site.btaEuropean Commission Warns of Risk of Non-Compliance of Bulgaria’s 2026 Budget Plans with EU Fiscal Requirements

The European Commission on Tuesday presented its economic priorities for 2026, outlining key economic and social objectives aimed at strengthening the EU’s competitiveness. Bulgaria is among the countries considered at risk of non-compliance with the EU fiscal framework and the country is among nine Member States that will undergo an in-depth review in spring 2026.

According to the Commission, Bulgaria's national budgetary policy planned for 2026 may not fully meet the EU’s fiscal requirements. Under EU fiscal rules, national frameworks define how Member States plan, execute and monitor their budgets, including fiscal rules, medium-term budgetary plans and independent fiscal institutions. Since 2024, each Member State must prepare a multi-year fiscal plan with a defined net expenditure path that ensures sustainable public debt and a deficit below 3% of GDP. The Council approves the plans, and countries must report annually on implementation, including in cases of "escape clauses", such as defence-related spending.

In addition, in the social dimension of the analysis, Bulgaria is among nine Member States that will undergo an in-depth review in spring 2026. The assessment will focus on risks related to social convergence, including low productivity, labour and skills shortages, and higher levels of poverty or other social challenges compared to the EU average.

Against the backdrop of a complex geopolitical landscape, the Commission calls for coordinated action to boost productivity, stimulate innovation and expand strategic investment. This recommendation is part of the autumn package of documents released under the European Semester, which reviews economic and social challenges across the EU and provides policy guidance to Member States.

The published documents are based on a stable, though moderate, economic outlook, including a resilient labour market, rising domestic consumption and easing inflation.

At the same time, the EU continues to face structural challenges such as low productivity, demographic pressures, substantial defence investment needs and the demands of the green and digital transitions. The Commission stresses the need for Member States to strengthen competitiveness, maintain sound public finances and channel resources toward strategic investment.