The EC will assess the 2027 budget by the end of November

The European Commission (EC) will have until November 30 to assess how well Bulgaria has managed to cut spending in its draft budget for next year. This became clear from the 2027 Budget Plan published by the Ministry of Finance (MF). It states that:

No later than November 30, the EC assesses the compliance of the budgetary policies set out by the member states in their Budget Plans with the EU’s fiscal rules, as defined in the Stability and Growth Pact (SGP), and, if necessary, issues recommendations for corrective measures that the member states must take into account in their budget for the coming year.”

We would like to remind you that this past summer the European Commission launched an excessive deficit procedure against Bulgaria due to the rapid growth in government spending; consequently Brussels requested to see what measures our country would propose to address its fiscal problem.

This decision is due to the EC’s forecast of a budget deficit for Bulgaria in 2026 amounting to 4.1% of GDP, which is expected to continue to exceed 3% of GDP in 2027,” the Ministry of Finance explained.

Separately eurozone member states are subject to a higher level of scrutiny compared to other EU countries, with this enhanced monitoring including an assessment of each eurozone member state’s fiscal policy and structural reforms.

It was precisely under this monitoring framework that Bulgaria was required to submit its budget plan to Brussels by October 15.

A key instrument for coordinating the economic policies of eurozone countries is their draft budget plans (DBPs) for the coming year,” the Ministry of Finance clarifies.

The drafts include an overview of expected revenues and expenditures, planned reforms and investments as well as measures to achieve fiscal sustainability planned for the coming year. The draft budget plans should also take into account the specific recommendations made to the countries within the framework of the European Semester.