Parliament has given final approval at second reading to legislation allowing the government to raise Bulgaria’s borrowing ceiling by up to EUR 3.8 billion ahead of the adoption of the 2026 state budget, expanding the executive’s fiscal room for deficit financing and other obligations.
The measure permits the Council of Ministers to contract new state debt of up to EUR 3.8 billion until the 2026 budget law is passed. The funds are intended to cover the expected budget deficit, as well as advance financing linked to Bulgaria’s National Recovery and Resilience Plan. Lawmakers also allowed the same borrowing ceiling to be used for cash-flow management and payments by budget-financed institutions, with repayment required by the end of the current fiscal year.
The proposal passed with 136 votes in favor, including MPs from Progressive Bulgaria (122) and the Movement for Rights and Freedoms-DPS (15). Opposition came from 44 MPs representing Democratic Bulgaria, We Continue the Change-PP, Revival, and one member of Progressive Bulgaria. Seventeen MPs from GERB abstained from the vote.
In parallel, Parliament authorized the government to open negotiations and conclude, subject to ratification, a loan agreement with the European Commission worth EUR 3.2617 billion under the Security Action for Europe (SAFE) instrument. The financing is intended to support Europe’s defense industrial base through coordinated EU-level lending mechanisms.
