https://www.bta.bg/en/news/economy/rss Thu, 04 Jun 2026 03:47:09 +0300 en hourly 1 https://www.bta.bg/en/news/balkans/1139922-lik-s-romanian-version-showcases-bulgaria-s-spa-tourism-potential https://www.bta.bg/en/news/balkans/1139922-lik-s-romanian-version-showcases-bulgaria-s-spa-tourism-potential Wed, 03 Jun 2026 20:53:00 +0300 The Bulgarian News Agency (BTA) presented Wednesday the first ever Romanian-language version of its LIK magazine titled BG SPA – Health Through Water at the Bookfest International Book Fair in Bucharest, where Bulgaria is this year's guest of honour. The special issue is dedicated to Bulgaria's spa, wellness and medical spa sector and is also available in Bulgarian and English language versions. Following are highlights of the statements made at the launch: BTA Director General Kiril Valchev: Today BTA is speaking Romanian. This is the first issue of LIK magazine published in Romanian. The publication features information on 128 certified spa, wellness and medical spa centres across Bulgaria and was produced in connection with HEALTHXCHANGE 2026, a European forum on sustainable health tourism. The issue aims to showcase Bulgaria's strengths as a health tourism destination, highlighting the country's more than 550 thermal and mineral water occurrences, over 1,600 mineral springs, climate therapy destinations and Black Sea resources suitable for thalassotherapy tourism. BTA is planning to begin publishing news in Romanian on its website and social media platforms. BTA's Economic News Directorate head Tsvetomira Marinova: The Romanian version provides an occasion to discuss the growing importance of tourism contacts between Bulgaria and Romania. According to figures released by Bulgaria's Ministry of Tourism, Romanian visitors logged nearly 1 million check-ins at accommodation establishments in Bulgaria in 2025, up 8.5% from 2024 and more than 50% compared with the pre-pandemic 2019. Romania is one of Bulgaria's most important tourism markets and discussions are underway on joint tourism products and itineraries intended to attract visitors from more distant markets. BTA's Correspondents Department Deputy Head Reni Nikiforova: The publication's findings show that Romanian tourists are increasingly regarding Bulgaria as a year-round destination rather than limiting their visits to summer seaside holidays and winter ski trips. According to the data presented, Romanian visitors are venturing beyond traditional resorts and border regions, with growing interest in spa destinations such as Velingrad, Hisarya, Pavel Banya and Sandanski, as well as cultural and mountain tourism. Bulgaria tends to attract ever longer stays from Romanian visitors, while Bulgarian tourism businesses are adapting their offerings to meet their preferences. Romanian AGERPRES National News Agency Director General Claudia Nicolae: BTA's Romanian-language version of the LIK magazine on spa tourism is an example that Romania's national news agency could follow in promoting its own tourism sector. The partnership between BTA and AGERPRES includes a shared responsibility to promote their respective countries, particularly among neighbouring audiences. AGERPRES could undertake a similar initiative, highlighting what Romania has to offer Bulgarian tourists. Bulgarian Ambassador to Romania Radko Vlaykov: Over the past 35 years Bulgarians and Romanians have come to better understand each other, with tourism and cultural exchange playing a key role in the process. Bulgaria is considering appointing a permanent tourism representative in Bucharest. Efforts are being made not only to attract more Romanian visitors to Bulgaria but also to encourage more Bulgarians to travel to Romania. The event organized with the participation of BTA and AGERPRES is an example of how tourism and cultural cooperation contribute to bilateral relations. Congratulations to BTA Director General Kiril Valchev and his team on the magazine. Balkans Lyubomir Gigov Nadezhda Filipova BTA special correspondent Martin Penev https://www.bta.bg/en/news/bulgaria/1139977-hemus-2026-international-defence-exhibition-kicks-off-in-plovdiv https://www.bta.bg/en/news/bulgaria/1139977-hemus-2026-international-defence-exhibition-kicks-off-in-plovdiv Wed, 03 Jun 2026 20:40:00 +0300 The Hemus 2026 International Defence Equipment and Services Exhibition opened on the premises of the International Fair of Plovdiv on Wednesday. The four-day event has attracted 197 Bulgarian and international exhibitors. It is proceeding under the auspices of the Ministry of Defence, the Ministry of Economy, Investment and Industry, and the Ministry of Innovation and Digital Transformation. Its main organizer is the Hemus 95 Foundation. The opening ceremony was attended by President Iliana Iotova, Defence Minister Dimitar Stoyanov, Innovation and Digital Transformation Minister Ivan Vasilev, Plovdiv Regional Governor Georgi Yanev and Plovdiv Mayor Kostadin Dimitrov, among others. President Iliana Iotova said at the opening that modern defence capabilities need new inventions, achievements at the highest technological levels, as well as security and sustainability of production. This, she said, requires a rethink of national policies in the sector, as the war in Ukraine in particular has exposed several serious deficits. These include insufficient production, irregular supplies and a lack of coordination among EU Member States. "The events of the past few years - the war in Ukraine and the Middle East - have made all institutions rethink the concept of security and realize that the security of our peoples and countries can no longer be guaranteed in the old way alone: through human resources and the production of ever more equipment," Iotova said. Defence Minister Dimitar Stoyanov said in an address that the European SAFE financial mechanism allows Bulgaria to modernize its armed forces while strengthening its industrial and technological capacity. He noted that Bulgaria’s national SAFE plan, adopted in November 2025, includes nine key defence projects and has already been approved by the European Commission. The country is set to sign an agreement for investments worth EUR 3.2 billion. According to Stoyanov, exhibitors at the Hemus Defence Exchibition have increased from 157 in the previous edition to 197 now, alongside a 37% increase in Bulgarian companies and a 17% rise in international participation. Innovation and Digital Transformation Minister Ivan Vasilev added that Bulgaria has a strong foundation in defence technologies. The Economy Ministry said during the exhibition that Bulgaria has officially signed Amendment No. 1 to the Framework Agreement with US defence company Lockheed Martin under the Industrial Cooperation Programme linked to the acquisition of F-16 Block 70 fighter aircraft. The amendment envisages establishing maintenance capabilities for F-16 Block 70 aircraft in Bulgaria, including a generators repair facility. Defence Minister Stoyanov met representatives of the Bulgarian defence industry at a working breakfast. Representatives of more than 20 Bulgarian companies took part. Stoyanov said his ministry will work to ensure that more than 20% of the funding for industrial projects in the defence sector in Bulgaria goes to local companies. Bulgaria BTA team https://www.bta.bg/en/news/world/1139913-green-transition-forum-6-0-day-three https://www.bta.bg/en/news/world/1139913-green-transition-forum-6-0-day-three Wed, 03 Jun 2026 20:33:35 +0300 The Green Transition Forum 6.0 went into its