site.btaUPDATED Local and Central Executive Authorities Hold National Meeting, Seek Common Ground on Regional Development

Fiscal decentralization, regional development, investment, infrastructure, social services and the absorption of European Union funds were among the key topics discussed at a National Meeting of Local and Central Executive Authorities in Sofia on Thursday. The forum highlighted both the challenges facing municipalities and the government's plans to strengthen cooperation with local authorities in areas ranging from public investment and transport connectivity to waste management and social care.

The event, organized by the National Association of Municipalities in the Republic of Bulgaria (NAMRB) as part of celebrations marking its 30th anniversary, brought together more than 200 mayors from across the country with Prime Minister Rumen Radev, Deputy Prime Ministers Atanas Pekanov and Alexander Poulev, Regional Development and Public Works Minister Ivan Shishkov, Education Minister Georgi Valchev, Labour and Social Policy Minister Natalia Efremova, Environment and Water Minister Rositsa Karamfilova, and Health Minister Katya Ivkova.

Opening the forum, NAMRB Chairman and Veliko Tarnovo Mayor Daniel Panov renewed municipalities' call for fiscal decentralization, proposing the gradual transfer of 20% of personal income tax revenues to local governments, accompanied by an equalization mechanism for smaller municipalities. He argued that local authorities need greater financial autonomy to address regional challenges and urged the government to agree on a decentralization framework by the end of 2026. Panov also criticized what he described as a "bureaucratic thinking" in state institutions that delays decision-making and leaves municipalities to deal with the consequences of unfinished projects and infrastructure works.

Prime Minister Rumen Radev expressed support for financial decentralization, saying Bulgaria's highly centralized model of public finance has "been exhausted" and is limiting local initiative and development. He described municipalities as the backbone of statehood and stressed that stronger regions require stronger local governments. Radev also highlighted the need to improve transport connectivity through projects such as the Hemus and Struma motorways and the Vidin–Botevgrad and Ruse–Veliko Tarnovo roads, while calling for greater use of public-private partnerships to finance major infrastructure investments. He further urged municipalities to take a more active role in securing EU funding, noting that only 23% of available European funds have so far been disbursed.

Radev also said he would push in Brussels for the concept of "industrial cohesion" to be included in discussions on the EU's next Multiannual Financial Framework. He argued that the planned new competitiveness fund, expected to pool more than EUR 400 billion, should not direct resources only to the most developed member states and the strongest companies. Less-developed countries such as Bulgaria should also benefit from the new funding mechanisms, be integrated into common European value chains and take part in major EU industrial projects, Radev said.

Deputy Prime Minister Atanas Pekanov focused on Bulgaria's position in upcoming negotiations on the European Union's next long-term budget, arguing that cohesion policy should remain a central pillar of EU spending. He warned against cuts to cohesion funding and stressed that the policy is an investment in the functioning of the European single market rather than a transfer mechanism between richer and poorer countries. Pekanov also underscored the urgency of implementing Bulgaria's Recovery and Resilience Plan, saying the government is working to meet critical deadlines and improve the country's performance in absorbing available funds.

Deputy Prime Minister and Economy, Investments and Industry Minister Alexander Poulev presented the government's plans to make investment a national priority. He outlined an administrative reform that will consolidate investment-related agencies and policies under the Economy Ministry, alongside the creation of a central coordination unit to serve as a single point of contact for municipalities and investors. Poulev said the government faces the urgent task of activating more than EUR 3 billion in European funding within the next three months and announced that the Bulgarian Development Bank will soon be transferred to the Economy Ministry, with a stronger focus on supporting municipalities and local development.

Labour and Social Policy Minister Natalia Efremova warned that Bulgaria's social system is coming under increasing pressure as demographic challenges deepen and demand for social services grows. She emphasized that social services remain a shared responsibility of central and local authorities and said efforts are under way to improve service quality. Efremova also called for stronger oversight of social care facilities, including additional powers for the Social Services Quality Agency to close unlicensed establishments operating in poor conditions.

Environment and Water Minister Rositsa Karamfilova highlighted Bulgaria's lagging performance in waste management, noting that the country recycles less than 17% of household waste compared with an EU average of around 48%. She said the government would pursue a balanced deposit-return system for beverage packaging without allowing either a state or private monopoly to emerge. Karamfilova also warned that Bulgaria faces an advanced EU infringement procedure over its failure to fully implement the "polluter pays" principle in municipal waste fees and could face a court ruling within the next two years if reforms continue to be delayed.

Regional Development and Public Works Minister Ivan Shishkov identified transport connectivity as the key to reducing regional disparities and creating equal conditions for development across the country. He argued that regions with strong transport links attract investment and economic activity, while poorly connected areas continue to fall behind. Despite budget constraints, Shishkov said the government remains committed to improving infrastructure and ensuring that all regions are better connected to one another.

Education Minister Georgi Valchev warned of widening disparities across Bulgaria's education system, describing the growing gap between high-performing schools and those failing to provide adequate preparation as one of the sector's most serious challenges. He argued that children across the country do not enjoy equal educational opportunities. In the context of Bulgaria's demographic crisis, he said, the quality of human capital has become a key consideration for investors and is closely linked to the performance of the education system. He said that despite education being declared a priority by successive governments and receiving substantial funding through national and European programmes, significant problems persist at all levels of education, from preschool to secondary school. He added that higher education also faces challenges, though less severe ones.

Health infrastructure, staffing shortages, hospital management and the development of outpatient care are among the main challenges facing Bulgaria's healthcare system, Health Minister Katya Ivkova said. She said delays at the local level had significantly hindered the implementation of a long-running emergency healthcare infrastructure project. Originally designed to improve access to emergency medical services for 98% of the population, the project was launched three years behind schedule and is now being completed with national funding.

Throughout the discussions, both government representatives and local authorities emphasized the need for closer cooperation, faster decision-making and more effective use of public resources to address regional imbalances and support Bulgaria's long-term development.