, European Commissioner for Economy:

“The Council has decided that Bulgaria is experiencing an excessive deficit and has made recommendations for adjustments in the coming years so that it can fall below the 3% of GDP threshold by 2029. The Commission will support Bulgaria’s efforts to follow the recommendations in order to achieve our common goal – the closure of the excessive deficit procedure.”