third day at the Sofia Event Center on Wednesday. The sixth edition of the Forum is taking place from June 1 to 5 under the slogan "Europe's Next Chapter – Competitive. Innovative. Secure". The 2026 edition focuses on Europe's new strategic agenda and examines how the European Union can translate its long-term priorities into specific action through stronger competitiveness, faster innovation, and enhanced security in an increasingly dynamic global environment. The forum is organized by Dir.bg in cooperation with the Bulgarian-Hellenic Chamber of Commerce and Industry. BTA is a media partner of the event. Following is a summary of Wednesday's discussions: Deputy Prime Minister Atanas Pekanov said that Cohesion policy must remain at the heart of the future EU budget, and any potential reduction in its funding must be opposed. The proposal, presented by the European Commission in July 2025, envisages a budget of nearly EUR 2 trillion. The Minister said: "This is the policy that supports regions and convergence. In Bulgaria, we know of specific projects financed through cohesion policy that have generated significant added value." Deputy Finance Minister Metodi Metodiev stated that the debate about the revenue side of the EU budget should focus on the issue of fair sharing of the revenue burden. For Bulgaria, calculations based on the European Commission's proposal for a "basket" of new own resources show that the country would double its contribution, he added. Metodiev said that the proposed basket of own resources and the resulting regressivity would be extremely detrimental to the Bulgarian economy. Iliyana Tsanova, Chief Risk Officer at the European Commission's Directorate-General for Budget, said that in recent years, Europe has had to deal with increasingly serious crises, requiring it to act in new ways. Tsanova added that the EU budget is no exception, as it is one of the principal instruments for achieving European priorities. The head of the European Investment Bank Group's office in Bulgaria, Teodor Radonov, said that the next budget must enable Europe to act on an even greater scale through more investment, faster implementation and simpler instruments capable of attracting additional private capital. Tsanko Arabadzhiev, Chief Executive Officer of the Bulgarian Development Bank, noted that discussions about the European budget too often become debates about redistribution – who receives more, who benefits more, and how much each country absorbs. In his view, Europe's future will not be determined by how it allocates EUR 2 trillion, but by how ambitious it is and what it wants to build with those funds. Former Minister of Energy Traicho Traikov reported that the price of solar energy has dropped by 68%. He added, however, that this would have been the case even without European businesses making the sacrifices that they made. According to Traikov, the development of the energy grid lags behind industrial technologies in Bulgaria. Anthony Agotha, European Union Special Envoy for Climate and Environment at the European External Action Service, reported that for the fourth year in a row, bankers have made more money from green energy than from fossil fuels. USD 1 trillion is invested in fossil fuels, but USD 2 trillion is invested in renewables, he added. Bulgarian Industrial Capital Association Chair Rumen Radev pointed out that investment activity in innovation is the dominant factor driving growth. In Radev's view, the greatest obstacle facing investors is the fear of failure. French economist Philippe Aghion, laureate of the 2025 Nobel Memorial Prize in Economic Sciences, said that creative destruction and artificial intelligence can lead to sustained and inclusive growth and prosperity, provided the right policies are implemented. Aghion said that the main pillars of the AI-driven growth strategy are competition, industrial policy, education, and flexible security. He added that Bulgaria has abundant resources, human capital and world-leading scientists who are extremely dedicated to their country. World Nikolay Zabov https://www.bta.bg/en/news/economy/1139551-european-commission-recommends-excessive-deficit-procedure-for-bulgaria https://www.bta.bg/en/news/economy/1139551-european-commission-recommends-excessive-deficit-procedure-for-bulgaria Wed, 03 Jun 2026 14:16:00 +0300 The European Commission has recommended the opening of an excessive deficit procedure (EDP) for Bulgaria after concluding that the country does not comply with the European Union's deficit criterion under the bloc's fiscal rules. The recommendation was announced on Wednesday as part of the Commission's 2026 European Semester Spring Package. Following an assessment under Article 126(3) of the Treaty on the Functioning of the European Union, the Commission determined that launching an EDP for Bulgaria is warranted at this stage. The recommendation will now be considered by the Council of the European Union, which will decide whether to formally open the procedure. If approved, Bulgaria will be required to take measures aimed at bringing its public finances back into line with EU fiscal requirements. Speaking at a news conference, Valdis Dombrovskis, the EU Commissioner for Economy and Productivity, pointed out that Bulgaria's budget deficit last year was not exceeding 3% of GDP when taking into account additional defence spending under the national escape clause but this year, the excess over 3% of GDP is no longer explained by additional defence spending, which is why the report concludes that the deficit criterion is not complied with. "The Commission will continue to closely monitor fiscal developments in the coming months. We will return to our assessment of compliance for all Member States in the European Semester Autumn Package," he said. What the Commission says of Bulgaria In its 142-page country report on Bulgaria, the European Commission notes that the country's general government deficit reached 3.5% of GDP in 2025 and is expected to increase further, remaining above 4% through 2027, partly due to planned defence spending. After years of fiscal discipline, Bulgaria has been running budget deficits since 2020, while public debt has been rising at a faster pace, the report says. According to the Commission, substantial and persistent increases in public expenditure without corresponding structural financing measures have contributed to the continued deficits despite positive economic growth. Bulgaria may face difficulties in meeting the commitments set out in its medium-term fiscal-structural plan unless further fiscal consolidation efforts are undertaken. The country has committed to achieving a structural primary deficit of 1.8% of GDP by 2028, implying an annual adjustment of 0.16 percentage points. To safeguard the sustainability of public finances, the Commission says there is scope to improve the tax system, combat the shadow economy and enhance the overall fairness of taxation. The report notes that Bulgaria's consolidated budget deficit rose to 3.5% of GDP in 2025 from 3.0% in 2024. Based on the Commission's Spring 2026 forecast, the deficit is expected to increase further to 4.1% of GDP in 2026 and 4.3% in 2027. In recent years, Bulgaria has taken steps to improve the adequacy of pensions and social benefits and has increased wages, often through automatic indexation mechanisms and rises in the minimum wage. As a result, expenditure is projected to continue growing through 2027, partly due to military equipment deliveries. Defence spending is increasing, and expenditure pressures are expected to intensify further. The Commission also warns that population ageing will have significant implications for pension systems, healthcare and long-term care in the years ahead. Five recommendations The Commission further recommends that Bulgaria take action in 2026 and 2027 in five fields.  