Bulgaria is unlikely to be subject to an excessive deficit procedure for 2014, despite latest statistical data showing its budget deficit for that year was twice the maximum value prescribed by the EU.

Earlier this week, EU statistical body Eurostat put the 2014 deficit of Bulgaria at 5.8% of GDP - much beyond the 3% limit allowed under EU rules. Earlier in 2015, the Bulgarian government had estimated it at 2.8% of gross domestic output.

Statistics place Bulgaria in a group with 13 other nations (Cyprus, Portugal, Spain, the UK, Croatia, Slovenia, Ireland, France, Greece, Poland, Finland, Belgium, and Italy) which exceeded the deficit threshold in 2014.

Bulgaria in particular was hit by the crisis at collapsed Corporate Commercial Bank (KTB), which was once Bulgaria's largest lender before being placed under special supervision following a bank run. Depositors had to be reimbursed using money from the Bank Deposit Insurance Fund (BDIF).

Sofia then said BDIF funds were not considered to be part of state governance, something Eurostat disagrees about.

In Goranov's words, it is the disagreement over whether to include BDIF in the final figure that caused a 3.0% margin in the government and Eurostat's respective statistics.

On Thursday he asserted that Bulgaria's commitment to fiscal stability was already yielding its fruits and the EU Commission would take that into account. 
 

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