https://www.bta.bg/en/news/economy/rss Fri, 24 Jul 2026 19:17:34 +0300 en hourly 1 https://www.bta.bg/en/news/economy/1173358-pm-radev-us-energy-secretary-wright-discuss-bulgaria-us-energy-partnership https://www.bta.bg/en/news/economy/1173358-pm-radev-us-energy-secretary-wright-discuss-bulgaria-us-energy-partnership Fri, 24 Jul 2026 18:27:59 +0300 Prime Minister Rumen Radev had a phone call with US Energy Secretary Chris Wright on Friday. Energy diversification in Southeastern Europe, improved connectivity, the construction of the Vertical Gas Corridor, the project for new units at the Kozloduy Nuclear Power Plant using US technology, and the development of large data centres and artificial intelligence factories were among the topics discussed, the Government Information Service said. The two shared the view that energy policies should ensure sustainability in the sector and the competitiveness of the economy. During the conversation, Radev stressed the importance for Bulgaria and the region of ensuring uninterrupted operations at the Lukoil Neftohim Burgas oil refinery. Economy Diana Dukovska https://www.bta.bg/en/news/economy/1173270-bulgaria-attracts-more-foreign-tourists-with-competitive-prices-coastal-resorts https://www.bta.bg/en/news/economy/1173270-bulgaria-attracts-more-foreign-tourists-with-competitive-prices-coastal-resorts Fri, 24 Jul 2026 16:24:19 +0300 Bulgaria is attracting increasing numbers of foreign tourists thanks to a combination of competitive prices, modern hotels along its Black Sea coast and rich cultural heritage, French television channel TF1 said in a report on summer tourism in this country. According to TF1, Bulgaria welcomed a record 13 million foreign visitors in 2024, while its Black Sea resorts are increasingly competing with traditional destinations such as Greece, Croatia and Türkiye. The report features Sunny Beach as a resort offering kilometres of sandy beaches, warm sea waters and high-standard hotel services at significantly lower prices than on the French Riviera. An all-inclusive hotel stay starts at around EUR 100 per room per night, including food and drinks, spa services, pools, entertainment and children's programmes. TF1 said a similar holiday on the Côte d'Azur would cost about three times as much. A hotel manager quoted in the report said the complex is continuously investing in upgrading its facilities and expanding its services, with occupancy already at full capacity through the end of September. TF1 also noted that Bulgaria's adoption of the euro at the beginning of 2026 and improved air connectivity with France and other European countries are contributing to growing interest in the country. A representative of a travel agency specialising in the French market said better flight connections had significantly facilitated travel to Bulgaria. The television channel said a seven-day organised holiday including transport, accommodation and excursions costs around EUR 1,600 per person, about EUR 500 less on average than a comparable holiday in Greece or Spain. Beyond seaside tourism, the report also highlights Bulgaria's cultural heritage, featuring the UNESCO-listed town of Nessebar. According to TF1, the town attracts around 1.5 million visitors annually and is the most visited municipality in Bulgaria. French tourists interviewed for the report described Bulgaria as a destination with a rich history and well-preserved cultural heritage that remains largely unaffected by overtourism Economy Metodi Yordanov Spas Stambolski https://www.bta.bg/en/news/world/1173236-bulgarian-opticoelectron-group-says-china-export-restrictions-unlikely-to-signif https://www.bta.bg/en/news/world/1173236-bulgarian-opticoelectron-group-says-china-export-restrictions-unlikely-to-signif Fri, 24 Jul 2026 16:09:53 +0300 Bulgarian company Opticoelectron Group AD told BTA on Friday that, at this stage, it has no official information regarding the reasons for its inclusion on a list of 14 EU importing organisations targeted by China’s latest restrictions on exports of dual-use goods. China’s Ministry of Commerce announced earlier, quoted by Reuters, that it was banning exports of dual-use goods to the 14 organisations, with the restrictions taking effect immediately. The Chinese ministry said the move was in response to the European Union’s latest package of sanctions against Russia, under which 14 companies from mainland China and Hong Kong were sanctioned. The measures affect companies from several EU member states, including Bulgaria, Germany, France, Italy, Poland, the Netherlands, the Czech Republic and Lithuania. “We assume that this is related to the fact that the company manufactures high-tech products for the defence industry and is a subcontractor to a number of leading international companies in the sector,” Opticoelectron Group Executive Director Engineer Boyan Garchev said in response to a BTA inquiry. He added that the company does not expect the decision to have a significant impact on its operations. Opticoelectron Group is a manufacturing company with a high degree of technological and production independence and has consistently been developing its own capabilities, seeking to produce as many of the components and products it needs as possible using its own resources, Garchev noted. “We are not critically dependent on China in terms of supplies, and at present we do not anticipate difficulties in fulfilling our current contractual commitments or in implementing future projects,” the company’s executive director said. World Metodi Yordanov Ivona Velichkova Bozhidar Zahariev https://www.bta.bg/en/news/economy/1173158-parliament-raises-tobacco-excise-duties https://www.bta.bg/en/news/economy/1173158-parliament-raises-tobacco-excise-duties Fri, 24 Jul 2026 15:49:00 +0300 Higher tobacco excise duties were approved by Parliament at second reading of the 2026 State Budget Bill on Friday. Excise duty on smoking tobacco, including pipe and cigarette tobacco, will be set at EUR 130 per kilogram from August 1, 2026, EUR 138 per kilogram from March 1, 2027, and EUR 146 per kilogram from January 1, 2028. Amendments to the Gambling Act stipulate that gambling may be promoted through affiliate operators, companies or platforms that run affiliate programmes, by Bulgarian or foreign legal entities and individuals, including