First, it urges Bulgaria to adhere to the spending limits set under the EU fiscal framework in 2026 and 2027 in order to correct its excessive deficit, while making use of available flexibility for higher defence spending. It also calls on the country to strengthen tax collection, combat the shadow economy and improve the fairness of the tax system. Second, the Commission urges Bulgaria to ensure the continuity of reforms and investments under the Recovery and Resilience Facility and to accelerate the implementation of cohesion policy programmes. Third, the Commission recommends improving the efficiency and digitalization of public administration, strengthening anti-corruption measures, particularly in high-level cases, enhancing the independence and effectiveness of the judiciary and regulators, improving public procurement procedures, and increasing the impact of public investment in research and development. Fourth, the Commission calls for further decarbonization of the electricity sector through greater deployment of onshore and offshore wind power, modernization of electricity grids and district heating systems, improved governance of state-owned energy companies, measures to tackle energy poverty, and support for industrial decarbonization. It also recommends accelerating investments in clean urban, public and rail transport, particularly to improve connectivity in northern Bulgaria, and strengthening climate resilience, water management and waste management. Fifth, the Commission urges Bulgaria to strengthen competence-based learning, improve teacher training and the quality, inclusiveness and labour market relevance of education and training. It also calls for measures to increase employment among underrepresented groups, expand adult learning opportunities, improve access to integrated social and employment services and community-based long-term care, and make minimum income support more effective. In healthcare, the recommendations include shifting resources from hospital-based to outpatient care, reducing out-of-pocket payments and addressing shortages and regional disparities in the distribution of healthcare professionals. Reactions The Government Deputy Prime Minister and Finance Minister Galab Donev presented a package of measures to tackle the excessive deficit. At a press conference on Wednesday, he said that reducing the deficit from 7.4% to 3% is possible and depends on the measures that will be proposed in the State Budget Act and implemented by the Government. “If the public is willing to bear the measures, the first step should be a freeze on incomes, as well as the removal of all mechanisms that link wages to the national average gross salary and the minimum wage,” Donev said. He expressed the view that structural reform and consolidation of the State administration are needed, along with restrictions on public spending regardless of its source. He said that the measures the Government will take concern both the expenditure and revenue sides of the budget. “Taxes and social security contributions will not be increased,” Donev assured. He said that current tax rates would remain unchanged, but there is potential for additional revenue from the shadow economy. “There will be changes and measures aimed at increasing revenue for the Treasury. The excise duty timetable for tobacco products will be brought forward, and there will be measures targeting other sources of revenue to support expenditure-side measures, so that increased revenues can ease spending pressures. No new taxes will be introduced,” he said. He said that the current deficit of 7.4% amounts to more than EUR 8.5 billion, or almost EUR 9 billion. However, there are a further EUR 2.2 billion in unpaid liabilities that have been “hidden away in drawers”, pushing the deficit even higher. These EUR 2.2 billion include projects of the Road Infrastructure Agency and municipalities, Donev said. He announced that at the Government meeting on Wednesday a decision had been taken to set a state debt ceiling of EUR 3.8 billion.  The Opposition GERB-UDF MP and former Finance Minister Temenuzhka Petkova told reporters in the parliamentary lobby that she does not know how the deficit reached 7.4%. She was adamant that no data had been manipulated. She added that the actions that her Ministry undertook were entirely within the framework of the law and in the interest of the public. Commenting on Donev's statement that there are EUR 2.2 billion in unpaid liabilities that have been "hidden away in drawers", Petkova said that within the government, which was formed with GERB's mandate, no such liabilities exist. The budget deficit is a real problem but it can be solved, Democratic Bulgaria MP Martin Dimitrov told journalists in the parliamentary lobby. "The Government should stop panicking," Dimitrov said. He added that Democratic Bulgaria has been insisting on and proposing concrete measures. "This is what the protests were about. Today we will again submit additional concrete measures to optimize and reduce spending," the MP said. Responding to Finance Minister Donev, Continue the Change party leader Assen Vassilev noted that in 2023, when Donev was prime minister, the deficit had been announced at 6.8%. Parliament then adopted a budget with a 3% deficit, and "we finished the year at 2%". "To tell me that you cannot balance the budget at a 3% deficit means either that you do not want to or that you cannot. If you do not want to, that is clear; if you cannot, then leave and let someone else do the job," he said. The budget situation "is far from being that bad," MP Dimo ​​Drenchev from Vazrazhdane told journalists in the parliamentary lobby. "It won't happen this way, bold reforms are needed," he added. Drenchev also said that the Progressive Bulgaria coalition won the elections with the slogan "we are ready, we can", but there is nothing to suggest that they are either ready or able to do anything.  Economy Risida Dimitrova BTA correspondent Nickolay Jeliazkov https://www.bta.bg/en/news/economy/1139876-government-adopts-bill-allowing-up-to-eur-3-8-billion-in-new-state-debt https://www.bta.bg/en/news/economy/1139876-government-adopts-bill-allowing-up-to-eur-3-8-billion-in-new-state-debt Wed, 03 Jun 2026 19:09:07 +0300 At its weekly meeting on Wednesday, the Council of Ministers approved a bill amending and supplementing the so-called budget extension law (formally the Act on the Collection of Revenues and the Commitment of Expenditures in 2026 until the Passage of the 2026 State Budget Act, the 2026 Public Social Insurance Budget Act and the 2026 National Health Insurance Fund Budget Act). The bill allows for the government to assume new state debt of up to EUR 3.8 billion, equivalent to 3% of projected GDP. The bill also provides for the issuance of external sovereign debt on international capital markets through Bulgaria's medium-term debt issuance programme, as well as the assumption of short-term state debt within the overall EUR 3.8 billion ceiling, provided that such debt is repaid by the end of the current budget year. According to the government, the changes stem from the necessity to secure resources