Plugchieva warns of looming budget crisis for Bulgaria

Bulgaria’s 2025 budget faces severe implementation problems, with spending exceeding targets while revenue falls short, diplomat Meglena Plugchieva told BNT on Sunday. The government takes loans to cover salaries for a growing bureaucracy serving just 6.5 million citizens, raising concerns about fiscal stability ahead of the country’s first eurozone budget.

Plugchieva warned that authorities missed Saturday’s deadline to submit the 2026 budget to the European Commission for review. The delay signals potential trouble for financial stability as the nation prepares for the adoption of the euro.

Bulgaria’s economy struggles due to its heavy dependence on Europe, particularly Germany’s automotive sector. More than 65 percent of Bulgarian trade flows through the European Union, leaving local suppliers vulnerable as German manufacturers cut production after five years of stagnation.

The Economy Ministry has failed to help Bulgarian companies that supply German automakers and must reduce staff, Plugchieva said. These firms need government support to find alternative work and maintain operations through the downturn.