site.btaMedia Review: September 1

VON DER LEYEN VISIT – VMZ SOPOT 

Media outlets cover the recent visit by European Commission President Ursula von der Leyen to Bulgaria and the Vazov Machine-Building Works (VMZ) in Sopot. 

The Bulgarian media circulate a story by the Financia Times (FT) about a suspected Russian interference attack targeting Ursula von der Leyen disabled GPS navigation services at a Bulgarian airport, forcing the European Commission President’s plane to land using paper maps.

FT reports that a jet carrying von der Leyen to Plovdiv on Sunday afternoon was deprived of electronic navigational aids while on approach to the city’s airport, in what three officials briefed on the incident said was being treated as a Russian interference operation. “The whole airport area GPS went dark,” said one of the officials. After circling the airport for an hour, the plane’s pilot took the decision to land the plane manually using analogue maps, they added. “It was undeniable interference.”

The Kremlin and European Commission have been approached for comment. The Bulgarian Air Traffic Services Authority confirmed the incident in a statement to the Financial Times.

Dnevnik: Ursula von der Leyen told Bulgarian media that Russian President Vladimir Putin has not changed and will not change, and that the war can only be stopped through disarmament measures.

VMZ Sopot as part of her tour along the EU’s eastern border. Von der Leyen thanked Bulgaria for contributing to military aid for Ukraine and for helping ensure the EU’s security by replenishing its reserves.

Ursula von der Leyen stated that Russia has established a full-scale, though somewhat outdated, military economy that will continue producing weapons. She thanked Bulgaria for joining the EU’s Security Action for Europe (SAFE) mechanism, which allocates EUR 150 billion to enhance and modernize the bloc’s defense capabilities. She noted that at the start of the war, one-third of the weapons used by Ukraine came from Bulgaria.

Bulgarian Prime Minister Rosen Zhelyazkov highlighted that the EU’s “White Paper” on defense and the Safe mechanism provide clear opportunities for developing Bulgaria’s defense industry, including technology transfer and increased economic competitiveness. He emphasized Bulgaria’s strategic role in Southeast Europe and the importance of strong parliamentary support to maintain this role.

GERB leader Boyko Borisov addressed protesters against military production, stressing the importance of strong defense for national security and the sustainability of jobs created with Rheinmetall. The project includes production facilities for 150mm shells and gunpowder, expected to create over 1,000 jobs, with 2 million shells slated for production by the end of the year.

Von der Leyen visited Bulgaria from Poland and will continue her tour to Romania. 

*** 

Trud: The leader of Vazrazhdane, Kostadin Kostadinov, declared that the time of the “failed Brussels elite and their local servants” is coming to an end. He made the statement on Facebook following a protest yesterday at VMZ-Sopot against European Commission President Ursula von der Leyen.

Kostadinov claimed that authorities had to transport von der Leyen by helicopter, which landed almost in an emergency on an empty parking lot inside the factory, and that she entered the facility through rear entrances rather than the main gates.

*** 

The Bulgarian defense industry, through “Vazovski Mashinostroitelni Zavodi” (VMZ-Sopot), will enter a joint venture with the German Rheinmetall company, in which Rheinmetall will hold 51% and Bulgaria 49%. Defence Minister Atanas Zapryanov explained on NOVA TV that Bulgaria’s share of the investment is around EUR 500 million, financed through the EU SAFE mechanism with a 10-year grace period and a 35-year repayment plan.
The new factory will produce gunpowder and 155mm artillery shells, modernizing Bulgaria’s artillery and aligning with NATO standards. The project is expected to create over 1,000 jobs and must be completed within three years of signing. Zapryanov emphasized that the investment serves Bulgaria’s national defence interests, as well as Europe’s broader goal of expanding and modernizing defence production.

He also stressed that Bulgaria’s armed forces act as a deterrent: strong military capabilities prevent aggression. Regarding post-war Ukraine, Zapryanov confirmed Bulgaria’s involvement in security planning but stated there are no plans to send Bulgarian troops to Ukraine after the conflict ends.