for the pre-financing of payments related to national activities and investments during the final stage of projects under the National Recovery and Resilience Plan. The amendments are also prompted by the sharp and unexpected deterioration of the geopolitical environment and rising energy prices, which have adversely affected the budget's liquidity position and increased expenditure pressures, the Government Information Service further said. Economy Konstantin Karagyozov https://www.bta.bg/en/news/economy/1139850-government-submits-proposal-to-national-assembly-to-ratify-first-amendment-to-bu https://www.bta.bg/en/news/economy/1139850-government-submits-proposal-to-national-assembly-to-ratify-first-amendment-to-bu Wed, 03 Jun 2026 19:06:14 +0300 The Council of Ministers, at its regular meeting on Wednesday, approved a proposal to the National Assembly to ratify the First Amendment and confirmation of the Financial Contribution Agreement between the European Union and the Republic of Bulgaria under the Member State compartment of the InvestEU programme. The document provides for an increase of EUR 96,964,246 in the financial contribution from the resources allocated to Bulgaria under the Recovery and Resilience Facility from EUR 150,000,000 to EUR 246,964,246, which is reflected in the total value of payments. This amendment complies with EU rules on the financial management and control of European funds, as laid down in EU regulations, as well as with the applicable national legislation governing public spending, the Government Information Service said. With the signing of the First Amendment and the confirmation of the commitments undertaken in the Agreement of November 7, 2022, under the InvestEU programme for Bulgaria, existing provisions are also amended, supplemented, and clarified, and the commitments undertaken are confirmed. Economy Risida Dimitrova https://www.bta.bg/en/news/balkans/1139871-bta-s-tsvetomira-marinova-tourism-cooperation-between-romania-and-bulgaria-grow https://www.bta.bg/en/news/balkans/1139871-bta-s-tsvetomira-marinova-tourism-cooperation-between-romania-and-bulgaria-grow Wed, 03 Jun 2026 18:50:00 +0300 At the International Book Fair Bookfest, where Bulgaria is this year's guest of honour, the Bulgarian News Agency (BTA) presented a special edition of its LIK magazine, BG SPA – Health Through Water, published in Romanian in addition to Bulgarian and English. Addressing the forum, Tsvetomira Marinova, head of the Economic News Directorate in BTA, said the Romanian translation of the BTA publication dedicated to news from Bulgarian spa centres offers an opportunity to discuss tourism between Bulgaria and Romania in a broader context – a topic that remains highly relevant, as cooperation between the two countries in this area is marked by significant growth, strategic partnership initiatives, and security measures. Marinova said that Romania is establishing itself as one of the most important, robust, and strategically significant foreign markets for Bulgarian tourism. This interest is sustained and stems from the countries' geographical proximity, the year-round travel activity of Romanian tourists, and their interest in various segments of the tourism product. She added: "According to data from the Bulgarian Ministry of Tourism, 2025 saw a record number of Romanian tourists in Bulgaria with nearly 1 million check-ins at accommodation facilities, representing an 8.5% increase compared to 2024 and a 51.2% increase compared to pre-pandemic 2019. At the start of 2026, Romania continues to maintain stable levels and remains one of [Bulgaria's] key markets." The head of the Economic News Directorate in BTA reported that Bulgaria offers security, and the government is making significant operational efforts and implementing measures to ensure and maintain its status as a safe vacation destination. She continued: "Over the years, a number of joint initiatives targeting third-party markets have been discussed, including the possibility of developing joint tourist itineraries and creating a joint regional product. The goal is for the two countries to present themselves as a single destination to attract tourists from more distant and overseas markets, such as the US, Japan, and South Korea, which are interested in the region's cultural, historical, and spa heritage." Marinova said: "Beyond the traditional Bulgarian Black Sea coast, which is popular among Romanians, Bulgarian authorities are actively promoting other regions with high potential for bilateral tourism. An example of this is Veliko Tarnovo [North Central Bulgaria], destination attracting growing interest from Romanian citizens. Hisarya [South Central Bulgaria] has seen significant growth in tourist numbers in recent years, with Romanians among the most numerous visitors to this established spa destination. Vidin [on the Danube] and the Northwest region are capitalizing on their proximity to the Danube River and the border with Romania to develop river, cultural, spa, and rural tourism. Romanian tourists are also reported to be key visitors to Belogradchik [Northwestern Bulgaria]." She reported that, according to Bulgaria's Ministry of Economy, economic relations between Bulgaria and Romania are undergoing a period of exceptionally active development and have been elevated to the level of a strategic partnership. Romania is among Bulgaria's main and leading foreign economic partners, with a steady trend toward strengthening trade and investment ties. Balkans Nikolay Zabov BTA correspondent Martin Penev https://www.bta.bg/en/news/balkans/1139883-bta-s-reni-nikiforova-romanians-are-increasingly-viewing-bulgaria-as-year-round https://www.bta.bg/en/news/balkans/1139883-bta-s-reni-nikiforova-romanians-are-increasingly-viewing-bulgaria-as-year-round Wed, 03 Jun 2026 18:35:00 +0300 Romanian tourists are increasingly visiting Bulgaria year-round rather than limiting their trips to summer seaside holidays or winter ski vacations, according to data presented by the Bulgarian News Agency (BTA) at the Bookfest international book fair in Bucharest Wednesday. Speaking at the presentation of the Romanian-language version of BTA's special publication titled BG SPA – Health Through Water, BTA Deputy Head of the Correspondents Department Reni Nikiforova said Romanian tourists made nearly 1 million registrations at accommodation establishments in Bulgaria in 2025, up 8.5% from the previous year. Citing data from the National Statistical Institute, she said the figures indicate that Romanians are increasingly viewing Bulgaria as a year-round destination. Nikiforova said Romanian visitors are travelling well beyond Bulgaria's border regions and traditional Black Sea resorts. In addition to destinations such as Varna, Albena, Golden Sands and Sts Constantine and Helena, they are increasingly visiting the southern coast, including Sunny Beach, Pomorie and Nessebar, as well as mountain and spa destinations such as Pamporovo, Bansko, Razlog and Sandanski. According to the publication, interest is also growing in year-round spa and wellness resorts. Destinations such as Velingrad, Hisarya and Pavel Banya are attracting Romanian visitors with their mineral water resources, while Tryavna and Starosel are also emerging as popular choices. Nikiforova noted that border regions including Vidin, Ruse and Silistra continue to see heavy traffic during Romanian holiday weekends. However, she said the overall trend suggests that Bulgaria is increasingly becoming a destination for