site.btaFinance Minister Donev Takes Part in ECOFIN Meeting

Bulgaria's Deputy Prime Minister and Finance Minister Galab Donev attended a meeting of the EU Economic and Financial Affairs Council (ECOFIN) in Luxembourg on Friday.

During the meeting, the Council discussed the economic and financial impact of Russia’s aggression against Ukraine, Europe’s economic recovery, the 2026 European Semester Spring package, and the implementation of the economic governance framework.

With reference to the European Commission’s report on the launch of an excessive deficit procedure against Bulgaria, Donev briefed the Council on the domestic and external factors affecting the country’s fiscal position. The accumulated imbalances in public finances stem from adverse geopolitical developments, combined with permanent expenditure commitments adopted by several successive parliaments without corresponding revenue-offset measures.

Donev said that restoring the sustainability of public finances is among the government’s top priorities. He noted that active work is underway on preparing the 2026 State Budget Bill, with the goal of securing its adoption by the National Assembly by the end of July. The Council of Ministers is launching a fiscal consolidation process aimed at bringing Bulgaria back into compliance with the reference limits set out in the Stability and Growth Pact and ensuring the long-term sustainability of public finances.

During the legislative discussions, ministers exchanged views on the proposed regulation extending the scope of the carbon border adjustment mechanism. A general approach was reached on the targeted revision of the mechanism, reflecting its important role in preventing carbon leakage and ensuring a level playing field between European and foreign producers.

The Council also discussed the market integration and supervision package, which includes measures aimed at removing barriers and unlocking the full potential of the EU single market for financial services. Donev noted that the cross-border dimension should be a key element in identifying significant entities subject to direct supervision at the EU level. This should focus on companies whose activities, risk profile, and potential impact extend beyond the borders of a single Member State and could affect the functioning of the internal market or financial stability across multiple jurisdictions.

Bulgaria maintains that the future framework for direct supervision by the European Securities and Markets Authority should strike a balance between stronger supervisory convergence at the EU level and the preservation of sector-specific expertise and the role of national competent authorities.

Donev also participated in Thursday's Eurogroup meetings, held in both regular and inclusive formats.

Also on Thursday, Donev attended the Annual Meeting of the Board of Governors of the European Stability Mechanism in Luxembourg for the first time. Prior to the meeting, he took part in the official ceremony marking Bulgaria’s accession to the Mechanism, the Finance Ministry said.