site.btaMedia Review: June 3

BUDGET – DEBT – PENSIONS

The Bulgarian media cover the series of parliamentary decisions and proposals that sparked debate over pension policy and fiscal priorities, including changes to COVID-era supplements, indexation rules, and broader efforts to contain budget spending.

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Dnevnik: The ruling Progressive Bulgaria coalition withdrew a proposal to raise Bulgaria’s debt ceiling by EUR 3.8 billion after opposition parties criticized the attempt to introduce the measure between readings of a bill and Continue the Change threatened to challenge it before the Constitutional Court.

Budget Committee Chair Konstantin Prodanov said the Finance Ministry considered the proposal legally sound but agreed it should be submitted through the regular legislative procedure. The government plans to reintroduce the measure through the Council of Ministers, accompanied by a justification for the additional borrowing.

Despite withdrawing the debt proposal, the governing coalition approved plans to reduce state subsidies for political parties and to abolish the 60-lev COVID supplement for pensions granted after July 1, 2026, while excluding the supplement from future pension indexation calculations.

The opposition accused the government of undermining smaller parties through subsidy cuts and of targeting pensioners to achieve budget savings. Continue the Change leader Assen Vassilev argued that the measures would leave many retirees below the poverty line and said the government was “reaching into pensioners’ pockets” while claiming to fight oligarchic influence.

Government representatives defended the changes as necessary fiscal measures, arguing that social support should be targeted to those most in need rather than distributed universally. They maintained that pensioners would still receive the legally mandated 7.8% pension increase from July 1.

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Despite repeated claims by most opposition parties that they are not populist and are prepared to support difficult decisions, no parliamentary group backed the ruling majority’s proposal to remove COVID-era supplements from pensions granted after July 1, 2026, Mediapool reported.

As a result, the amendment was approved at second reading in the parliamentary Budget Committee on Tuesday solely with the votes of the ruling Progressive Bulgaria coalition. The proposal is yet to be considered in the plenary chamber.

Budget Committee Chair Konstantin Prodanov said the supplement would be abolished only for newly granted pensions because the COVID-19 crisis had long since passed.

“For the same reason there is no supplement for the grain crisis of the 1990s, the global financial crisis, and so on,” Prodanov argued.

The 60-lev monthly supplement, introduced during the pandemic, was eventually incorporated into the pension formula. Although it was initially conceived as a temporary measure, it effectively became permanent because no government was willing to bear the political cost of abolishing it or transforming it into targeted social assistance for those in need.

According to Prodanov, such interventions in the social security system discourage people from contributing to it. While most opposition parties acknowledged that the COVID supplements do not fit the principles of the contributory pension model, they argued that pensioners should not lose acquired rights. Opposition lawmakers urged the new government to focus on tackling oligarchic influence rather than targeting what they described as “the most vulnerable” members of society.

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Nearly half of all new pensions granted in Bulgaria during the first quarter of 2026 were disability pensions, according to National Social Security Institute (NSSI) data cited by Trud. Of the 27,616 new pensions awarded between January and March, 13,513, or 49%, were disability-related.

The increase has been linked to changes introduced in 2023 to the methodology for assessing permanent disability, which now takes into account multiple health conditions when determining eligibility. As a result, the share of disability pensions has risen steadily in recent years and now exceeds half of all newly granted pensions when social disability pensions are included.

The article also highlights significant disparities within the pension system. Retired military personnel, police officers and employees of security services receive average pensions of about EUR 934 per month, compared with roughly EUR 494 for other retirees. The higher pensions are attributed to preferential retirement rules and service-time calculations that allow years worked in the security sector to count more heavily toward pension entitlements.

NSSI data further show that men receive average pensions nearly 20% higher than women, while pension levels vary considerably by region. The highest average pensions are paid in Sofia, followed by Burgas and Pernik, while the lowest are recorded in Razgrad and Silistra.

The article also reports on a parliamentary debate over pension policy. Lawmakers approved a 7.8% increase in the minimum pension from July 1, raising it to about EUR 348. At the same time, the ruling Progressive Bulgaria coalition backed a proposal to end the 60-lev COVID supplement for pensions granted after that date and to exclude the supplement from future indexation calculations for existing pensions.