longer stays rather than serving primarily as a weekend getaway or transit country. She added that Bulgarian hoteliers are adapting their products and services to better meet the preferences of Romanian tourists. Balkans BTA special correspondent Martin Penev https://www.bta.bg/en/news/economy/1139838-bulgaria-signs-amendment-to-lockheed-martin-industrial-cooperation-agreement-on- https://www.bta.bg/en/news/economy/1139838-bulgaria-signs-amendment-to-lockheed-martin-industrial-cooperation-agreement-on- Wed, 03 Jun 2026 18:34:00 +0300 Bulgaria has officially signed Amendment No. 1 to the Framework Agreement with US defence company Lockheed Martin under the Industrial Cooperation Programme linked to the acquisition of F-16 Block 70 fighter aircraft, the Ministry of Economy, Investments and Industry said during the HEMUS 2026 international defence exhibition in Plovdiv. The document was signed on behalf of Bulgaria by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Poulev and Minister of Innovation and Digital Transformation Ivan Vasilev. Robert Wilkerson, Director of Global Pursuits Europe for Lockheed Martin, signed on behalf of the US company. The amendment builds on the results achieved so far under the programme and creates conditions for developing new capabilities for the maintenance of F-16 Block 70 aircraft in Bulgaria. The specific project envisages establishing a facility capable of repairing F-16 Block 70 generators, a high-tech activity for which comparable capabilities currently exist in only a limited number of European Union member states. Quoted by his ministry's press service at the signing ceremony, Poulev said that attracting investment had been the central message during official visits and delegations conducted jointly with Prime Minister Rumen Radev in Germany, France and Brussels. He added that, alongside efforts to attract new investment, protecting Bulgaria's national interest through the promotion and prioritization of industrial cooperation had been a key focus of international discussions. Poulev further said that Bulgaria was actively developing relations not only with its traditional partners in the European Union but also with its strategic partners in the United States. He described the continuation of dialogue and industrial cooperation with one of the defence industryr's leading global companies as particularly important. The ministry reiterated that the amendment would expand the programme's existing achievements and support the development of maintenance capabilities for F-16 Block 70 aircraft in Bulgaria, including the planned generator repair facility. At the end of May, Bulgaria's government approved amendments to a project under the Framework Agreement between Bulgaria and Lockheed Martin Global Inc. concerning the F-16 Block 70 Industrial Cooperation Programme, the government's press service recalled. Following a National Assembly decision of May 8, 2026, the Ministry of Economy and Industry was transformed into the Ministry of Economy, Investments and Industry, while the Ministry of Innovation and Growth was merged with the Ministry of Electronic Governance to form the Ministry of Innovation and Digital Transformation. In light of these structural changes, the government approved amendments to Council of Ministers Decision No. 349 of 2026, authorizing the Deputy Prime Minister and Minister of Economy, Investments and Industry, together with the Minister of Innovation and Digital Transformation, to sign Amendment No. 1 to the Framework Agreement between Bulgaria's Ministry of Economy and Lockheed Martin Global Inc. regarding the F-16 Block 70 Industrial Cooperation Programme. Economy Konstantin Karagyozov https://www.bta.bg/en/news/world/1139815-eu-commissioners-roswall-zaharieva-to-participate-in-green-transition-forum-in- https://www.bta.bg/en/news/world/1139815-eu-commissioners-roswall-zaharieva-to-participate-in-green-transition-forum-in- Wed, 03 Jun 2026 18:10:12 +0300 European Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall and European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva will visit Bulgaria, the European Commission said on Wednesday. On June 4, Commissioner Roswall will take part in a high-level session of the Green Transition Forum in Sofia titled "Circular Industry, Climate Action and Water Resilience – Driving Europe's Competitive Transition". She will also meet with Environment and Water Minister Rositsa Karamfilova – Blagova. Following their talks, the two will give a short media briefing. Roswall's programme also includes participation in the inaugural Sofia Climate Festival, part of the official programme of Bulgaria's Presidency of the EU Strategy for the Danube Region. Ahead of her first official visit to Bulgaria since taking office, Commissioner Roswall said she is looking forward to visit Bulgaria and engage with institutions, partners and stakeholders on how to strengthen Europe's resilience together. Bulgaria has a key role to play in achieving water resilience, accelerating the transition to a circular economy and maintaining high environmental protection standards, she emphasized. On June 5, Commissioner Zaharieva will participate in a high-level Green Transition Forum session entitled "Financing the Future: How Central and Eastern Europe Can Maximize the Benefits of European Innovation Programmes". She will also meet with Innovation and Digital Transformation Minister Ivan Vasilev. Zaharieva is furthermore scheduled to hold a Youth Policy Dialogue on EU policies. The discussion will contribute to the EU Startup and Scaleup Strategy, which aims to make Europe the best place to launch and grow innovative businesses. World Konstantin Karagyozov https://www.bta.bg/en/news/bulgaria/1139673-budget-situation-far-from-being-so-bad-bold-reforms-needed-says-vazrazhdane- https://www.bta.bg/en/news/bulgaria/1139673-budget-situation-far-from-being-so-bad-bold-reforms-needed-says-vazrazhdane- Wed, 03 Jun 2026 16:28:00 +0300 The budget situation "is far from being that bad," MP Dimo ​​Drenchev from Vazrazhdane told journalists in Parliament on Wednesday. "It won't happen this way, bold reforms are needed," he added. Drenchev also said that the Progressive Bulgaria coalition won the elections with the slogan "we are ready, we can", but there is nothing to suggest that they are either ready or able to do anything. "It's been 50 days since the elections and there have been no regular committees, and yesterday the Water Act was considered without representatives of the Energy and Water Regulatory Commission present", the MP added. According to Drenchev, the entire population of Bulgaria will become victims if those in power do not take matters into their own hands and begin to implement the reforms that are needed and for which they have a mandate. The MP also stated that he was against increases in defence spending. "The promise that the European Union would spend 5% of its GDP on defence is insane, the MP said. Earlier on Wednesday, Finance Minister Galab Donev said during a briefing at the Council of Ministers that reducing the deficit from 7.4% to 3% is possible and depends on the measures that will be proposed in the State Budget Act and that the government will take. Bulgaria Yoanna Hristova Atanas Malakchiev Petra Kurteva https://www.bta.bg/en/news/bulgaria/1139667-illegal-construction-and-deforestation-cases-remain-under-scrutiny-in-varna-area https://www.bta.bg/en/news/bulgaria/1139667-illegal-construction-and-deforestation-cases-remain-under-scrutiny-in-varna-area