sole traders. If the affiliate operator is a foreign individual or legal entity, its licence application under the Act must identify an authorised representative with an address in Bulgaria and powers broad enough to sign contracts on the foreign person’s behalf and represent them before Bulgarian state authorities and courts. Gambling promotion through affiliate operators without a valid licence under the Act is prohibited, as is promotion on behalf of gambling organisers that do not hold such a licence. Parliament rejected a Continue the Change (CC) proposal to ban gambling advertising on vehicles, in radio and television programmes, electronic publications and other media. Economy Nelly Zheleva Kaloyan Kirilov https://www.bta.bg/en/news/bulgaria/1173133-trade-union-urges-ombudsman-to-refer-provisions-on-minimum-wage-in-2026-budget-a https://www.bta.bg/en/news/bulgaria/1173133-trade-union-urges-ombudsman-to-refer-provisions-on-minimum-wage-in-2026-budget-a Fri, 24 Jul 2026 15:09:00 +0300 The Confederation of Independent Trade Unions in Bulgaria (CITUB) sent an open letter to Ombudsman Velislava Delcheva requesting that she refers certain provisions of the 2026 State Budget Act relating to the minimum wage and length of service to the Constitutional Court. The trade union said that it is convinced that the intervention of the Court is necessary to safeguard the principles of the rule of law, the supremacy of the Constitution, the protection of labour, and the guarantee of predictable and stable labour legislation. CITUB stated that an attempt is being made "to make fundamental changes to labour legislation in a manner that is consistent neither with the subject matter of the Budget Act nor with established standards for high-quality and transparent law-making". CITUB warned that the adoption of these texts alters the general regime governing permanent employment and suspends the current mechanism for determining the minimum wage. The trade union emphasized that this also undermines the role of the social partners in discussing long-term solutions. CITUB pointed to a 2020 Constitutional Court ruling stating that, given the specific purpose of the State Budget Act, it cannot be used to make permanent amendments to substantive laws that are not directly necessitated by the implementation of the budget. On July 17, CITUB insisted that the proposal to suspend the current mechanism for setting the minimum wage be withdrawn between the first and second readings of the draft State Budget Act for 2026. Ombudsman Delcheva also called for a review of the proposed amendments to the Labour Code, which concern the method of calculating and recognizing length of service, as well as the mechanism for setting the minimum wage. Following Thursday's debate in Parliament on the proposals in the draft budget for 2026, MPs are voting on the final texts on Friday. Bulgaria Nikolay Zabov Borislava Bibinovska https://www.bta.bg/en/news/economy/1173100-actress-maria-bakalova-to-participate-in-tourism-ministry-promotional-campaign https://www.bta.bg/en/news/economy/1173100-actress-maria-bakalova-to-participate-in-tourism-ministry-promotional-campaign Fri, 24 Jul 2026 14:32:00 +0300 The Oscar-nominated Bulgarian actress Maria Bakalova will join the Ministry of Tourism's initiative to present Bulgaria to the world, the Tourism Ministry press service said Friday. At a meeting with Tourism Minister Ilin Dimitrov, Bakalova accepted an invitation to become an ambassador for Bulgarian tourism and share her favourite places and experiences. “We need successful, recognizable Bulgarians to showcase the country’s hospitality. Your achievements have drawn the international film industry’s attention to Bulgaria and helped attract a growing number of foreign productions,” Dimitrov said. Bakalova said she was particularly impressed by Bulgarian roses and the tradition of rose picking, which will feature in an upcoming project of hers. “We have a beautiful and hospitable country, and we must show it to as many people as possible. That is why I always speak proudly about Bulgaria,” Bakalova said. Dimitrov presented her with a statuette featuring a golden rose, a symbol of Bulgaria. Bakalova is in Bulgaria alongside renowned professionals to film an international production in which she plays the female lead. “In every project I join, I try to propose Bulgarian crews and locations. That is also the case now, and it is why I am here,” Bakalova added. Eurovision 2026 winner DARA and Olympic, world and European weightlifting champion Karlos Nasar launched the initiative. World kickboxing star Stoyan Koprivlenski, Olympic snowboarding medallist Tervel Zamfirov and Olympic biathlon medallist Lora Hristova have also recorded videos featuring personal messages from their favourite places in Bulgaria. The Ministry of Tourism project will produce videos and promotional materials featuring prominent Bulgarians, including artists, athletes, scientists, young talents and other high achievers who can speak personally and convincingly about the country. The footage will be distributed through international media and digital platforms. More prominent Bulgarians are expected to join the initiative, the ministry added. Economy Atanas Malakchiev Ivona Velichkova https://www.bta.bg/en/news/bulgaria/1172926-parliament-adopts-2026-state-budget-framework https://www.bta.bg/en/news/bulgaria/1172926-parliament-adopts-2026-state-budget-framework Fri, 24 Jul 2026 11:44:00 +0300 Parliament adopted the 2026 State Budget framework, including a 5.7% deficit, at second reading on Friday. The vote was 125 to 84, with no abstentions. The opposition's proposals to amend the revenue and expenditure sections of this year's State Budget Bill were rejected. MPs adopted the budgets of the judiciary, the National Assembly, the President's administration, the Council of Ministers, the Bulgarian National Audit Office, the Constitutional Court, the Ombudsman, individual ministries, State agencies and commissions. A proposal by Vazrazhdane MP Angel Georgiev to redirect EUR 17 million earmarked for Ukraine in the Ministry of Foreign Affairs budget to Bulgarian communities abroad and "not give Ukraine a single cent" was rejected. "I must remind Progressive Bulgaria of a comment Prime Minister Rumen Radev made several weeks