site.btaVazrazhdane Submits Draft Law Introducing Direct Link Between BNB Governor's Salary and Country's Price Stability

Vazrazhdane has submitted to the National Assembly a bill to amend and supplement the Law on the Bulgarian National Bank (BNB), proposing the introduction of a direct link between the remuneration of the BNB Governor and members of the BNB Governing Council and the level of price stability achieved in the country, the party announced on Thursday.

The proposal envisages that the law should clearly define what constitutes the total remuneration of the BNB’s senior management, including monthly salaries, additional performance-based bonuses, health and pension insurance, and all other monetary payments. The key new element is the introduction of a clear and measurable mechanism linking the level of the remuneration to the annual inflation rate, the statement said.

Under the draft legislation, when annual inflation is equal to or below 2%, remuneration may be increased by up to 2% in the following year. If inflation exceeds this threshold, the remuneration of the BNB Governor and members of the Governing Council would be reduced by the amount exceeding it. Inflation is to be calculated on the basis of the consumer price index. The transitional and final provisions further stipulate that after the law enters into force, the total remuneration of the BNB Governor and Governing Council members for 2026 will be reduced by 1.5% compared to its level at the end of 2025.

According to Vazrazhdane, the proposal is directly linked to the role and responsibility of the BNB in the context of the adoption of the euro and the participation of the BNB Governor in the Governing Council of the European Central Bank. “Over the years, the BNB has consistently maintained that Bulgaria sustainably meets the inflation criterion and that joining the euro area will not lead to an acceleration of inflation,” the statement said.

The party added that if the BNB Governor has voting rights, tools, and opportunities to influence monetary policy within the Eurosystem, failure to achieve the objective of price stability should entail personal accountability. According to the bill’s sponsors, the absence of price stability is a direct result of an inability to exert effective influence over decision-making and the use of available policy instruments. The proposed mechanism aims to create real incentives for the BNB’s leadership to defend the interests and income purchasing power of Bulgarian citizens, rather than bearing no responsibility for high inflation, the statement said.

Last week, Vazrazhdane submitted a proposal to the National Assembly for a joint plenary hearing of key institutions on the rise in prices of goods and services following the introduction of the euro. The proposal included a request to hear BNB Governor Dimitar Radev as well. The proposal was rejected by the majority of the MPs.