European Commission Proposes Opening of Excessive Deficit Procedure for Bulgaria

The European Commission is expected to propose today the opening of an Excessive Deficit Procedure (EDP) against Bulgaria after data from Brussels showed that the country's budget deficit reached 3.5% of GDP in 2025 and is projected to rise to 4.1% this year and 4.3% in 2027.

According to a senior European Commission official, Bulgaria’s excessive deficit is not linked to its adoption of the euro, but rather to the political instability of recent years and the frequent turnover of caretaker governments.

What Happens Next?
The next stage of the process lies with the Economic and Financial Committee, the European Union’s advisory body, which assists the Council of the European Union and the European Commission by providing analyses and opinions on the economic and financial situation of member states.

The committee has two weeks to issue its opinion on whether it supports the Commission’s recommendation to open an Excessive Deficit Procedure. The Commission will then propose that the Council formally establish the existence of an excessive deficit and adopt a net expenditure path designed to bring it back under control.

Bulgaria is the only EU member state for which such a procedure is expected to be proposed today. Several other countries remain under fiscal monitoring, but no recommendation has yet been made to launch an Excessive Deficit Procedure against them.

Speaking on the matter, Valdis Dombrovskis, European Commissioner for Economy and Productivity, said:

“For Bulgaria, the budget deficit last year did not exceed 3% of GDP when additional defence expenditure under the national escape clause was taken into account. However, from this year onwards, the excess above 3% of GDP can no longer be explained by additional defence spending.

Consequently, the report concludes that the deficit criterion has not been met.

The next step is for the Economic and Financial Committee to formulate an opinion on this assessment. The Commission will then propose the opening of an Excessive Deficit Procedure for Bulgaria.

The Commission will continue to monitor fiscal developments closely over the coming months.”