ago, when he said that no money would be provided to Ukraine this year. Yet what do we see in the budget? EUR 17 million for Ukraine," Georgiev said. "Given the current budget situation, it is not normal to keep making excuses about everything, from pensioners to mothers, saying there is never any money, only to suddenly find that there is money for Ukraine," Georgiev added. He requested another vote, but the proposal was rejected again. Proposals by GERB-UDF, Continue the Change (CC) and Vazrazhdane for additional funding to increase school student scholarships were also rejected. During Thursday's debate on the bill, the three political formations called for an increase in the scholarships, whose minimum amount of BGN 21, or EUR 10, was set in 1999. A proposal by Progressive Bulgaria MP Rumen Milanov and a group of MPs from other parliamentary groups to increase the State Agency for Technical Operations budget by more than EUR 2 million was also rejected in a repeat vote. The funding was intended for post-warranty maintenance and procurement of operational equipment, the provision of technical resources and a major overhaul of the agency's administrative building complex in Sofia. The budgets of the Council for Electronic Media, Bulgarian National Television, Bulgarian National Radio, the Bulgarian News Agency and the municipalities were approved. MPs continued voting at second reading on the remaining provisions of the 2026 State Budget Bill. Deputy Prime Minister and Minister of Finance Galab Donev was present in the plenary chamber. Bulgaria Teodora Tsaneva Kaloyan Kirilov https://www.bta.bg/en/news/economy/1172721-proposed-hourly-length-of-service-rule-and-toll-charges-dominate-budget-debate https://www.bta.bg/en/news/economy/1172721-proposed-hourly-length-of-service-rule-and-toll-charges-dominate-budget-debate Thu, 23 Jul 2026 20:30:53 +0300 Proposed Labour Code amendments introducing hourly calculation of length of service and a planned increase in toll charges dominated the debate during the second reading of the 2026 State Budget Bill in the National Assembly on Thursday. At the proposal of Continue the Change leader Assen Vassilev, the parliamentary Budget Committee approved delaying the entry into force of the Labour Code amendments until the beginning of next year, instead of by September 1 this year as originally envisaged. During the plenary debate, Vassilev described the governing majority's proposal on hourly calculation of working time and the effective halving of length of service and annual leave entitlements, as "bad news" and "ill-conceived". He noted that the budget earmarks EUR 24.6 million in additional revenue from higher toll charges while allocating EUR 50 million in compensation to the road transport sector. "Wouldn't it be easier not to raise the toll charges and not have to compensate them?" Vassilev asked. He also said the draft budget does not include a business support scheme providing compensation for high electricity prices. The measure was included in the Budget Extension Act and will expire once the new budget is adopted, leaving the government without a mechanism to respond if another energy crisis arises, he added. Konstantin Prodanov (Progressive Bulgaria), Chair of the Budget and Finance Committee, said that many of those working between four and seven hours a day are employed in the hotel and restaurant sector, construction and manufacturing, rather than belonging to vulnerable social groups. "Whether four plus four equals eight is regulated by ordinance, and if any issues arise from the implementation of this provision, they will be resolved there to ensure that workers are not disadvantaged," he said. Commenting on support for the transport sector, Prodanov said the assistance is linked to higher toll charges introduced under a European directive and that the previous two governments had already committed to providing compensation to transport operators. He noted that toll charges are paid not only by Bulgarian hauliers but also generate substantial revenue from international transport operators. Regarding energy support, Prodanov said the Budget Extension Act already provides for energy assistance. In addition, there is a notified state aid scheme for energy-intensive enterprises that is ready to be activated if necessary, he added. Georg Georgiev (GERB-UDF) drew attention to what he described as a significant reduction in funding for diplomacy at a time of a complex international situation. "For the first time, diplomats will have funds taken away from them. Suspending the additional material incentives is not a saving," said Georgiev, who is former foreign minister. According to him, diplomats' incomes would effectively be reduced by 20%, even though their average salaries are already only in the three-figure range. He added that the Budget Committee had rejected his proposal to allocate an additional EUR 6.178 million for the remuneration of diplomatic and consular staff. Nadezhda Yordanova (Democratic Bulgaria) said her parliamentary group could not support the section of the budget relating to the judiciary. The ex-justice minister noted that the proposal envisages increasing the judiciary's budget by 7.66% compared with 2025, while GDP is forecast to grow by 2.66%. "Does this mean Bulgarian citizens are receiving better justice? That is not the case," Yordanova said. Economy Valentin Evstatiev Teodora Tsaneva Nelly Zheleva https://www.bta.bg/en/news/economy/1172658-regional-development-ministry-to-launch-new-support-procedure-for-smes-in-bulgar https://www.bta.bg/en/news/economy/1172658-regional-development-ministry-to-launch-new-support-procedure-for-smes-in-bulgar Thu, 23 Jul 2026 19:36:57 +0300 The Regional Development and Public Works Ministry will launch a new procedure to support small and medium-sized enterprises (SMEs) in Bulgaria’s three coal regions of Stara Zagora, Kyustendil and Pernik under the Just Transition Fund, Deputy Minister Desislava Georgieva said on Thursday. She was speaking at a meeting with stakeholders, which discussed the forthcoming steps under the procedure for the economic diversification of the coal regions. The discussion was also attended by Deputy Prime Minister Atanas Pekanov, Regional Development and Public Works Minister Ivan Shishkov, business