Bulgaria: EU Council opens excessive deficit procedure

Brussels – It’s now official: Bulgaria is subject to the excessive deficit procedure. The Ecofin council has adopted the Commission’s request to open a forced course of action to correct imbalances, with the recommendation to bring the deficit-to-GDP ratio below the 3 per cent threshold by 2029. The decision by the Ministers for Economy and Finance to initiate the procedure against Bulgaria is due to the deficit exceeding the 3 per cent threshold in 2026 (-4.1 per cent) and in 2027 (-4.3 per cent). “Bulgaria’s use of the national escape clause for defence spending under the Stability and Growth Pact does not fully explain the excess above the 3% threshold,” the Council said, which is obliging the country to undertake a rapid correction of its public finances.