The Council of the European Union has formally confirmed the European Commission’s decision from early June to place Bulgaria under an excessive deficit procedure, urging the country to take corrective fiscal measures to curb rising public spending. The decision was published in the Official Journal of the EU, according to the Council’s statement.
As part of the procedure, the EU sets binding limits on Bulgaria’s net government expenditure growth, recommending it should not exceed 4.2 percent in 2026, 3.4 percent in 2027, 3.4 percent in 2028, and 3.2 percent in 2029. These parameters are intended to ensure that Bulgaria exits the excessive deficit situation by 2029.
The Council also established a timeline for compliance, requiring Bulgaria to take effective corrective action and submit relevant measures together with its draft budget plan for 2027 by October 15, 2026. This document must be presented to both the European Commission and the Eurogroup, BTA reports.
Progress reporting will be required twice a year. Bulgaria must provide updates every spring through its annual progress report by April 30, and every autumn through its draft budgetary plan by October 15, until the deficit is fully corrected.