representatives and officials from the territorial administrations of the three regions. The new procedure is intended to introduce clear and objective assessment criteria that will safeguard both the EU and Bulgarian budgets. A process to terminate the existing application procedure had been launched earlier this week and was expected to be completed on Friday. The criteria for the new procedure are expected to be ready in September or October. The Ministry recalled that, following a number of alerts, the caretaker government of prime minister Andrey Gurov (February-May 2026) commissioned an audit of the procedure. The audit identified irregularities in the organization of the assessment process, subjective decision-making, and a lack of transparency and equal treatment of applicants. The new procedure will therefore introduce objective and clearly measurable criteria. Proposals under discussion include the automatic calculation of some indicators in the Information System for Management and Monitoring, based on financial data such as earnings before interest, taxes, depreciation and amortization, and profitability. Other proposed requirements include applicants having been registered for at least three years and the preparation of a specific list of eligible economic activities in line with the National Strategy for SMEs for 2021–2030. Ineligible sectors are also expected to be listed exhaustively. The Ministry added that consideration is being given to removing subjective criteria based on business plans, growth forecasts and analyses of prospective market niches. Another option under review is to link the technological modernization of enterprises to employee training in the use of newly acquired equipment. One of the proposals is to reduce the aid intensity under the de minimis scheme to 65%, which would allow support to reach more businesses and would increase the commitment of beneficiaries through their own financial contribution. The Ministry also quoted Deputy Prime Minister Atanas Pekanov as saying that the problems identified in the procedure were important both for Bulgaria and the EU. He said the aim was to launch a new procedure with clear criteria and a mandatory contribution from applicants, while preserving as much of the Just Transition Fund resources as possible for supporting the affected regions. During the meeting, business representatives expressed support for reducing the grant intensity so that funding could reach a larger number of enterprises. They proposed discussing different co-financing rates for small and medium-sized enterprises, as well as for start-ups and established companies. They also called for more active dialogue in the preparation of the criteria for the new procedure. In 2025, the Ministry launched a grant procedure under the Just Transition Fund with a budget of BGN 250 million (EUR 127.82 million). The funding was intended to support micro, small, medium-sized and start-up enterprises in the regions of Pernik, Kyustendil and Stara Zagora, as well as in another ten municipalities in the coal regions, as part of their transition towards climate neutrality. The planned grants ranged from BGN 50,000 (EUR 25,565) to BGN 500,000 (EUR 255,646) for micro and small enterprises, and up to BGN 1 million (EUR 511,292) for medium-sized enterprises. Economy Tatiana Marinova Zhenya Ilcheva https://www.bta.bg/en/news/economy/1172693-ex-finance-minister-says-previous-cabinet-had-earmarked-funds-for-rheinmetall-gu https://www.bta.bg/en/news/economy/1172693-ex-finance-minister-says-previous-cabinet-had-earmarked-funds-for-rheinmetall-gu Thu, 23 Jul 2026 19:31:08 +0300 “In the 2026 draft budget, we provided the necessary funds of EUR 407 million for the establishment of a joint venture, and EUR 260 million for increasing the capital of VMZ–Sopot,” said GERB–UDF MP Temenuzhka Petkova to journalists in Parliament in response to comments by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Poulev that the previous government had not allocated funding for the planned gunpowder and ammunition plant of Rheinmetall and VMZ–Sopot. “The fact that the budget was not adopted should weigh on the conscience of former President Rumen Radev and all those who protested,” Petkova added. According to her, “it is now their turn, and they must do everything necessary to protect this investment.” “During our term in office, we secured the arrival of this investor in Bulgaria, publicly signed the shareholders’ agreement, negotiated the best possible terms for Bulgaria, and secured the financing as well,” Petkova said. Economy Liliya Yordanova Petya Petrova https://www.bta.bg/en/news/economy/1172600-ecb-is-ready-to-welcome-new-members-of-euro-area-as-long-as-they-satisfy-criteri https://www.bta.bg/en/news/economy/1172600-ecb-is-ready-to-welcome-new-members-of-euro-area-as-long-as-they-satisfy-criteri Thu, 23 Jul 2026 18:25:22 +0300 The European Central Bank (ECB) is always ready to welcome new members of the euro area, provided that they meet the accession criteria, ECB President Christine Lagarde said in response to a question from BTA during a press conference following the conclusion of the ECB Governing Council’s two-day meeting in Frankfurt, at which the bank kept its key interest rates unchanged. The question was related to a statement by Hungarian Prime Minister Peter Magyar, who said in June that Budapest could meet the European Union’s requirements for adopting the euro around 2030. At the end of June, the ECB’s latest 2026 Convergence Report found that no country outside the euro area currently meets the criteria for introducing the euro, while Hungary fails to meet any of the economic and legal criteria. “As you know, there is an established process. Bulgaria has successfully gone through it. We are always ready to welcome new members, as long as they satisfy the requirements and meet the criteria, and the convergence conclusion is positive. So we will see. As you know, this always takes a little bit of time,” Lagarde said. She stressed that the ECB does not have the authority to make decisions on the admission of new countries to the euro area. “On this matter, we give views, in relations to inflation. It is a matter under the consideration of the European Council and the European Commission,” the ECB president noted. Lagarde