site.btaBulgaria Need to Cut Spending amid Excessive Deficit Procedure Risk, Labour Minister Says

Bulgaria will need to tighten spending, Labour and Social Policy Minister Nataliya Efremova said on Nova TV on Sunday, commenting on President Rumen Radev's statement that the European Commission is expected to launch an excessive deficit procedure against Bulgaria on June 3.

Efremova said such a procedure would affect budget discipline at all levels but stressed that social payments and support measures are guaranteed by law. She added that her ministry would review the effectiveness of social spending and seek greater use of available European funding.

The minister said there is parliamentary consensus to increase the minimum pension by 7.8% under the Swiss rule, noting that no discussions are under way to change the mechanism.

Regarding child and family benefits, Efremova said the income threshold should be updated to prevent families from losing eligibility due to increases in the minimum wage. She added that a comprehensive review of social payments is planned, with the aim of directing support more effectively to the most vulnerable groups.

Efremova also said the current automatic mechanism for setting the minimum wage has not delivered satisfactory results over time. Efforts will focus on strengthening social dialogue in line with EU requirements, with possible changes to be considered in the 2027 budget.

She said broader reforms in social spending are expected to begin in 2027, aiming to improve targeting and efficiency without reducing support.

Commenting on disability assessments, Efremova said most of the approximately 800,000 disability certification decisions are likely legitimate, but added that social needs assessments could be improved to ensure assistance is tailored more accurately to individual needs.