Former Finance Minister Asen Vassilev said Bulgaria’s current fiscal situation was predictable, arguing that warnings about breaching the deficit threshold were ignored during the 2025 budget process.
He stated that concerns raised during the budget’s adoption were dismissed by the governing majority. “Back when the 2025 budget was being adopted, we warned that this deficit would not be met and would create problems,” Vassilev said, linking the current situation to what he described as imprudent fiscal management by the authorities in charge.
His comments came after the announcement that the European Commission is expected to launch an excessive deficit procedure against Bulgaria on June 3. Vassilev argued that the issue is not irreversible, insisting that the solution lies in fiscal discipline rather than increased borrowing.
Further reading: EU to Launch Excessive Deficit Procedure Against Bulgaria, Sanctions Possible
He said the 2026 budget should be designed within the 3% deficit limit, warning that otherwise Bulgaria would face continued monitoring. “The way out is for the 2026 budget to be adopted under realistic parameters with a 3% deficit,” he said, adding that overinflated spending, particularly wage increases in the public sector, had contributed to the imbalance.