also recalled that all European Union member states, with one exception, have committed to joining the euro area in the future. Economy Petya Petrova BTA special correspondent Elena Savova https://www.bta.bg/en/news/economy/1172469-deputy-pm-poulev-says-issues-identified-with-rheinmetall-vmz-sopot-ammunition-pl https://www.bta.bg/en/news/economy/1172469-deputy-pm-poulev-says-issues-identified-with-rheinmetall-vmz-sopot-ammunition-pl Thu, 23 Jul 2026 17:41:00 +0300 Deputy Prime Minister and Minister of Economy, Investment and Industry Alexander Poulev told a briefing at the Council of Ministers that a number of issues had been identified with the overall mechanism of the project for building a gunpowder and ammunition plant by Rheinmetall and VMZ-Sopot. Earlier on Thursday, Poulev, Prime Minister Rumen Radev and representatives of Rheinmetall management held a meeting in Sofia. There is no founding agreement, no joint venture between VMZ-Sopot and Rheinmetall, and the financing for this project was not envisaged in the budget, Poulev said. "Despite the generous promises of the Borisov Cabinet, there was no funding allocated in the central government budget," he added. There are no calculations, no financial justification, he said. Poulev said his predecessors had failed to secure financing, but had arranged direct talks with construction companies Hydrostroy and Glavbolgarstroy without public procurement procedures. "The site for implementing the project is not optimal. For this activity, an industrial site with water supply and the required energy capacity is needed. However, there is no water; there is a forest. A site from the state forest fund was provided," Poulev explained. An initiative of then President (2017-2026) Rumen Radev led to the launch of dialogue with Rheinmetall. The initiative for negotiations was transferred to the Boyko Borisov Cabinet, but the findings as of today are not positive, the Deputy Prime Minister said. The government is ready to encourage expert dialogue so as to overcome the numerous structural deficiencies, he added. "A comprehensive recovery process is needed to enable the implementation of this critical and key process from the perspective of our relations," Poulev said. "There is very strong political will for the government to work in the interest of Bulgarian citizens. We want to strengthen relations in terms of our economic partnership with a critical investor such as Germany, continue the dialogue and find the right formula with Rheinmetall in order to achieve our shared goals," Poulev said. The government's ambition is for Bulgaria not to remain on the periphery. Bulgaria must be at the centre of all EU defence initiatives, he added. Pascal Schreyer, CEO Business Unit Energetic Materials at Rheinmetall, reiterated the company's commitment to continue what was agreed upon last autumn. He said: "We are understanding that there are some obstacles on the way that we need to mitigate and we have just decided that we will now meet on a regular base. (...) We have also agreed that we might have an extended scope with new opportunities to come." He added that the sides had decided that they want to strengthen their relationship On October 28, 2025, the Rosen Zhelyazkov government and German automotive and arms manufacturer Rheinmetall announced the start of a nearly EUR 1 billion project to build a gunpowder and ammunition factory in Karlovo (Central Bulgaria), with ownership divided 49% to 51% and total investment estimated at about BGN 1 billion. After the Rumen Radev government took office, Poulev said there was no contract or framework agreement with the German company. On July 9, 2026, Defence Minister Dimitar Stoyanov said the government had not abandoned plans for an investment in a gunpowder plant and that negotiations between the Economy Ministry and Rheinmetall were forthcoming.     Economy Nikolay Trifonov Diana Dukovska https://www.bta.bg/en/news/economy/1172571-ecb-president-says-bulgaria-s-commitment-to-sound-public-finances-is-key-amid-hi https://www.bta.bg/en/news/economy/1172571-ecb-president-says-bulgaria-s-commitment-to-sound-public-finances-is-key-amid-hi Thu, 23 Jul 2026 17:32:22 +0300 European Central Bank (ECB) President Christine Lagarde acknowledged the high prices and inflation levels in Bulgaria and highlighted the country's commitment to observe sound public finances. Her comment came as a response to a BTA question at a press conference on Thursday after a monetary policy meeting of ECB's Governing Council in Frankfurt am Mein, Germany.  "You are correct that Bulgaria is currently experiencing high price level, high inflation and that might have to do with the fact that some prices that have been kept on hold for a period of time have found their way into the markets. It is not totally unusual and we always have divergences between Member States," she said. "I think what matters is the commitment of Bulgaria to observe sound public finances and to make sure that inflation returns to more acceptable levels - in particular for the Bulgarian population. We monitor the overall euro area but we are attentive to divergences and this is clearly one of them in the moment," Lagarde added.  Earlier on Thursday, the ECB kept its key interest rates unchanged. Economy Momchil Rusev BTA special correspondent Elena Savova https://www.bta.bg/en/news/bulgaria/1172434-employees-of-medicine-maker-bulbio-hold-protest-demanding-company-stabilization https://www.bta.bg/en/news/bulgaria/1172434-employees-of-medicine-maker-bulbio-hold-protest-demanding-company-stabilization Thu, 23 Jul 2026 16:24:00 +0300 Employees of state-owned medicine maker BulBio (BB-NCIPD) held a protest in Sofia on Thursday demanding higher wages and urgent measures to stabilize the company. They briefly blocked the boulevard where the company building stands. Demonstrators said that BulBio is experiencing serious financial difficulties, although it produces vaccines and over 600 medicinal products which are exported to nearly 100 countries. One of the main issues identified by employees is that the company has stopped making BCG vaccine, which is primarily used against tuberculosis. They say BCG production was halted due to substandard repairs of the relevant laboratory and the installation of equipment which does not meet World