Small Businesses Face Toughest Challenges Ahead of Bulgaria’s Euro Adoption in 2026
Small and medium-sized enterprises in Bulgaria are expected to face the greatest difficulties once the euro becomes the country’s official currency in 202
Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev announced in Veliko Tarnovo that Bulgaria aims to start producing drones on a large scale within the next year and a half, covering both military and civilian needs. Speaking at the conference "Consolidation of the European Defense Industry - Opportunities and Challenges," held under his patronage and organized by the Polish Embassy in Sofia, the European Commission's Representation in Bulgaria, and the Veliko Tarnovo Municipality, Donchev stressed that Bulgaria is seizing its moment in the defense sector.
He recalled that Bulgaria did not miss its chance to establish a gunpowder factory and added that within two years drone production would begin. The Deputy Prime Minister emphasized the necessity to revive cooperation between the Bulgarian military and industry, highlighting that progress should come from joint efforts among enterprises and scientists across EU member states. He argued this is not a task to be tackled on a purely national basis but requires leveraging the full potential of all member states’ territories.
Donchev warned against the division of Europe into producer and consumer countries, or “economic deserts,” urging for balanced industrial development. He pointed out that cities along the European transport corridor 9 - including Veliko Tarnovo, Ruse, Gabrovo, Kazanlak, Plovdiv, and Stara Zagora - hold the potential to become Bulgaria’s industrial backbone, particularly in the defense field.
Highlighting ammunition production as a key goal, Donchev said Bulgaria must be capable of manufacturing ammo for all weapons systems used by its army. He also told reporters that Europe must prioritize its own security, stressing that sufficient funds exist both from national budgets and European-level sources, including loans. He called for wise investment to create new opportunities for industry, producing equipment not only for military but also civilian markets.
Regarding gunpowder factories, Donchev said construction is planned for the coming years, with talks ongoing for possible private investors alongside state-owned options. Regardless of global geopolitical shifts, Bulgaria is set to invest billions in defense industry modernization over the coming years.
He concluded that, at this stage, clear focus is required on needs and capabilities: Bulgaria has already financed new aircraft for the air force, ordered new naval equipment, and is acquiring Stryker vehicles for the land forces. The country now also needs new artillery systems, and its industry must be fully capable of supplying ammunition for all active military platforms.
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