The Council of the European Union has formally opened an excessive deficit procedure (EDP) against Bulgaria after concluding that the country's public finances are expected to breach the bloc's fiscal rules in the coming years. Alongside the decision, the Council adopted recommendations setting out a timetable and spending limits aimed at bringing Bulgaria's budget deficit back within the EU threshold by 2029.
The procedure is triggered under the EU's fiscal governance framework when a member state's government deficit exceeds, or is projected to exceed, 3% of gross domestic product. According to the Council, Bulgaria's deficit is forecast to reach 4.1% of GDP in 2026 and remain above the permitted ceiling in 2027.
The Council also noted that Bulgaria's use of the national escape clause for higher defense spending under the Stability and Growth Pact does not fully account for the projected breach of the fiscal limit.
Under the recommendations, Sofia must present effective corrective measures by October 15, 2026. The Council also set limits on cumulative nominal net expenditure growth, which should not exceed 4.2% in 2026, 7.7% in 2027, 11.4% in 2028, and 15% in 2029. The objective is to reduce the deficit below the EU's 3% reference value by the end of the period.