Health Organization requirements. The company's BCG output has been used to vaccinate around 32 million children across the world annually. UNICEF is among BulBio's main clients. The Health Ministry told BTA on Thursday that the reasons for BulBio's financial losses are being examined in an ongoing audit. Once the audit is completed, the ministry will assess the management and financial decisions that led to the company's current situation, as well as responsibility for them. The audit report from the previous review of the company's financial position and its construction contracts has been forwarded to the General Directorate National Police for action within its remit. Once the inspections have been completed, the Health Ministry will take specific measures to stabilize the company's finances, strengthen oversight of contracts and expenditure, and ensure the uninterrupted production of vaccines. Regarding a proposal to relocate vaccine production to Turkiye for the needs of the local market, Health Minister Katya Ivkova refused to approve the proposed transfer of production technology. The ministry said that the decision is in line with its consistent policy of retaining BulBio's strategic capacity in Bulgaria. The company's scientific expertise, technological developments and production facilities constitute a national resource of key importance to the country's security. They should therefore be retained, developed and used in the interests of the Bulgarian people and the Bulgarian state, the Health Ministry press centre added. Bulgaria Valentin Evstatiev https://www.bta.bg/en/news/economy/1172502-h1-2026-car-registrations-up-by-5-7-in-eu-bev-registrations-in-bulgaria-double https://www.bta.bg/en/news/economy/1172502-h1-2026-car-registrations-up-by-5-7-in-eu-bev-registrations-in-bulgaria-double Thu, 23 Jul 2026 16:22:09 +0300 New EU car registrations rose by 5.7% year-to-date, with a strong performance in June contributing to a positive first half of 2026, according to data from the European Automobile Manufacturers' Association (ACEA), published on Thursday. This came against a backdrop of persistent geopolitical headwinds weighing on the outlook. Hybrid-electric vehicles lead as the most popular powertrain choice among buyers, while battery-electric cars reached 20.7%. In addition, plug-in hybrids captured 9.8% of the EU market. New EU car registrations by power source Up until June 2026, battery-electric cars held a 20.7% share of the EU market, up from 15.6% a year earlier. Hybrid-electric car registrations captured 37.3% of the market, remaining the preferred choice among consumers in the EU. At the same time, the combined market share of petrol and diesel cars fell to 29.7%, compared with 37.8% a year earlier. In the first half of 2026, 1,220,890 new battery-electric cars were registered, capturing 20.7% of the EU market. Three of the four largest EU markets, which together accounted for 63% of all battery-electric car registrations, experienced strong growth: France (+62.9%), Germany (+48%), and Denmark (+41.2%). Belgium also posted an increase (+8.2%), albeit at a more moderate pace. H1 2026’s figures also showed new EU hybrid-electric car registrations rising to 2,198,148 units, supported by growth in Italy (+23%) and Spain (+20.8%), with Germany (+6.9%) and France (+3.2%) also recording increases. Overall, hybrid-electric models accounted for 37.3% of the total EU market. Registrations of plug-in-hybrid electric cars continued to grow, reaching 577,735 units in H1 2026. This was driven by rising volumes in key markets such as Italy (+84.3%), Spain (+39%), and Germany (+17.9%). New plug-in-hybrid electric cars now represent 9.8% of EU registrations, up from 8.5% over the same period in 2025. Petrol and diesel cars By the end of June 2026, petrol car registrations declined by 17.2%, with decreases across all major markets. France registered the strongest drop, with volumes falling by 34.2%, while other key markets also posted double-digit decreases: Spain (-18.5%), Germany (-18.2%), and Italy (-17.1%). With 1,309,153 new cars registered in the first six months of 2026, the market share for petrol fell to 22.2% from 28.4% in H1 2025. Meanwhile, the diesel car market continued its downward trend, with registrations declining by 16.5% and accounting for 7.5% of new car registrations, down from 9.4%. Bulgaria In the first half of 2026, a total of 25,957 new passenger cars were registered in Bulgaria, representing a 7.9% increase compared with the same period in 2025, according to data from ACEA. The strongest growth was recorded in battery electric vehicles, with registrations nearly doubling to 2,029 vehicles, an increase of 95.8% year-on-year. Hybrid electric vehicles also saw significant growth, with registrations rising 105% to 1,607 vehicles, while plug-in hybrid electric vehicles increased by 75.8% to 480 vehicles. Registrations of petrol-powered cars declined by 3% to 17,808 vehicles, while diesel car registrations increased by 11.6% to 4,004 vehicles. Cars with other types of powertrains totaled 29 vehicles, representing a 45% increase compared with the first half of last year. In June alone, 5,457 new passenger cars were registered in Bulgaria, 18.6% more than in the same month of 2025. During the month, registrations of battery electric vehicles rose by 135.5% to 478 vehicles, plug-in hybrid electric vehicles increased by 124.6% to 128 vehicles, and hybrid electric vehicles grew by 114.3% to 345 vehicles. Registrations of petrol-powered cars increased by 3.3% to 3,613 vehicles, while diesel car registrations rose by 31% to 888 vehicles. Economy Petya Petrova https://www.bta.bg/en/news/bulgaria/1172110-parliament-debates-2026-state-budget-bill-with-5-7-deficit-at-second-reading https://www.bta.bg/en/news/bulgaria/1172110-parliament-debates-2026-state-budget-bill-with-5-7-deficit-at-second-reading Thu, 23 Jul 2026 10:10:00 +0300 Bulgaria's Parliament on Thursday began the second-reading debate on the 2026 State Budget Bill, which envisages a budget deficit of 5.7%. The MPs voted to extend the sitting until the debate is concluded. Deputy Prime Minister and Finance Minister Galab Donev and other Cabinet ministers are attending the plenary sitting. The vote on the bill is on Friday's agenda. The Budget and Finance Committee