PM Rosen Zhelyazkov: We Will Increase Defence Spending

Prime Minister, Rosen Zhelyazkov, and European Council President, António Costa, visited the Arsenal military plant in Kazanlak (a leading Bulgarian manufacturer of firearms and ammunition) as part of efforts to demonstrate the potential of the Bulgarian defence industry.

After the visit, the two spoke to journalists in Stara Zagora on April 28.

“Our meetings with European Council President António Costa continue,” said Prime Minister Rosen Zhelyazkov.

“We have always emphasised the importance of the EU’s strategic objectives, which currently focus on two key areas: Europe’s security and the EU’s competitiveness. These are, of course, prerequisites in the global race and digital transformation,” Zhelyazkov stated.

The Prime Minister announced that on the following day, he and Costa would visit the Institute for Computer Science, Artificial Intelligence, and Technology. “The message is clear,” he said.

“Bulgaria is not just an active participant in these processes—it is a driving force. The government is very clearly a supportive articulator of the Union’s position on modernising defence capabilities. And we have stated this as clear support within the EU. We have consistently expressed support for enhancing the capacity of our defence industry.”

To meet these challenges, several key decisions lie ahead for Bulgaria, the Prime Minister noted.

“This year, defence spending is over 2% of the GDP, and the Government's intention is to increase this spending, by taking advantage of the opportunity to activate the clause for excluding the rearmament projects that are implemented under the European Union's initiatives for joint acquisition from the State Budget deficit,” the Prime Minister said.

He added that a decision to this effect would be adopted at the upcoming Council of Ministers meeting. “We will submit a request to the European Commission to approve a national derogation clause. Once granted, we will be able to invest more in defence, provided it does not threaten fiscal sustainability in the medium term.”

The size of the investment may reach up to 1.5% of GDP annually, “with the reference year being the one prior to the war in Ukraine.”

In addition to the derogation clause, Bulgaria is steadily progressing with its defence investment programme through 2032, Zhelyazkov added. The Prime Minister announced the government's ambition to launch a tender by the end of this year for testing three types of drones for the Bulgarian army.

We are ready to apply for funding, he added.

António Costa thanked for the hospitality.

“I had very constructive discussions with Prime Minister Zhelyazkov. In these uncertain times, it is more important than ever to join forces, and that is why I found it necessary to visit not only the capital but also different regions of the country—to hear from citizens and local communities, so we can shape better policies and cooperation.”

Competitiveness and defence are top priorities for the EU, said Costa.

“Investing in defence not only ensures our security but also creates jobs, supports regional development, and promotes our overall progress.”

He pointed to 'Arsenal' as an example of how defence and competitiveness objectives can be successfully combined. “It is inspiring,” he said, “to see Bulgaria’s economy advancing.”

• Prime Minister Zhelyazkov and António Costa visited the Arsenal military plant

Their visit to the 'Arsenal' military plant was aimed at presenting the opportunities for development, modernisation and strengthening of Bulgaria's role in building European defence capabilities.

During the visit, the company’s leadership presented the plant’s technological capabilities, key production capacities, and the ongoing modernisation processes.

Particular emphasis was placed on efforts to expand the capacity of the defense industry as a vital part of Europe’s ability to defend its values and strengthen its strategic autonomy.