Strengthening defense spending and urgently accelerating the implementation of the Recovery and Resilience Plan are at the forefront of the five recommendations from the European Commission to Bulgaria

The European Commission (EC) issued five recommendations to Bulgaria in the spring package of documents published within the framework of the European Semester. Among them are strengthening common spending and defense readiness; timely completion of the reforms and investments outlined in the Recovery and Resilience Plan; implementation of the programs under the Cohesion Policy. The Commission also recommended creating favorable conditions for increasing competitiveness by improving the functioning and capacity of public administration. The EC emphasizes that it is necessary to reduce dependence on fossil fuels.

Economic growth in Bulgaria accelerated to 2.8% in 2024 thanks to private consumption, the European Commission recalls in the accompanying report on the Bulgarian economy. The strong increase in nominal incomes last year was supported by the ongoing upward trend in total employment, wages, and increased social transfers. Combined with the decline in inflation, this trend led to an increase in both real disposable income and private consumption, further supported by strong credit activity, the EC report states. The Commission forecasts that the growth of real Gross Domestic Product (GDP) will slow to 2% in 2025 and to 2.1% in 2026, while projected inflation, measured by the Harmonized Index of Consumer Prices, will accelerate to 3.6% this year and 1.8% next year.

The EC report also indicates that better management of public investments and services could encourage private investments with high added value. It is also important to improve public procurement procedures and enhance the effectiveness of regulatory bodies by ensuring their independence and providing the necessary expertise and resource capacities, the European Commission’s recommendations state.

The Commission also draws attention to the need for more efforts in the field of research and innovation, as well as increasing investments in clean technologies. The development of energy infrastructure is also significant – including its digitalization and increasing energy storage capacity. The need for progress in the liberalization of the electricity market and the removal of price caps on electricity for enterprises is noted.

Another recommendation is related to sustainable transport – more investments in ecological infrastructure and accelerated actions to support the green transition are needed, the EC points out. The Commission also emphasizes the importance of reducing regional disparities and promoting social cohesion, including through improving education and better integration of vulnerable groups in the labor market. (June 4, 2025)