Parliament Approves at Second Reading the Increase in the Debt Ceiling By Up To €3.8 Billion

Until the adoption of the State Budget Act for 2026, the Council of Ministers may also incur state debt of up to €3.8 billion to finance the budget deficit, including pre-financing under the Republic of Bulgaria’s Recovery and Resilience Plan, Parliament decided through the second-reading adoption of amendments to the so-called 'extended budget' for 2026.

The provision was supported by 136 Members of Parliament — Progressive Bulgaria (122) and Movement for Rights and Freedoms -MRF (15). Voting against were 44 MPs from Democratic Bulgaria, We Continue the Change, Vazrazhdane, and one MP from Progressive Bulgaria. Seventeen MPs from GERB–SDS abstained.

For the purposes of cash-flow management and payments by budgetary organisations, state debt of up to €3.8 billion may be incurred, to be repaid by the end of the current fiscal year.

The Council of Ministers may also conduct negotiations and conclude a loan agreement with the European Commission in the amount of €3,261,700,000 to obtain financial support in the form of a loan under the Security Action for Europe (SAFE) Instrument through the strengthening of the European defence industrial base, subject to subsequent ratification.