approved the bill on second reading at an over 12-hour extraordinary meeting which ended in the small hours of Wednesday. The committee rejected all proposals submitted between the two readings to increase social benefits and compensations this year. The bill sets the ceiling for new government debt in 2026 at EUR 10.1 billion, which includes a loan of up to EUR 3.261 billion under the Security Action for Europe (SAFE) instrument to strengthen the defence industry. Government debt is projected to reach EUR 37.7 billion, or 30.1% of GDP. The State Budget Bill provides for a 10% reduction in personnel expenditure from September 1, excluding municipalities, military personnel, employees of the Interior Ministry and the security services, staff covered by the Implementation of Penal Sanctions and Detention in Custody Act, and certain employees under the Medical Treatment Facilities Act. It also envisages higher revenue from the toll system, a 30% increase in vignette fees, and higher excise duties on tobacco and tobacco products from August 1. The bill also proposes suspending the automatic mechanisms for determining the remuneration of military personnel and employees of the Interior Ministry and the National Service for Protection. The minimum monthly wage would be set at EUR 620 until a new mechanism for determining it is introduced. The bill provides for civil servants under the Civil Servants Act and employees covered by the Judicial System Act to begin paying personal social security contributions from August 1. Their basic monthly salaries must be set so that, after deducting mandatory employee social security contributions and income tax, their net pay is no lower than the net amount received as of July 31. The bill also requires that, by September 15, draft amendments be prepared to abolish the Committee for Disclosing the Documents and Announcing Affiliation of Bulgarian Citizens to State Security and to the Intelligence Services of the Bulgarian National Army (informally known as the Secret Police Files Committee) and its functions to be transferred to the Archives State Agency. It also proposes reducing the number of members of the management and supervisory boards of public enterprises from five to three. The bill caps the Financial Supervision Commission chairperson's remuneration at 95% of the Bulgarian President's basic monthly salary and repeals the provision allowing the chairperson and other commission members to receive performance-related bonuses under the Commission's internal remuneration rules. The debate During the debate, Zdravko Markov of Progressive Bulgaria said that according to Eurostat data, the deficit in the first quarter of 2026 stood at 7.6%. "Some of the expenditure was not incurred by the government of Progressive Bulgaria," he said, adding that the budget implements a large part of the capital expenditure programme planned by the previous government. Temenuzhka Petkova of GERB-UDF said a 5.7% deficit means that Bulgaria is short of EUR 7.2 billion. In her words, this also means a higher debt and inflation. She said that, as regards the deficit, the government was grossly violating the Public Finance Act and EU regulations. Petkova noted that the government was budgeting higher operating expenditure, part of which it could not justify, as well as increased capital expenditure. According to her, the current priority was fighting civil servants rather than oligarchs. Hamid Hamid of the Movement for Rights and Freedoms stressed that his party was firmly opposed to the government's intention to abolish the automatic mechanism linking salaries in the security sector to the country's average wage. Martin Dimitrov of Democratic Bulgaria (DB) said that Thursday was the last chance to reduce the budget deficit to 3%. According to him, if DB's proposals to cut capital expenditure and increase tax rates for gambling operators were adopted, the deficit could fall below 3%. He said the budget provisions opened the door to signing new contracts under municipalities' capital programmes, but the government had not specified the limit or set rules, meaning that Progressive Bulgaria would choose municipalities it considered close to it. Miroslav Ivanov of  Continue the Change commented that Progressive Bulgaria had decided where a large part of the funding would be allocated, while the Finance Minister had decided to direct most of it towards unspecified municipal projects. Petar Petrov of Vazrazhdane called for EUR 2.9 million earmarked for storing classified US equipment and facilities to be redirected to construction and repair works at the Ogosta dam facilities in Northwestern Bulgaria, which he said were part of national security. Bulgaria Teodora Tsaneva Diana Dukovska https://www.bta.bg/en/news/bulgaria/1172457-president-iotova-eu-commissioner-zaharieva-discuss-eu-s-multiannual-financial-f https://www.bta.bg/en/news/bulgaria/1172457-president-iotova-eu-commissioner-zaharieva-discuss-eu-s-multiannual-financial-f Thu, 23 Jul 2026 15:47:58 +0300 President Iliana Iotova met with European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva, the head of State's Press Secretariat said on Thursday. They discussed the European Union's (EU) Multiannual Financial Framework for 2028-2034. Iotova highlighted the proposed new philosophy for financing EU Member States and expressed reservations about some of the European Commission's proposals. Referring to the planned European Competitiveness Fund, she said it should operate in a way that does not disadvantage smaller and less developed Member States but instead supports their development. The President reiterated her position that the intention to merge Cohesion Policy and the Common Agricultural Policy is concerning, as countries such as Bulgaria would be adversely affected. Iotova also stressed the need for clear criteria when linking the rule of law to the allocation of EU funding. The two shared the view that European competitiveness can be restored through cohesion policies, the development of integrated capital markets, simpler and more flexible procedures for financing under EU programmes, and investment in high technologies and artificial intelligence. Iotova highlighted Bulgaria's potential to become a high-tech hub through the establishment of an artificial intelligence