Bulgaria’s Employment Strategy Struggles to Shift Focus from Temporary Subsidies to Long-Term Skills
Bulgaria’s Ministry of Labor and Social Policy released its National Employment Action Plan (NAP) for 2025 in early May,
Prime Minister Rosen Zhelyazkov, accompanied by his three deputy prime ministers, delivered a comprehensive progress report on the implementation of the government’s policy agenda. In a media statement, Zhelyazkov emphasized that the government’s program was adopted in record time—just 38 days after the cabinet took office—and outlined the main goals and achievements to date.
“The program, adopted on February 24, is designed with a full four-year mandate in mind. It includes 100 priorities, 257 specific objectives, and 710 concrete measures—each with performance indicators. Our overarching aim is to improve the quality of life, ensure a transparent and efficient judicial system, achieve eurozone membership, and drive sustainable economic growth,” the Prime Minister stated.
Zhelyazkov highlighted that the national budget was passed swiftly, aligned with the goal of maintaining a deficit below 3%—a critical requirement for eurozone accession. He noted efforts to curb the shadow economy, with tax revenue collection improved by BGN 1.1 billion, and projected additional revenues of around BGN 1 billion through tighter fiscal controls.
Border security has also been enhanced. The government has procured 34 drones for surveillance along the Turkish border. The Ministry of the Interior has launched integrity tests in response to corruption reports, and over 2,000 operations have been conducted. More than 300 unmarked vehicles will be added to support law enforcement.
In terms of civil protection, all regional governors have now been trained to use the BG-Alert emergency system, with training for mayors to follow. A cybersecurity council will be created, and an internal electronic document management system will be implemented by June.
Deputy Prime Minister Tomislav Donchev announced that tenders will be launched by mid-year for the local production of three types of drones for the Ministry of Defense. He stressed the government’s focus on restoring public trust after years of political instability.
The education system will see investment in STEM and AI development. AI labs will be established in 100 educational institutions, while efforts continue to explore Black Sea oil and gas reserves.
In the energy sector, household users will no longer be required to join the free electricity market. Donchev described the situation surrounding the Recovery and Resilience Plan (RRP) as “catastrophic” when the current government took office—with only 8% of funds disbursed and BGN 314 million lost from the previous programming period. Since January 16, over BGN 700 million in payments have been processed.
Bulgaria has also expanded its supercomputer capacity and secured a €90 million EU project, becoming one of only six countries in the bloc with such infrastructure. The country marked a strong return to the global stage with its participation in the Osaka Expo.
Deputy Prime Minister Atanas Zafirov announced an 8.6% pension increase effective July 1. An additional BGN 150 million has been allocated to continue the “Home Care” and “Hot Lunch” programs through September. Over 100,000 people have received digital skills vouchers through flexible online training.
Infrastructure remains a priority, with the Botevgrad–Mezdra road set for completion by the end of June. A new national artistic gymnastics hall is under construction, and municipal investment programs have launched.
Deputy Prime Minister and Transport Minister Grozdan Karadjov presented significant progress across several sectors. He announced the start of a major digital infrastructure project to enhance connectivity and service quality. Five of nine electric shunting locomotives have been delivered, and 60 zero-emission trains are on order. Ten biodiesel-powered trains will also be procured under the RRP.
A new public transportation law is in preparation, along with plans to concession key airports and seaports. A centralized IT system has been implemented at the Road Transport Administration Agency. In postal services, legislation was amended to allow financial compensation for Bulgarian Posts, and a mobile app to monitor driving school compliance will become mandatory in July.
Railway accidents are down 40%, and road incidents have decreased by 23%. In the economic domain, Karadjov cited a package of 126 measures to support SMEs and upgrades to the National Investment Portal to attract foreign investors.
Bulgaria is actively helping domestic companies participate in NATO and EU tenders and is working on legislation for online loans and digital finance. Business forums are planned with Kazakhstan, Hungary, Saudi Arabia, and Japan. A national unit for clean technology development is also being formed.
Healthcare improvements include the accelerated construction of the National Children’s Hospital and expanded screenings for major illnesses. Emergency care centers have been upgraded, and five new ambulances are now in service. Salaries in psychiatric care have risen by up to 50%, with 170 specialists receiving government-funded training.
Two medical helicopters have been delivered, with two more expected this year. Contracts have been signed to modernize 18 psychiatric facilities, and 50 hospitals will receive advanced diagnostic equipment. A national digital platform for medical diagnostics is in development.
A new Film Industry Act is ready, and a working group is developing a new funding model for performing arts. In 2026, Bulgaria will launch its first National Cultural Calendar to coordinate major events, alongside the creation of a central registry for professional artists and cultural experts.
Prime Minister Zhelyazkov concluded by emphasizing the government's ambition to attract world-class investors. He spoke of building a stable, predictable business environment to support “anchor” investors—major players whose presence can transform entire sectors and regions.
“The goal is not just to attract individual investors. We are working to create the conditions for strategic investment that can reshape the country’s economic landscape,” said Zhelyazkov. He confirmed continued interest in the Balkan Stream project and pledged further work on regulatory and infrastructure improvements to facilitate such investments.
“Securing global industry leaders is a top priority that will ensure long-term economic growth and technological advancement for Bulgaria,” the Prime Minister added, thanking coalition partners and stakeholders for their support.
Bulgaria’s Ministry of Labor and Social Policy released its National Employment Action Plan (NAP) for 2025 in early May,
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