Wed, 03 Jun 2026 16:05:22 +0300 The Directorate for National Construction Control and the Geodesy, Cartography and Cadastre Agency carried out an inspection at the Varna Municipality, Regional Development and Public Works Minister Ivan Shishkov said on Wednesday in Varna. The inspection is linked to illegal construction in the Baba Alino area near Varna, where suspected irregularities in construction documentation and certification procedures are being examined. Shishkov pointed out that the inspection aimed to review documents related to the case, including suspected falsified certificates of tolerance, and to determine whether the issues are isolated or part of a broader pattern. He also stated that the responsibility for demolition decisions regarding any illegal construction lies with Varna Mayor Blagomir Kotsev, and that further administrative and legal steps will follow depending on the findings. Separately, Varna municipal councillors from GERB raised allegations of large-scale deforestation involving KYB Corporation. They claim that a hectare of land was cleared of trees between early 2024 and 2025 without a formal order for tree removal or a required compensatory reforestation programme, as required under local environmental regulations. They further argue that construction may be legally permitted, but cannot be put into operation until replanting obligations are fulfilled, and announced they will submit reports to the relevant authorities for review. Shishkov responded that the allegations concerning KYB Corporation should not be lumped together with the Baba Alino case, stressing that they involve separate procedures and circumstances. He also said that responsibility for the broader situation is shared across political actors, describing the period since 2023 as one of systemic negligence, and noted that accountability will be pursued where violations are confirmed. He confirmed that the head of the Regional Geodesy, Cartography and Cadastre office in Varna is set to be dismissed and referred to prosecutors over alleged illegal entries in cadastral records and the issuance of documents used in property transactions. He also pointed to possible negligence by the local water and sewerage utility in Varna, adding that investigations there are ongoing. In addition, Shishkov said that probes continue into alleged irregular payments related to the Hemus Motorway project as well, with several cases being prepared for submission to law enforcement authorities. Bulgaria BTA correspondent Mila Edreva Filip Pavlov https://www.bta.bg/en/news/economy/1139642-foreign-minister-bulgaria-has-completed-oecd-reviews-in-18-of-25-working-bodies https://www.bta.bg/en/news/economy/1139642-foreign-minister-bulgaria-has-completed-oecd-reviews-in-18-of-25-working-bodies Wed, 03 Jun 2026 15:35:36 +0300 Bulgaria has completed accession reviews in 18 of the 25 working bodies of the Organisation for Economic Co-operation and Development (OECD), Foreign Minister Velislava Petrova said in a written reply to a question from Democratic Bulgaria MP Stela Nikolova regarding the country's preparedness for OECD membership. The reply was published on the National Assembly's website. According to Petrova, the number of completed accession reviews is expected to reach 19 very soon following the conclusion of an ongoing internal written procedure in another OECD committee. To successfully complete the current technical phase of the accession process, Bulgaria still needs to finalize reviews in several areas that require legislative action to implement key OECD recommendations, Petrova explained. Among the recommendations are measures to ensure more transparent and effective governance and oversight of state-owned enterprises; the introduction of a deposit-return system for beverage packaging waste; and steps to guarantee the independence and effectiveness of key national anti-corruption institutions, as well as to strengthen the rules governing the financing of political election campaigns. Petrova stressed that the National Assembly has a key role to play in ensuring the successful completion of Bulgaria's OECD accession process in 2026. "The receipt of positive assessments in the remaining review areas depends to a decisive extent on the timely adoption of legislative amendments implementing the recommendations addressed to Bulgaria," she said. This would make it possible to complete the reviews in all remaining OECD committees during 2026, the Foreign Minister added. The OECD was established in 1961 to promote policies aimed at sustainable economic growth, higher living standards and financial stability. It succeeded the Organisation for European Economic Co-operation, which had been created to administer American and Canadian financial assistance under the Marshall Plan for Europe's post-World War II reconstruction. Economy Yoanna Vodenova Nikolay Trifonov https://www.bta.bg/en/news/bulgaria/1139593-assen-vassilev-calls-new-pension-rules-outrageous-and-unconstitutional- https://www.bta.bg/en/news/bulgaria/1139593-assen-vassilev-calls-new-pension-rules-outrageous-and-unconstitutional- Wed, 03 Jun 2026 15:25:40 +0300 Continue the Change party leader Assen Vassilev described as "outrageous and unconstitutional" the discontinuation of the COVID supplement for pensions granted after July 1, approved by the National Assembly on Wednesday along with other amendments to the so-called budget extension law for 2026. Vassilev commented: "If your pension decision is issued on June 30, with the same length of service, average salary and conditions, you will receive EUR 30 more than you would if it were issued on July 1." The former finance minister noted that 110,000 people are expected to retire this year, and 55,000 of them will do so in the second half of the year. "Each of them has the right to file a complaint with the Commission for Protection against Discrimination [CPD] and recover the EUR 30. Apart from creating red tape for pensioners, the law has achieved absolutely nothing," Vassilev said. He promised that Continue the Change will provide legal assistance to ensure that all these complaints reach the CPD. He urged citizens: "If you are awarded a lower pension after July 1, go directly to a Continue the Change office and we will help you submit your complaint to the commission and receive your EUR 30 per month." Responding to Deputy Prime Minister and Finance Minister Galab Donev, who said that the government deficit exceeds 7%, Vassilev noted that in 2023, when Donev was prime minister, the deficit had been announced at 6.8%. Parliament then adopted a budget with a 3% deficit, and "we finished the year at 2%". "Galab Donev is obviously only capable of so much," Vassilev said. As was seen in 2023, such a high deficit reflects excessively inflated spending, he added. Vassilev also said that Bulgaria is currently experiencing inflation and revenue growth, which is expected to amount to around EUR 7 billion in 2026. "To tell me that you cannot balance the budget at a 3% deficit means either that you do not want to or that you cannot. If you do not want to, that is clear; if you cannot, then leave and let someone else do the job," he said. Bulgaria Valentin Evstatiev Petra Kurteva Yoana Hristova https://www.bta.bg/en/news/economy/1139552--if-the-public-is-willing-to-bear-the-measures-finance-minister-shares-plan-to https://www.bta.bg/en/news/economy/1139552--if-the-public-is-willing-to-bear-the-measures-finance-minister-shares-plan-to