Bulgaria is facing intense debate over its draft budget for 2026, with opposition figures describing it as a severe economic shock. Ivaylo Mirchev of the “Yes, Bulgaria” party (party of WCC-DB) criticized the proposed budget as the most damaging in three decades, warning it could push the country toward a financial scenario similar to Romania’s, but within a fraction of the time. He stressed that the plan threatens businesses directly and predicted a repeat of the drastic fiscal measures last seen in 1997.

Further reading: €10.5 Billion Debt Bomb: Bulgaria's First Euro Budget Triggers Fierce Backlash

Mirchev’s concerns were echoed by Martin Dimitrov, who highlighted hidden dangers in the draft, including higher taxes on dividends and increased social security contributions. He argued that the government is creating a discretionary fund of 5 billion leva, which he described as a mechanism for unchecked spending. Dimitrov further warned that these fiscal policies risk enlarging Bulgaria’s shadow economy. The opposition also condemned the planned January 1 obligation for all commercial entities to adopt state-approved software, a requirement previously canceled in 2020, citing it as an additional burden on businesses.

Defending the budget, IMF Managing Director Kristalina Georgieva emphasized that a deficit capped at 3 percent of GDP and a debt ratio of 24 percent keeps Bulgaria in a sound macroeconomic position while supporting investment and growth. Finance Minister Temenuzhka Petkova added that much of the planned expenditure relates to projects under the Recovery and Resilience Plan, addressing delays in fund absorption between 2021 and 2024.

Meanwhile, European Central Bank President Christine Lagarde reaffirmed Bulgaria’s full membership rights in the eurozone, underscoring equal voting power regardless of the country’s size. BNB Governor Dimitar Radev called for a return to disciplined fiscal policy, noting that Bulgaria has been drifting from this path since 2020. Radev also reiterated the readiness of the country’s banking system for euro adoption and urged citizens to approach the transition calmly.