gigafactory. According to her, Bulgaria is one of six countries selected by the European Commission for the construction of such a facility. Iotova and Zaharieva also discussed the need to encourage Bulgarian start-ups to apply for European funding and the opportunities offered by the Horizon Europe programme for innovation and research, including in the field of the defence industry. The President stressed the need for coordination among Member States in this area. The meeting between Iotova and Zaharieva took place at the Presidency. The European Commissioner arrived earlier in the day on a working visit to Bulgaria, during which she also met with Prime Minister Rumen Radev. Bulgaria Momchil Rusev https://www.bta.bg/en/news/economy/1172286-pm-radev-confers-with-eu-innovation-commissioner-zaharieva-outlines-bulgaria-s- https://www.bta.bg/en/news/economy/1172286-pm-radev-confers-with-eu-innovation-commissioner-zaharieva-outlines-bulgaria-s- Thu, 23 Jul 2026 13:55:23 +0300 Bulgaria is working to secure its place in Europe's reindustrialisation and develop an innovative, high-value-added economy, Prime Minister Rumen Radev said during a meeting with European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva, the Government Information Service said here on Thursday. Radev highlighted Bulgaria's ambition to achieve industrial and technological convergence within the European Union and ensure smaller member states have equal access to resources from the new European Competitiveness Fund. The fund is one of the main pillars of the EU's next Multiannual Financial Framework and aims to help close Europe's innovation gap with global competitors, reduce strategic dependencies and boost the competitiveness of the European economy. Zaharieva stressed the need for the EU to create more favourable conditions for innovative companies in Europe to curb the trend of high-tech businesses and talent moving to markets offering more attractive financing and growth opportunities, including the United States. She said a single EU capital market could help address this issue by encouraging research and development funding and providing the necessary financing for startups. The meeting also focused on the importance of competitiveness and innovation for Bulgaria's development, preparations for the EU's next Multiannual Financial Framework, the future of the Horizon Europe programme, and the role of national and regional authorities in building sustainable ecosystems for research, innovation and startup development. Economy https://www.bta.bg/en/news/economy/1172235-forest-fires-set-new-records-across-four-continents-bulgaria-among-worst-hit-in https://www.bta.bg/en/news/economy/1172235-forest-fires-set-new-records-across-four-continents-bulgaria-among-worst-hit-in Thu, 23 Jul 2026 12:36:00 +0300 Forest fires have set new records across four continents over the past two years, with the fire season starting earlier, affected areas expanding and economic and human losses increasing, the Branch Chamber of Woodworking and Furniture Industry said. Official data from the European Commission's EFFIS/Copernicus system, as well as Canadian and US authorities and Bulgarian institutions, point to similar trends. Experts attribute the worsening situation to climate change and the way forests are managed. According to a Bulgarian National Audit Office report citing EFFIS data, Bulgaria was among the 10 EU countries most affected by forest fires in 2025 relative to its territory, losing around 30,000 hectares of forest, much of it within the Natura 2000 protected network. The country's worst fire last year affected more than 4,500 hectares near Ilindentsi in the Pirin Mountains and burned for nearly a month. Nearly 3,500 fires were recorded in Bulgaria in July 2025, almost 20% more than in July 2024. The chamber said only around 5% of forest fires in Bulgaria were caused by natural factors, with the remainder linked to human negligence, actions or inaction. Globally, forest losses caused by fires in 2023 and 2024 were approximately twice the 20-year average, and three times higher in tropical forests. Global carbon emissions from forest fires rose by 60% between 2001 and 2023, while wildfire smoke pollution is associated with more than 1.5 million deaths annually, the chamber said. The European Commission's Joint Research Centre has described 2025 as the worst wildfire season on record in the EU, with 1.08 million hectares burned, nearly twice the 2006-2024 average. Across Europe, the Middle East and North Africa, 2.24 million hectares burned, 20% more than in 2024. Experts say longer and hotter fire seasons, drought, low humidity, strong winds and the accumulation of dry biomass in poorly managed or ageing forests are contributing to the worsening trend. More than 90% of fires in Bulgaria and worldwide are directly or indirectly linked to human activity, the chamber said. The chamber also cited international experience suggesting that active forest management, including the removal of dry vegetation and the planting of climate-resilient species, can help reduce fire risks. It said the accumulation of dry biomass in unmanaged forests can increase fire intensity, while regular forestry intervention is among the most effective tools for limiting wildfire risks. Economy Ivona Velichkova Metodi Yordanov https://www.bta.bg/en/news/economy/1172198-prime-minister-rumen-radev-to-meet-rheinmetall-executives https://www.bta.bg/en/news/economy/1172198-prime-minister-rumen-radev-to-meet-rheinmetall-executives Thu, 23 Jul 2026 12:17:06 +0300 Prime Minister Rumen Radev will meet representatives of the management of Rheinmetall at the Council of Ministers, the government's press service said on Thursday. Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Pulev will also take part in the meeting. Earlier in July, Defence Minister Dimitar Stoyanov said the government had not abandoned plans for an investment in a gunpowder plant and that negotiations between the Economy Ministry and Rheinmetall were forthcoming. Pulev had previously said there was neither a contract nor a framework agreement with the German company, only memoranda. He added that the priority investment was not a genuine project but rather a marketing initiative and lacked financing. Economy Veneta Litkova Konstantin Kostov