Bulgaria’s Euro Transition: Opportunity for Growth Shadowed by Debt and Spending Concerns
Bulgaria is poised for a likely credit rating upgrade in the coming weeks, driven by its impending adoption of the euro
The management program of Prime Minister Rosen Zhelyazkov's government spans 100 pages and is expected to receive approval today from the coalition partners, including GERB, BSP, "There Is Such a People" (TISP), and DPS-Dogan. A primary focus of the program is budget consolidation, with significant investments planned for infrastructure, education, and healthcare. The government also aims to foster high-value economic growth by establishing innovation zones and modernizing the army, with an emphasis on collaboration with the Bulgarian arms industry.
The government’s strategy prioritizes financial stability, economic competitiveness, and adherence to principles of predictability and responsible management of public resources. It also plans to encourage investments and innovation. Bulgaria’s integration into the European economic and financial frameworks is highlighted as a key objective.
Efforts to reduce the bureaucratic burden will be made, alongside measures to stimulate entrepreneurship and economic activity. A specific goal is to improve Bulgaria’s position on the FATF “Grey List,” with a focus on enhancing interagency cooperation to combat money laundering and terrorism financing. This includes joint efforts to improve the prevention, detection, and investigation of financial crimes and a commitment to tackle corruption and organized crime.
Another major area of the program is the effective management of funds from the EU’s Cohesion Policy for the 2021-2027 period, as well as from donor programs. The government plans to renegotiate with the European Commission to expedite the National Recovery and Resilience Plan (NRRP) and ensure the completion of remaining reforms and investments.
The coalition partners are committed to enhancing the quality of life for Bulgarian citizens, ensuring access to modern healthcare, quality education, and a secure social environment. Specific measures will focus on reducing regional disparities, supporting families, and improving conditions for youth. There will also be initiatives to address domestic violence and promote equality and inclusion for marginalized groups.
Social policies will be aligned with economic realities to ensure sustainable income, access to services, and the efficient use of public funds. The program also emphasizes energy diversification, the development of nuclear energy, and green technology investments to ensure predictable and affordable energy prices for consumers. Measures to improve energy efficiency and reduce dependence on external suppliers are part of this strategy.
Defense Minister Atanas Zapryanov announced that Bulgaria plans to raise its defense budget to 5% of GDP
The proposals of “Spasi Sofia” to reorganize several public transport lines in the capital have passed through the municipal Transport Committee and are now set for a final vote in the City Council on Thursday.
President Rumen Radev has urged for caution amid the growing instability in the international arena, warning that Bulgaria must avoid being drawn into escalating global conflicts
Bulgarian Foreign Minister Georg Georgiev firmly rejected the idea that the European Parliament has any authority to speak on matters of national identity or language
Bulgaria’s entry into the eurozone is expected to bring clear economic advantages, but it also carries risks that go beyond the often-discussed topics in public discours
Defense Minister Atanas Zapryanov and Energy Minister Zhecho Stankov moved to reassure the public on Monday, stating firmly that Bulgaria faces no direct threat - military or energy-related - following the escalation of hostilities between Israel and Iran
Borderless Bulgaria: How Schengen Benefits Are Transforming Trade and Logistics
Bulgaria's Mortality Rate Remains Highest in Europe