Politicians slammed as Bulgaria nears debt cliff

Bulgaria risks severe financial instability through reckless spending and mounting debt, according to Kuzman Iliev, an economic analyst who leads the Bulgaria Can party. Speaking with Bulgarian National Radio on Tuesday about the proposed 2026 budget, Iliev said authorities lack strategic vision and continue pushing the nation toward unsustainable borrowing levels despite warnings issued since March by himself and others.

Iliev compared government finances to a household relying on payday loans to maintain appearances while debt grows each month with rising interest charges. He told Horizont radio that budget projections appear disconnected from reality and accused lawmakers of abandoning accountability standards that should guide public communication about fiscal matters. The analyst criticized proposed dividend tax hikes as sending negative signals to international investors that Bulgaria penalizes success. Higher social security levies represent the worst approach to raising revenue because companies will respond by cutting jobs and reducing investment amid fierce competition for workers, he said.

Economic expansion stems from borrowing and consumption rather than productive activity, Iliev warned. He predicted that authorities would eventually sell state assets to service debts, sacrificing national sovereignty. The extended transition period before euro adoption allowed businesses to increase prices prematurely, while political insiders benefit as ordinary citizens bear the costs, he added.