The government argues that the COVID supplement was a temporary social measure that distorted the pension system and that ending it could save around EUR 30 million by the end of 2026. Opposition parties criticized the move, saying it would effectively reduce pension increases for retirees and disproportionately affect one of the country’s most vulnerable groups. Officials suggested that targeted social assistance, including consumption vouchers for low-income households, could replace universal support measures. The government also confirmed that it had withdrawn a proposal to increase Bulgaria’s debt ceiling and would resubmit it later through the regular legislative process.

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The parliamentary Budget Committee approved at second reading a proposal by the ruling Progressive Bulgaria coalition to exclude the 60-lev (EUR 30.68) COVID-era pension supplement from the formula used to calculate new pensions starting July 1, Duma reported.

The measure would affect newly granted pensions, while existing pensioners would continue receiving the supplement. However, the supplement would no longer be indexed under the so-called Swiss rule, meaning pension increases for current retirees would be slightly smaller than if the amount were adjusted by the planned 7.8% annual increase.

According to calculations discussed during the committee meeting, removing the supplement for new pensioners could save the state roughly EUR 9.4 million by the end of 2026. Freezing indexation of the supplement for existing pensioners could generate additional annual savings of about EUR 22 million.

Opposition lawmakers criticized the proposal, arguing that the government was targeting pensioners rather than tackling corruption and organized crime. During the debate, Budget Committee Chair Konstantin Prodanov defended the measure, saying that “not all pensioners will die of hunger without EUR 2,” referring to the approximately EUR 2.39 monthly increase that pensioners would forgo because the supplement would no longer be indexed.

After criticism of the remark, Prodanov sought to soften his position by referring to the possibility of future targeted social assistance measures, noting that spending reductions would also affect recipients of maximum pensions and citing broader fiscal pressures facing the government.

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According to NOVA TV, Prodanov said that taking on new public debt is an “objective reality” given the current fiscal situation.

Speaking on the TV channel’s morning show, he said the budget deficit had reached a record EUR 2.5 billion as of May, increasing by EUR 750 million in a single month. He warned that the State’s fiscal reserve had fallen to critically low levels, with usable funds below EUR 1 billion.

Prodanov said ministries were conducting analyses and that further findings would soon reveal alleged irregularities, including suspected misuse of funds, irregular public procurement procedures, and advance payments.

He argued that while pension changes adopted in Parliament will increase pensions for more than 800,000 pensioners under the so-called Swiss rule, the fiscal situation requires broader consolidation measures. He also reiterated that the COVID-era pension supplement was intended as a temporary measure and should be replaced with more targeted social assistance.

On debt policy, Prodanov said new borrowing is necessary due to both domestic budget pressures and the international interest rate environment, as well as advance payments of EUR 4.4 billion under the Recovery and Resilience Plan, which will later be reimbursed.

He added that reducing political party subsidies has limited fiscal impact but carries symbolic value, and confirmed that MPs’ salaries will be frozen at their current levels. He said more significant fiscal measures are still forthcoming.

BABA ALINO ILLEGAL CONSTRUCTION SCANDAL

The media continues its reporting on the growing scandal surrounding an allegedly illegal residential complex in the Baba Alino area near Varna.

Dnevnik focuses on its developer, Oleg Nevzorov, and the apparent institutional failures that allowed the project to proceed.

The media outlet notes that Nevzorov, who has referred to Varna as “Little Odesa,” moved to Bulgaria after Russia’s invasion of Ukraine and publicly promoted ambitious development projects in the city. According to Dnevnik, newly emerging information suggests that he was able to overcome administrative obstacles and may have benefited from protection at the highest levels of government, although the nature and source of that support remain unclear.

Nevzorov is reportedly no longer in Bulgaria after being expelled and later returned by the State Agency for National Security (SANS), but authorities have yet to explain where he went or how he left the country.

Dnevnik says the case has highlighted what it describes as widespread institutional inaction over the construction of roughly 100 buildings in the Baba Alino complex, which media reports have sometimes described as a “town” because of its size. Officials continue to shift responsibility among institutions while questions remain about how such a large project could have been developed despite alleged violations.

