site.btaBulgaria To Ask Brussels to Activate National Derogation Clause under Stability and Growth Pact

The government decided to ask the European Commission to activate for Bulgaria a national derogation clause provided for in the Stability and Growth Pact, the government information service said.

The decision is linked to a strategic need for the European Union to increase its defence capacity in the context of heightened geopolitical tensions and threats against European and global security. The decision is also in line with the priorities in the Governance Programme of the Republic of Bulgaria for the period 2025-2029, related to ensuring national security and defence and protecting national interests through active participation in NATO and the EU, building cyber security systems and countering foreign interference in the information space, as well as developing the production capacity of the defence industry, the cabinet said.

The decision of the Council of Ministers also relates to the European Commission's White Paper on European Defence Capability and the Commission's Communication on defence expenditure reporting under the Stability and Growth Pact. The Commission proposes, in view of the geopolitical situation, to allow member states to increase defence spending up to a maximum of 1.5% of 2021 GDP through a coordinated activation of the national derogation clause for a four-year period starting in 2025.

Bulgaria will apply the national derogation clause for defence expenditure of up to 3% of GDP for the years of its operation in order to preserve the predictability and sustainability of public finances and to comply with the rules of the European economic governance framework and national fiscal rules.

The activation of such a clause is in line with European and national strategic objectives and priorities and brings foreseeable benefits for the country's security and defence capabilities.

With the act the Council of Ministers authorizes the Minister of Finance to sign on behalf of Bulgaria and send to the Council of the European Union and the European Commission a letter requesting the activation for Bulgaria of such a national derogation clause.

Acquiring modern, NATO-compatible air and missile defence systems is a priority for us, Defence Minister Atanas Zapryanov said earlier today during a discussion on military activity in Europe and the Middle East, organized by the Atlantic Association of Reserve Officers and held at the Rakovski National Defence College.