Wed, 03 Jun 2026 14:52:00 +0300 Finance Minister and Deputy Prime Minister Galab Donev presented a package of measures to tackle the excessive deficit. At a press conference on Wednesday, he said that reducing the deficit from 7.4% to 3% is possible and depends on the measures that will be proposed in the State Budget Act and implemented by the Government. “If the public is willing to bear the measures, the first step should be a freeze on incomes, as well as the removal of all mechanisms that link wages to the national average gross salary and the minimum wage,” Donev said. He expressed the view that structural reform and consolidation of the State administration are needed, along with restrictions on public spending regardless of its source. Earlier on Wednesday, the European Commission announced that it has recommended the opening of an excessive deficit procedure (EDP) for Bulgaria after concluding that the country does not comply with the European Union's deficit criterion under the bloc's fiscal rules. “We are not touching delegated budgets - funding for culture, education, healthcare and psychiatric hospitals,” the Deputy Prime Minister further stressed. He said that the measures the Government will take concern both the expenditure and revenue sides of the budget. “Taxes and social security contributions will not be increased,” Donev assured. He said that current tax rates would remain unchanged, but there is potential for additional revenue from the shadow economy. “There will be changes and measures aimed at increasing revenue for the Treasury. The excise duty timetable for tobacco products will be brought forward, and there will be measures targeting other sources of revenue to support expenditure-side measures, so that increased revenues can ease spending pressures. No new taxes will be introduced,” he said. Donev announced that the 3% deficit reported over the past five years was the result of payments worth millions and billions being postponed and rolled over into the following year. He said that the current deficit of 7.4% amounts to more than EUR 8.5 billion, or almost EUR 9 billion. However, there are a further EUR 2.2 billion in unpaid liabilities that have been “hidden away in drawers”, pushing the deficit even higher. These EUR 2.2 billion include projects of the Road Infrastructure Agency and municipalities, Donev said. He specified that by April 30, the caretaker government should have submitted to the European Commission the Annual Progress Report under the National Medium-Term Fiscal-Structural Plan for 2025-2028, but failed to do so. “Therefore, everything that the European Commission presents in today’s report is based on 2025 data, without including the unforeseen expenditures and the costs expected to be submitted for payment in 2026,” the Deputy Prime Minister said, explaining that the European Commission does not have access to the latest data for 2026. According to him, the caretaker government did not want to carry out a consolidation of public expenditure and instead passed the “hot potato” to the regular Government. Donev announced that meetings would be held with nationally representative employers’ organizations and trade unions to agree on specific measures for consolidating public expenditure so that the excessive deficit can be reduced to acceptable fiscal parameters. He suggested that the European Commission would announce on Thursday its decision to place Bulgaria under an excessive deficit procedure, under which the country would be subject to monitoring. The Government will pursue a responsible policy aimed at keeping public expenditure within acceptable limits. According to him, the task is difficult and unpleasant, and if it had been easy, “those masters of balanced budgets within a 3% deficit would have achieved it and would not have hidden expenditures in order to postpone them over the years.” The Deputy Prime Minister also said that the state budget can currently no longer rely on dividends from state-owned companies such as the Bulgarian Energy Holding and the State Consolidation Company, from which an interim dividend amounting to EUR 560 million will not be paid into the state budget this year. Donev stressed that this demonstrates that the reported 3% budget deficit was in reality higher because of concealed and deferred spending. He announced that at the Government meeting on Wednesday a decision had been taken to set a state debt ceiling of EUR 3.8 billion. The Finance Minister recalled that in 2025 there had been a decision of the Council of Ministers that never reached Parliament. “In January there was also such a proposal submitted by MPs, which was never considered,” the Deputy Prime Minister recalled. According to him, despite knowing the true state of the budget, the caretaker government did not submit a similar request to the National Assembly. “Without this EUR 3.8 billion, we will face difficulties paying pensions, salaries and social benefits in July this year, as well as problems financing payments under the National Recovery and Resilience Plan,” Donev said. He explained that this debt is unavoidable and expressed hope that the proposal would quickly be submitted to Parliament so that a decision can be taken by June 20 and Bulgaria can access the financial markets. Economy Momchil Rusev https://www.bta.bg/en/news/economy/1139491-bulgaria-and-argentina-discuss-opportunities-for-expanding-economic-cooperation https://www.bta.bg/en/news/economy/1139491-bulgaria-and-argentina-discuss-opportunities-for-expanding-economic-cooperation Wed, 03 Jun 2026 14:37:55 +0300 During a Bulgarian-Argentine Business Forum, taking place on Wednesday at the Bulgarian Chamber of Commerce and Industry (BCCI), Vasil Todorov, Vice President of the Management Board of the BCCI, said that Argentina and Bulgaria have strong potential for expanding economic cooperation, particularly in strategic sectors such as energy, high-tech manufacturing, infrastructure, agriculture, the chemical industry, innovation, and tourism. Todorov expressed confidence that the new agreement between the EU and Mercosur, the South American trade bloc made up of Argentina, Brazil, Paraguay and Uruguay with a shared commitment to multilateralism and rules-based international trade, would also serve as a solid foundation for increasing annual trade. He also expressed hope for an improvement in trade between the two countries and, in particular, in Bulgaria's deficit in bilateral trade. Todorov said that there is a large Bulgarian diaspora in Argentina and gave examples of some successful companies, members of the industry association of manufacturers and traders of lifting equipment and cranes, that have 20 or more years of experience in exportation from Bulgaria to Argentina. He expressed hope that the members of the Argentine business delegation would discover interesting opportunities in Bulgaria to establish new business relationships with companies in the country. The BCCI Vice President said that the organization has more than 56,000 corporate members, maintains ties with industry and sectoral organizations, and has a broad regional presence. "If you direct your business interests to other parts of our country, we can provide support in those regions as well," Todorov said. Elio Del Re, President of the Association of Metallurgical Industries of Argentina (ADIMRA) and head of the business delegation, expressed hope that this would mark the beginning of cooperation between Bulgaria and Argentina and