The report also examines Nevzorov’s background in Ukraine. He is presented as a lawyer and developer linked to Odecom Development and the KYB Corporation, but Ukrainian media investigations have associated his name with unfinished residential projects, investor protests, property seizures and allegations of double sales of real estate. Nevzorov has denied wrongdoing.

According to Dnevnik, Nevzorov also financially supported a pro-Russian Ukrainian political party in 2020. Bulgarian National Television (BNT), citing security-service sources, reported suspicions of money laundering involving Russian-linked financial networks, while security experts have questioned the origin of the capital behind his Bulgarian projects.

Meanwhile, KYB Corporation has released a planning document authorizing the preparation of a detailed development plan for the Baba Alino properties and insists that it is operating fully within the law. Varna Deputy Mayor for Construction Plamen Kitipov confirmed issuing the authorization but said it was a procedural step that did not address the legality of the existing buildings.

One of the recently dismissed municipal officials involved in construction oversight has claimed that responsibility is being shifted onto convenient scapegoats and called for a full investigation. He said municipal inspectors were able to access the site during a March 2026 inspection and subsequently began issuing violation notices.

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MP Kosta Stoyanov of the Vazrazhdane party said that “everyone knew what was happening” in relation to the Baba Alino construction case, during an appearance on the morning show on Bulgarian National Television (BNT).

Stoyanov argued that both local residents and public institutions had been aware of the developments but had failed to act, pointing to what he described as systemic inaction by municipal and national authorities. He also said he had no information suggesting involvement of local construction companies in the project.

The MP called for the bank accounts of the KYB group to be frozen and urged authorities to take stronger enforcement measures.

Stoyanov described KYB Corporation as owning extensive property assets and continuing to purchase real estate along the Black Sea coast, not only in Varna municipality.

He added that Bulgarian law requires illegal constructions to be removed at the expense of the responsible party, warning that if developers do not comply, the state would have to cover demolition costs.

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Political scientists Stoycho Stoychev and Petar Cholakov told bTV that the illegal Baba Alino construction case near Varna reflects systemic institutional failure, political protection and long-standing governance problems. They argued that such large-scale developments would not be possible without influence and protection within political and administrative structures, and said the case had likely been visible to local residents and authorities for years.

Cholakov described the affair as part of a recurring pattern in Bulgaria where similar violations rarely lead to accountability, pointing to the role of both local institutions and state security services.

The report also outlines the scale of the Baba Alino complex, which includes over 100 buildings allegedly constructed without proper permits in a forest area near Varna. Despite its disputed legality, the site has electricity, water supply, and occupied housing, with residents paying taxes and utility bills.

Authorities first received signals about possible illegal construction in 2023, but the project reportedly continued expanding. The investor is linked to KYB Corporation and businessman Oleg Nevzorov, whose whereabouts remain unclear.

US AMBASSADOR – NOMINATION

Dnevnik reports that U.S. President Donald Trump has nominated Douglas Arlington Holder Jr. as the next U.S. ambassador to Bulgaria, continuing a broader trend of political appointments to key diplomatic posts.

Holder, a former Republican member of the Florida House of Representatives (2006–2014) and co-founder of the lobbying firm The Legis Group, would be the first non-career diplomat to serve as U.S. ambassador to Bulgaria if confirmed by the Senate. His firm has worked with clients in sectors including healthcare, education and airport infrastructure.

The nomination reflects what analysts describe as a shift toward politically connected figures in U.S. diplomatic appointments. According to a Reuters investigation cited by Dnevnik, only about 9% of ambassadorial nominees under Trump’s second term have been career diplomats, a sharp decline in institutional diplomatic experience compared with previous administrations.

Career diplomats are traditionally non-partisan professionals with decades of foreign service experience, while political appointees are often campaign donors, former lawmakers or close allies of the president with limited diplomatic backgrounds.

Holder’s nomination comes after a delay in filling the post and follows the departure of former ambassador Kenneth Merten in early last year. If confirmed, Holder would formally take up the role after approval by the U.S. Senate.

