site.btaMedia Review: September 24

POLITICS

Radio Free Europe’s Bulgarian website and Mediapool.bg report that the Renew Europe group in the European Parliament, which includes Continue the Change (CC), has called on the European Commission to halt payments to Bulgaria under the Recovery and Resilience Plan due to the ongoing detention of Varna Mayor Blagomir Kotsev. On Tuesday, the Sofia Appellate Court upheld the lower court’s ruling and kept Kotsev in custody. He faces charges in a corruption investigation and for participation in an organized crime group, and the court’s decision is final.

In a letter to the European Commission, Renew Europe leader Valerie Hayer accused the Bulgarian government of weaponizing the country’s independent anti-corruption body against its political opponents. She described Kotsev’s imprisonment as the most alarming example of what she called “institutional perversion” and emphasized that the democratically elected mayor of Varna was being targeted for political reasons.

Kotsev, who was elected mayor with the support of Continue the Change – Democratic Bulgaria, was arrested in mid-July. The court has maintained its detention, arguing that, as mayor, he could influence witnesses who have not yet testified.

The European Commission is currently evaluating whether to release EUR 653 million to Bulgaria as the third tranche of the Recovery Plan. So far, Bulgaria has received EUR 1.37 billion out of a total EUR 6 billion.

According to Hayer, Bulgaria’s request for a new tranche under the Recovery and Resilience Plan cannot be justified because the country has failed to create the independent anti-corruption commission it pledged. She claimed that the commission had been turned into a political tool and that Kotsev, along with three other local officials, were effectively being treated as political prisoners. She added that the Bulgarian Anti-Corruption Commission acts as a means of repression, obstructs the European Public Prosecutor’s Office, and is linked to networks surrounding Movement for Rights and Freedoms – New Beginning leader Delyan Peevski. Hayer also noted that the Prosecutor General remains in office despite an expired mandate, which she regarded as a direct violation of the rules under the Recovery and Resilience Plan.

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In an interview on bTV’s morning talk show, former chair of the Council for Electronic Media (CEM) and Editor-in-Chief of BTA’s LIK magazine Georgi Lozanov, together with political PR expert Nidal Algafari, discussed the Sofia Appelate Court’s decision to uphold the measure imposed by the lower court and kept Varna Mayor Blagomir Kotsev in custody. The conversation also touched on the political clashes between Continue the Change – Democratic Bulgaria (CC-DB) and Movement for Rights and Freedoms – New Beginning (MRF – New Beginning) surrounding Kotsev’s arrest, as well as the rhetoric used by Bulgarian politicians. The Sofia City Prosecutor’s Office has been asked to investigate MRF–New Beginning MP Delyan Peevski for hooliganism “marked by exceptional cynicism and audacity,” in connection with his behaviour during the standoff in which CC-DB representatives blocked the entrances to Parliament’s parking lot with their cars. The blockade was intended to prevent GERB leader Boyko Borissov and Peevski from entering and was staged in support of Kotsev and Sofia Deputy Mayor Nikola Barbutov, both facing bribery charges.

Lozanov commented that Peevski’s tone sounded threatening. According to him, Peevski’s statement “You’re finished!” amounted to a direct threat against the opposition of CC. Lozanov argued that Peevski’s behaviour, consistent throughout the year, is part of an attempt to erase CC from Bulgaria’s political map. He added that CC-DB, and especially CC, have been subjected to disproportionate attacks from all sides, far beyond their actual weight in Parliament and Bulgaria’s political life. “CC-DB have already lost two key leaders. Now we see mounting pressure aimed at eliminating this opposition, which in fact remains the only genuine opposition force,” he explained.

Algafari, by contrast, defended Peevski, suggesting that his harsh words were an emotional outburst provoked by insults directed at him, as he was called “fat pig”, insults that, according to Algafari, went largely unnoticed by the wider public.

ECONOMY

In an interview with Bulgarian National Radio (BNR), financial expert and economist Rumen Galabinov noted that when Bulgaria adopts the euro in early 2026, it will be the only country in the eurozone with a flat tax.

His comment followed the conclusions and recommendations of the International Monetary Fund (IMF) mission that were presented at a press conference in Sofia on Tuesday by the head of the mission in Bulgaria, Fabian Bornhorst. In order to fully realize the benefits of Bulgaria's membership in the euro area, durably raise living standards, and avoid macro-financial imbalances, policymakers need to strengthen fiscal discipline, manage euro transition risks, and accelerate reforms, some of the conclusions of the IMF mission say.

Among the IMF’s recommendations is a shift from a flat tax to a progressive one, with the argument that Bulgaria will face increasing difficulties in offsetting rising expenses.

“The models of progressive taxation are very diverse. The most successful model is a hybrid one – with a non-taxable minimum at the bottom, a progressive scale above a certain threshold, and then a ceiling at the top that applies a flat, proportional rate regardless of how much higher the income is. Such a hybrid model could work well for Bulgaria,” Galabinov explained.

The economist also addressed the recent increase in prices in Bulgaria: “The rise in prices here is essentially a six-month anticipation of events, ahead of what happened in Croatia. While in Croatia some prices increased after the euro was introduced and came into effect, in Bulgaria the process began in advance, already at the start of this summer. Over the past three to four months, we’ve been seeing how the prices of certain goods, particularly most consumer staples, have gradually gone up. Why? For several reasons. One is that Bulgaria is one of the very few EU countries, and, once we join the eurozone, it will be the only one, where VAT on food and medicines continues to be levied at the highest rate. In all other eurozone countries, VAT on food and medicines is at least half the general rate. This is something we need to seriously reconsider,” Galabinov warned.