Political support from the parliamentary majority, specifically the GERB-UDF coalition and leader Boyko Borisov, is essential for securing the budget and approving the project in Parliament.

This project represents a major modernization step for Bulgaria’s defence sector, integrating the country into European and NATO defense production networks. 

HOME SCENE – INTERIOR MINISTER – INTERVIEW 

Dnevnik covers an interview given by Interior Minister Daniel Mitorv on bTV, in which he discusses current topics.

Interior Minister Daniel Mitov rejects claims that MRF–New Beginning leader Delyan Peevski exerts influence over the Interior Ministry, saying the opposition bloc Continue the Change-Democratic Bulgaria sees Peevski behind every action to its own detriment. He defends General Secretary Miroslav Rashkov as a professional and denies allegations of secret dealings between GERB leader Boyko Borissov and suspected smuggler Nikola “Paskal” Nikolov, which were raised by former interior minister Ivan Demerdzhiev. 

Mitov contrasts recent drug seizures under his term with low figures during Demerdzhiev’s time, suggesting the earlier period looked like a cover-up. He also criticizes President Rumen Radev for boasting about foreign investment, failing to ensure balance between the branches of power, and delaying appointments in the Interior Ministry and the State Agency for National Security. Mitov adds that Radev had turned the presidency into a propaganda tool and rejected claims of political purges in SANS. 

CRYPTO MARKET – BULGARIA 

Capital runs a story about the cryptocurrency market in Bulgaria, its regulations and their implications.

Bulgaria is seen as a crypto-friendly destination, with around 300,000 citizens (6.1%) holding virtual currencies. The country is home to Nexo, a major global crypto company, and was also the origin of the infamous OneCoin pyramid scheme. Despite this, the sector has faced both major successes and high-profile failures, such as FTX, reflecting the challenges of unregulated crypto markets.

Bulgaria, as an EU member, falls under the MiCA regulation, which has been implemented locally with oversight by the Financial Supervision Commission (FSC) and the Bulgarian National Bank. The new crypto-assets law came into force in July 2025, giving companies until July 1, 2026, to obtain a licence. However, no Bulgarian-rooted company has yet applied, while around a dozen foreign firms have notified their presence using the EU passport system. Key hurdles for licensing include minimum capital requirements and the reputation of management personnel.

The FSC currently lists 213 companies in Bulgaria, ranging from crypto exchanges and asset managers to firms with unclear or minimal activity. Many have very low capital, making it unlikely they will meet licensing requirements without significant investment. Only about ten companies currently satisfy some capital criteria, including Bonex.org, Altcoins.bg, Futuritix.io, and blockchain.bg.

Industry representatives warn that the new regulations could impose heavy administrative burdens, especially on start-ups, potentially driving some businesses outside the EU. Others see opportunities, suggesting clear rules may attract reputable international firms. Binance Europe and the local blockchain association highlight Bulgaria’s potential to draw crypto companies due to its significant trading volume and established players.
Differences in how EU member states implement MiCA could lead to regulatory arbitrage, with some firms choosing jurisdictions with lighter oversight while still operating across the EU. Companies like OKX, Gemini, and Bybit are already taking advantage of such flexible jurisdictions, though ESMA is monitoring the situation to prevent a race to the bottom in standards. 

ECONOMY – FINANCE MINISTER 

Bulgarian National TV runs an interview with Finance Minister Temenuzhka Petkova in which she discusses  the consolidated fiscal programme, VAT revenues, expenditures, among other things. 

As of the end of July 2025, Bulgaria’s consolidated fiscal program recorded revenues, aid, and donations of 46.3 billion BGN, an increase of 5.5 billion BGN compared to the same period last year. Tax revenues contributed the most to this growth, rising by 5.4 billion BGN, a 16.7% increase, Petkova said. 

VAT revenues specifically grew by 22%, amounting to 1.6 billion BGN more than in the same period in 2024. Some delays in VAT collection were reported at the Customs Agency, but measures implemented by the National Revenue Agency and Customs are already showing results.