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Sega: U.S. President Donald Trump has nominated Douglas Holder as the next United States ambassador to Bulgaria.

Holder, 59, served for eight years in the Florida House of Representatives. He holds a degree in political science from Tennessee and is a long-time member of the Republican Party with experience in private business.

The nomination must be approved by the U.S. Senate before it is finalized. If confirmed, Holder would take up the post nearly a year and a half after Kenneth Merten stepped down as U.S. ambassador at the beginning of last year.

Currently, the U.S. Embassy in Bulgaria is headed by Chargé d’Affaires Martin McDowell.

The nomination of Holder for the post is covered by other Bulgarian media as well.

WASTE COLLECTION – SOFIA

A potential waste collection crisis is emerging in Sofia’s Zone 3 (Izgrev, Poduyane and Slatina) ahead of the summer, according to BNR. Boris Bonev of  Save Sofia warned that legal and contractual limits on temporary arrangements for waste collection are about to be reached, which could disrupt services.

He criticized the city’s management of waste contracts, saying some zones had contracts extended or replaced at higher costs while others were left to expire, creating unequal treatment and contributing to the crisis. Bonev also said the municipal waste plant is currently handling only basic collection functions and lacks full capacity.

He called for urgent interim measures to secure waste collection in the affected districts and proposed long-term reforms, including stronger municipal capacity and more transparent procurement procedures.

IN MEMORIAM – LUBEN DILOV JR

Bulgarian media report on the passing of writer and long-serving MP Luben Dilov Jr, who died on June 2. Numerous politicians, writers, artists, professionals and public figures expressed their condolences.

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The Bulgarian National Assembly observed a minute of silence in memory of MP Luben Dilov, Bulgarian National Radio (BNR) reported.

The news of his passing was announced from the parliamentary rostrum by MP Toma Bikov at the start of the plenary session.

Bikov noted that Dilov had been elected to the current Parliament, but emphasized that his contribution to Bulgarian society extended beyond his political activity.

He also highlighted that Dilov was known for bringing humor and self-irony into parliamentary work, adding that such a spirit remains necessary in the future.

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Bulgarian National TV recaps on Dilov Jr’s biography. He is a long-serving Bulgarian politician and public figure who has been a member of multiple National Assemblies, including the 40th through 51st parliaments. He was elected on GERB’s ticket to the 52nd National Assembly but did not take the oath of office.

As a member of parliament, he has been actively involved in the parliamentary committees on tourism and on culture and media.

According to the website of the political movement Gergyovden [St. George’s Day], where he served as honorary chairman, Dilov is also a writer, satirist, journalist, screenwriter and producer of various media projects.

He is the son of Bulgarian science fiction writer Luben Dilov (1927–2008). He graduated from a Sofia high school and earned a degree in print media journalism from Sofia University “St. Kliment Ohridski.” He has worked as an editor for several print publications.

Dilov is among the creators and ideologues behind several popular Bulgarian television productions, including the satirical shows “Ku-ku” (1990–1994), “Kanaleto” (1995–2004), “Hushove” (1998–2000) and “The Slavi Show” (2000–2003). He has also founded and edited the satirical newspaper Ku-ku and contributed to early private national radio programming.

BULGARIAN-AMERICAN POLICE OFFICER – SHOOTING

Bulgarian-born police officer Christian Ivanov was critically injured during a shooting in Atlantic City, New Jersey, on June 2, according to 24 Chasa.

Ivanov, a sergeant with the Atlantic City Police Department's SWAT unit, was one of two officers wounded while conducting a search operation when gunfire erupted. The suspected shooter was killed.

According to U.S. media reports, one officer sustained life-threatening injuries, while the other suffered non-life-threatening wounds. Atlantic City Mayor Marty Small said one of the bullets came close to an officer’s head, but the officer was protected by a helmet.

Authorities have released few details as the investigation remains ongoing.

Meanwhile, a fundraising campaign has been launched on social media to support Ivanov and his family, with local police organizations urging the public to donate and keep the injured officer in their prayers.

“Bulgarian Police Officer in the US Is Fighting for His Life after Being Shot during Operation” reads bTV’s headline. Trud and Standart also cover the story.