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In an interview with Bulgarian National Television, Lyubomir Karimanski, member of the Governing Council of the Bulgarian National Bank (BNB), commented on the International Monetary Fund’s recommendation that Bulgaria should strengthen its fiscal discipline. “Everyone is concerned about the government’s spending policy, particularly the rapid pace at which expenditures in the public sector are rising,” he said. “At the same time, Bulgaria is unable to issue debt at levels comparable to other European countries such as Greece or Croatia, which have much higher debt and deficit. What is really worrying is how fast public sector costs are expanding. Alongside rising salaries, overall maintenance and operational costs have grown more than three and a half times over the past decade — perhaps even more. And through budgetary mechanisms we have no effective brakes to prevent these public expenditures from growing in a pro-cyclical way,” he explained.

Karimanski also addressed the debate on pensions, stressing that increasing contributions requires a comprehensive reform of the system. “If we attempt piecemeal changes, the transfers from the state budget to the pension and social systems will remain just as large as they are today. The first priority must be to restrain the spending side,” he explained.

On taxation, Karimanski argued that Bulgaria’s flat tax system is still effective. “The philosophy of the flat tax is not exhausted. It continues to work and there is more to be drawn from it. What matters is ensuring that taxes are adjusted where they fail to function effectively. We need a comprehensive review of the tax framework, including whether greater centralization or decentralization of the system is necessary, and to what extent,” he further said.

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The Trud tabloid daily covers the conclusions and recommendations of the IMF mission with a frontpage article titled “IMF Calls for Progressive Taxation, Higher Social Security Contributions”.

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In a lead article, the 24 Chasa daily outlines that IMF sees three risks for Bulgaria: rising wages, the lending boom, and the delayed pension reform.

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Ahead of the EU Technological Autonomy: Strategies, Funding, and Implementation international conference in Sofia on September 24, Yordan Bozhilov, founder and president of the Sofia Security Forum, one of the organizers of the event, warned in a BNR interview that Europe is lagging in security, economy, energy, and technology. “Europe is dependent and unable to take independent decisions. We lack clear answers, and both Europe and Bulgaria must urgently define how to respond to these challenges,” Bozhilov said. Citing former European Central Bank president Mario Draghi, he stressed that unless Europe reforms its model and invests in critical technologies, it will fall irreversibly behind, undermining its social model.

Currently, only three of the world’s 50 largest tech companies are European, turning the continent into a consumer market rather than an innovation leader, Bozhilov noted. He argued that Europe is acting too slowly and urged Bulgaria to empower small and medium-sized enterprises, particularly start-ups developing emerging technologies such as drones, anti-drone systems, AI, and robotics.

Bozhilov also emphasized the urgent need for effective drone-defence systems, warning that cheap and widely accessible drones pose risks not only from state actors but also from terrorists and malicious individuals. “Only through unity can such challenges be met,” he concluded.

MEDIA

Citing the Association of European Journalists, online media outlet Dnevnik.bg reports that between September 24 and 26, a coalition of international organizations working in the field of press freedom will carry out a fact-finding mission on the state of the media environment in Bulgaria. The delegation represents the Council of Europe’s Platform for the Safety of Journalists and the Media Freedom Rapid Response (MFRR) mechanism. Its purpose is to take the pulse of media freedom in the country, with topics including the safety of journalists, media regulation, public broadcasting, media pluralism, SLAPP lawsuits, media ownership, and the reform process required under the European Media Freedom Act (EMFA). The mission’s initial findings and assessments will be presented at a news conference on September 26.

WATER SUPPLY CRISIS 

Commenting on Bulgaria’s water supply crisis in a BNR interview, former environment minister Julian Popov argued that the newly established National Water Board will not resolve the problem. He said the main issue is that the board is staffed with political appointees. “Water management needs to be taken out of this highly political level, which is little more than populism. There’s nothing inherently wrong with that, but it will not deliver meaningful results,” Popov warned.

He also highlighted a lack of expertise in the sector: “Many water and sewerage companies are not managed competently. Modern technologies are not applied, nor are effective financial and investment approaches. Some utilities are stuck in the past, and with their outdated infrastructure crumbling, the situation worsens. They simply need to do their job,” he explained.

Popov further noted that Bulgaria is relatively poor in water resources and fails to make use of the Danube. “Bulgaria has around 3,000 cubic meters of water per capita. The threshold for so-called ‘water stress’ is around 1,700, so we are above that, but far below countries such as Croatia, Norway, Sweden, and Finland, which are much richer in water resources. We cannot afford to waste water and must manage it properly,” he stressed.

ROAD TRAFFIC

In an interview with Nova TV, National Toll Administration Director Oleg Asenov said that the 1,200 cameras operated by the toll administration across the country are undergoing tests to measure drivers’ instantaneous speed. Since September 7, 2025, the toll cameras have already been used to impose fines based on average speed violations recorded on the roads. Asenov added that in October, French capital Paris will adopt a new standard for measuring instantaneous speed through so-called frame-by-frame recording, which will pave the way for Bulgaria to introduce this form of speed enforcement. He also noted that work is underway on a mechanism to fine transit drivers before they leave Bulgaria. Under the plan, sanctions will be imposed at border checkpoints, with the system expected to become operational around November 1, 2025.