added that two trade missions are currently visiting our country - one in Sofia focused on energy, and the other in Stara Zagora at the BATA AGRO exhibition, featuring 15 companies from the agricultural machinery and technology sectors, as well as representatives of the scientific and technological community. The president of ADIMRA noted that the organization is 122 years old and comprises 60 sectoral chambers, representing more than 20,000 metallurgical companies with over 300,000 directly employed workers. He added that the metallurgical sector in Argentina accounts for 18% of industrial GDP. The President of the Argentine-Bulgarian Chamber of Commerce, Lucrecia Vanni, highlighted the opportunities for developing bilateral cooperation. "We can integrate different value chains into various sectors, such as agriculture, machinery and equipment, the IT sector, and technology," she said, adding that this is not just about the transfer of goods, but also of practices between the two countries. Economy Kristina Ivanova Ekaterina Toteva https://www.bta.bg/en/news/economy/1139520-modern-defence-capabilities-need-new-inventions-president-iotova-says https://www.bta.bg/en/news/economy/1139520-modern-defence-capabilities-need-new-inventions-president-iotova-says Wed, 03 Jun 2026 14:27:00 +0300 Modern defence capabilities need new inventions, achievements at the highest technological levels, as well as security and sustainability of production, President Iliana Iotova said on Wednesday. She was speaking at the official opening of the Hemus 2026 International Defence Equipment and Services Exhibition in Plovdiv. Iotova said that this requires a rethink of national policies in the sector, as the war in Ukraine in particular has exposed several serious deficits. She said these include insufficient production, irregular supplies and a lack of coordination among EU Member States. “The events of the past few years - the war in Ukraine and the Middle East - have made all institutions rethink the concept of security and realize that the security of our peoples and countries can no longer be guaranteed in the old way alone: through human resources and the production of ever more equipment,” the President said. She also addressed the serious financial resources earmarked by the European Commission for defence capabilities under the next Multiannual Financial Framework but expressed reservations about the funding allocated for scientific discoveries, which stands at only 15%. Iotova said Bulgaria’s position on the matter is yet to be formulated. The opening ceremony was also attended by Defence Minister Dimitar Stoyanov, Innovation and Digital Transformation Minister Ivan Vasilev, Plovdiv Regional Governor Georgi Yanev, Plovdiv Mayor Kostadin Dimitrov, among others. Before the official opening, the President reviewed the guard of honour. The Hemus 2026 Exhibition is held under the auspices of the Ministry of Defence, the Ministry of Economy, Investment and Industry, and the Ministry of Innovation and Digital Transformation. Its main organizer is the Hemus 95 Foundation. Economy Tatiana Marinova BTA correspondent Presiana Valkanova https://www.bta.bg/en/news/economy/1139479-government-replaces-lukoil-special-commercial-administrator https://www.bta.bg/en/news/economy/1139479-government-replaces-lukoil-special-commercial-administrator Wed, 03 Jun 2026 13:38:00 +0300 The Cabinet replaced Wednesday the special commercial administrator of the Lukoil assets in Bulgaria, Rumen Spetsov, Economy, Investment and Industry Minister Alexander Poulev said after the government's weekly meeting.  Spetsov's successor is Evgeni Simeonov. In Poulev's words, the change was backed unanimously by the Security Council and endorsed by the Council of Ministers. The Minister cited "complex but overwhelming motives" for the change. He said the newly appointed special administrator has the expertise and professional experience necessary to ensure effective, transparent and lawful oversight of the Lukoil group companies. Simeonov has been with the Economy Ministry for over 10 years, beginning in 2026 as a junior expert and going up to senior positions including head of the State Agency for Metrological and Technical Surveillance, Poulev said. Spetsov has been special administrator since November 2025. The figure of the special commercial administrator gained prominence in the public domain after such an executive was appointed in November 2025 to oversee Lukoil's four operations in Bulgaria as the Russian oil group became subject to US sanctions. In February 2026, Litasco SA, a Geneva-based member of the Lukoil Group and the immediate shareholder of Lukoil Neftohim Burgas AD and Lukoil Bulgaria EOOD, claimed that the imposition of external management over these two and other businesses of Lukoil in Bulgaria and other actions taken by Bulgaria resulted in significant losses to the group and amounted to unlawful expropriation of Litasco's investments without compensation. Litasco said it intended to pursue all available legal remedies. Economy Nikoleta Vasileva https://www.bta.bg/en/news/bulgaria/1139448-defence-ministry-plans-10-reduction-in-wage-costs-minister-says https://www.bta.bg/en/news/bulgaria/1139448-defence-ministry-plans-10-reduction-in-wage-costs-minister-says Wed, 03 Jun 2026 13:04:00 +0300 The Ministry of Defence is expected to reduce its wage expenditure by 10%, Defence Minister Dimitar Stoyanov said in Plovdiv on Wednesday. Stoyanov said the measure had been set as a requirement by the Ministry of Finance. He added that the Ministry of Defence plans to eliminate permanently vacant positions and conduct a comprehensive functional analysis to determine where and how parts of the administration could be restructured. "There will be no layoffs among military personnel. We will definitely not touch that area," Stoyanov said. The Defence Minister spoke at the opening of the 17th International Defence Equipment and Services Exhibition Hemus 2026 in Plovdiv, which will run until June 6. Bulgaria Yoanna Vodenova BTA correspondent Presiana Valkanova https://www.bta.bg/en/news/economy/1139428-defence-ministry-aims-for-over-20-industrial-cooperation https://www.bta.bg/en/news/economy/1139428-defence-ministry-aims-for-over-20-industrial-cooperation Wed, 03 Jun 2026 12:58:00 +0300 Defence Minister Dimitar Stoyanov met representatives of the Bulgarian defence industry at a working breakfast held as part of the Hemus 2026 defence equipment exhibition, which opened in Plovdiv on Wednesday, the Ministry's press centre reported. “We will work to ensure that the Bulgarian defence industry has genuine participation in every armed forces modernization project,” Stoyanov said, stressing that his team would seek to achieve more than 20% industrial cooperation in the defence sector. “It is important for us as a Government that a larger share of the funds under the SAFE mechanism remains in Bulgarian companies and contributes to the development of the national industry,” he said. Stoyanov called on representatives of the defence industry to be proactive in the upcoming modernization projects, assuring them that they could rely on the full support of the Defence Ministry. He stressed that the goal of his team is for the Ministry and the Bulgarian defence industry to work in sync through regular working meetings in order to ensure more effective cooperation. Representatives of more than 20 Bulgarian companies took part in the working breakfast, the statement said. Economy Momchil Rusev