Public Funds: What Were the Outcomes of the Tripartite Council Meeting?

The draft budgets for the National Health Insurance Fund (NHIF), the State Social Security system and the state budget came under heavy scrutiny from trade unions and employers during a meeting of the National Council for Tripartite Cooperation (which includes representatives of the trade unions, employers and the government) with the proposals accompanied by numerous reservations, criticisms and recommendations.

What emerged from the discussions on June 29 was that neither the trade unions nor employers support the draft budgets. At the same time, both sides acknowledged that the budgets will remain in force for only five months—from August until the end of December.

The expectation is that the situation will be different in 2027.

The main criticism of both the NHIF and State Social Security budgets was the absence of meaningful reforms, despite the widespread view that both systems are in urgent need of structural change. The NHIF budget for this year amounts to €5.25 billion, nearly €412 million more than last year. As in previous years, the largest share of funding is allocated to hospital care, while relatively limited resources are earmarked for preventive healthcare.

The State Social Security budget is a record €15.2 billion, with €13.5 billion allocated to pensions. Pensions will increase by 7.8% from 1 July under the Swiss indexation rule, with the average pension expected to reach €543.

The state budget also sets record levels for both revenue and expenditure. Revenue is projected at nearly €50 billion, while expenditure is expected to reach €57 billion, resulting in a budget deficit equivalent to 5.7% of the country's gross domestic product.

Deputy Prime Minister and Finance Minister Galab Donev defended the government's budget proposals before the Tripartite Council.

"The careful stabilisation of public finances without resorting to shock measures is a necessary condition for the transition to the 2027 budget, which will incorporate our policy priorities. We have been criticised for a lack of sufficient ambition and boldness in the 2026 Budget. Expectations for this year's budget are varied and often unrealistic. We are listening to every opinion and carefully considering every proposal. I am fully aware of the demands raised by the protesting public sector employees. The issues they chose to raise during today's protest will be discussed further within the framework of social dialogue," Donev said.