Expenditures reached 50.4 billion BGN, up 17.7%, driven in part by obligations to the Regional Ministry and Road Infrastructure Agency (over 400 million BGN) and 276 million BGN paid to the Ministry of Transport.
The budget deficit at the end of July stood at 4.2 billion BGN, or 1.96% of projected GDP.

The Finance Minister emphasized that recent years’ high spending created the need for ambitious revenue targets. She also discussed the Public Investment Program (PIP) and the third payment under the Recovery and Resilience Plan, which are crucial for meeting revenue goals.

Petkova highlighted the Bulgarian Development Bank’s role in financing public investments, noting that its operations are transparent and regulated, and clarified that no limit on lending to legal entities has been removed.

Finally, she reiterated that public finance sustainability, deficit and debt targets, and Bulgaria’s strategic aim of joining the eurozone remain top priorities.

*** 

24 Chasa runs a story about the upcoming minimum wage increase.

From January 1, 2026, Bulgaria’s minimum wage will rise from BGN 1,077 to BGN 1,213 (EUR 620), slightly increasing purchasing power. With the new wage, workers could afford the “small consumer basket” 10.9 times instead of 9.7, assuming prices remain stable, according to economists from the Confederation of Independent Trade Unions in Bulgaria. 

Key comparisons:
• Bread: 461 loaves (Bulgaria) vs. 487 (Romania), 1,207 (Germany), 1,321 (Netherlands). 
• Chicken: 151 kg (Bulgaria) vs. 230 kg (Romania), 393 kg (Germany), 259 kg (Netherlands). 

Economists warn that the increase still falls short of covering the BGN 1,526 (EUR 780) cost of living for a single person. They call for regular adjustments tied to real purchasing power to bring Bulgaria closer to EU standards. 

WATER SHORTAGE – PLEVEN 

Mediapool leads with a story about the water shortage in the northern city of Pleven and the leaks along the pipeline that is fed with water from the Cherni Osam River.

Hundreds of residents from the villages of Cherni Osam and Oreshak (North Bulgaria) gathered on Sunday evening to protest the government’s plans to build the Cherni Osam dam. Locals say the pipeline supplying water to Pleven is so compromised that it leaks into their yards.

The government recently revived the project, which could consume over BGN 1 billion in state funds, despite decades of inaction on replacing the water network, which suffers losses exceeding 80%. Construction, if it begins, could extend until at least 2040.

Residents, supported by much of the population in the nearby town of Troyan, strongly oppose the dam, citing threats to tourism and local nature. At a meeting in Oreshak, mayors Marin Sirakov and Maya Naydenova joined locals in calling for alternative solutions to water shortages for the nearby cities of Lovech and Pleven. Former Cherni Osam mayor Petrana Volova recalled similar protests over 30 years ago, when locals formed human chains to resist communist-era dam plans.

Residents, including Izabela Plachkova, highlighted ongoing water leaks from damaged pipelines in their yards and stressed the unfairness of their yards flooded, while people in Lovech and Pleven face shortages. An online petition against the dam is being prepared.

The planned 100-metre dam would be located about 2 km from the villages, near the “Steneto” nature reserve. Cherni Osam, a historic village with a natural history museum and national school for mountain rescuers, would see tourism heavily disrupted by construction and altered landscapes. The government has not communicated directly with locals, but the threat of displacement is considered real. 

CRIME 

Bulgarian National Radio reports that Greek police have dismantled a cocaine trafficking network involving Bulgarian-registered trucks and drivers.
Two Greek nationals have been arrested in connection with the operation, which transported cocaine from Spain to Greece using trucks with hidden compartments. The trucks are owned by Greek companies operating in Bulgaria, and both Greek and Bulgarian drivers were involved, though no drivers have been arrested so far.
Over 300 kilograms of cocaine have been seized in Greece and Germany in recent days, and authorities estimate the network’s revenue exceeds EUR 5 million. The investigation is ongoing.