PM Radev: The Excessive Deficit Procedure is an Assessment for the Previous Governments, which Maintained 3% Deficit with "Budget Juggling"

The excessive deficit procedure against Bulgaria has yet to begin, but it already represents a telling assessment of previous governments, which sought to maintain a deficit of 3% through various "budgetary manoeuvres", Prime Minister Rumen Radev told journalists in Montenegro.

"These included the systematic decapitalisation of state-owned companies, draining liquidity from businesses, delaying VAT refunds, and collecting taxes in advance that were due in future years but were transferred into the current year, as was the case with the bank tax. All this occurred alongside substantial spending, including on questionable public procurement contracts at inflated prices."

PM Radev expressed hope that the parties represented in Parliament would demonstrate maturity and a constructive approach so that, through joint efforts, Bulgaria's public finances could be restored to a healthier state.

The Prime Minister also explained the discrepancy between the figures used by Brussels and those of Bulgaria's Ministry of Finance regarding the state of the budget.

Rumen Radev, Prime Minister:
"There is a discrepancy in the data with Brussels because, over the past several years, payments have been deferred and carried over into the following year. These are the so-called hidden payments, which pump up the hidden deficit."

The invoices are for more than €2.2 billion, and those liabilities still have to be covered, the Prime Minister added.

Radev also said he had spoken with Serbian President, Aleksandar Vučić, regarding Bulgaria's request for the extradition of former Bulgarian Development Bank chief executive Stoyan Mavrodiev. He said he had received assurances that the Serbian authorities would treat Bulgaria's request with the utmost responsibility.

Prime Minister Rumen Radev is in Montenegro to attend the the EU-Western Balkans Summit.

The meeting is co-chaired by António Costa, President of the European Council. It will also be attended by Ursula von der Leyen, President of the European Commission, and Kaja Kallas, the EU's High Representative for Foreign Affairs and Security Policy.