The EU has initiated excessive deficit procedure against Bulgaria

The Council of the European Union triggered on Friday the excessive deficit procedure (EDP) against Bulgaria, following the recommendation of the European Commission from June. The objective of the EDP is to ensure sound fiscal policies in member states and the stability of the euro area.

Bulgaria's deficit is estimated at 4.1% of GDP, exceeding the 3% limit imposed by the EU, and forecasts suggest that this situation could continue into 2027. Although Bulgaria benefits from a derogation for defense spending, the Council emphasized that this does not fully justify exceeding the threshold. Prime Minister Rumen Radev stated that he inherited a precarious financial situation, and the state is operating based on the previous budget due to the government crisis.

Additionally, EU rules stipulate that public debt must not exceed 60% of GDP. Other countries under excessive deficit procedures include Austria, Belgium, France, and Romania.