site.btaUPDATED EU Court Advocate General Issues Opinion on Requirements for Bulgarian National Bank Leadership

EU law allows a deputy governor of a national central bank to hold shares in a commercial company, provided that national legislation includes mechanisms to assess whether such participation creates a conflict of interest that could affect the bank's independence or public trust, Advocate General Nicholas Emiliou of the Court of Justice of the European Union said in an opinion on Thursday.

The opinion concerns Case C-611/24, related to a dispute between the Bulgarian National Bank (BNB) and one of its deputy governors, identified as "M.A.".

According to the Advocate General, if a conflict of interest is identified and can be remedied within a set period after appointment, failure to address it within that timeframe may lead to the conclusion that the person no longer meets the requirements for holding the position, provided the deadline is appropriate and clearly defined.

The opinion, which is not binding on the Court, also states that national legislation may require members of a central bank’s governing bodies to declare shareholdings in companies and positions in other organizations in order to prevent conflicts of interest.

Emiliou noted that Article 14.2 of the Statute of the European System of Central Banks (ESCB) and of the European Central Bank applies under EU law only to governors of national central banks, but does not prevent national law from extending similar conditions for early dismissal to deputy governors.

The opinion further underlines that holding shares in commercial companies or positions in non-profit entities is permissible if safeguards exist to identify potential conflicts of interest. If such a conflict is established and not resolved within the prescribed period, this may justify removal from office.

It also stresses that the competent national authority has the power to determine whether a "serious misconduct" has occurred within the meaning of the ESCB/ECB Statute.

The case, brought by "M.A." against the Governing Council of the Bulgarian National Bank, is pending before the Court of Justice of the European Union.

Advocate General opinions are not binding. Their role is to propose an independent legal solution to the Court, which will deliver its final judgment at a later stage.

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Case C-611/24 was instituted on a reference for a preliminary ruling submitted on September 19, 2024 by Bulgaria's Supreme Administrative Court (SAC), which is hearing an appeal lodged by Andrey Gurov against a July 16, 2024 decision of the BNB Governing Council. The Governing Council found that there were two grounds under the Bulgarian National Bank Act for Gurov's dismissal as Deputy Governor in charge of the Issue Department: he did not satisfy the conditions required for the performance of these duties, and he had been found guilty of serious misconduct.

The Governing Council acted on a June 24, 2024 finding of the Anti-Corruption Commission (ACC), according to which Gurov was incompatible with his position at the central bank because, when he took office, he still held shares in a business company and, without authorization from the BNB management, was member of the governing bodies of two non-profit legal entities.

On July 1, 2024, Gurov brought an action against the ACC before the Sofia City Administrative Court, which held that its finding was null and void. That judgment, however, was appealed before the SAC and remains unenforced. On July 25, 2024, Gurov challenged the BNB Governing Board decision before the SAC, asking for a stay of its enforcement. The SAC dismissed this motion but decided to stay its own proceedings on Gurov's appeal, pending an answer from the EU Court of Justice to eight questions that the Bulgarian court referred to it for a preliminary ruling.

On February 19, 2026, Gurov was appointed caretaker Prime Minister by President Iliana Iotova and resigned as BNB Deputy Governor.

Arguing that the legal dispute had thus lost purpose, on February 24, 2026, the BNB in its capacity as respondent asked the SAC to withdraw the request for a preliminary ruling, to leave Gurov's appeal against the Governing Board decision without consideration, and to terminate the proceedings in the case.