European Commission’s Five Recommendations to Bulgaria: Prioritizing Defense Spending and Accelerating Recovery and Resilience Plan Implementation

The European Commission (EC) has provided five recommendations to Bulgaria in its spring report as part of the European Semester. These include strengthening collective expenditure and defense readiness, ensuring timely reforms and investments outlined in the Recovery and Resilience Plan, and implementing Cohesion Policy programs. Additionally, the EC advises creating conditions conducive to enhancing competitiveness by improving public administration’s efficiency and capability. The Commission highlights the necessity of reducing reliance on fossil fuels.

According to the EC, Bulgaria’s economic growth accelerated to 2.8% in 2024, driven by private consumption. The increase in nominal incomes last year was bolstered by rising employment, wages, and social transfers. Coupled with declining inflation, this trend resulted in higher real disposable income and private consumption, supported by robust credit activity. The Commission forecasts that the real Gross Domestic Product (GDP) growth will decelerate to 2% in 2025 and 2.1% in 2026, while projected inflation, as measured by the Harmonized Index of Consumer Prices, is expected to rise to 3.6% this year and 1.8% next year.

The report emphasizes that improved management of public investments and services could stimulate private investments with significant added value. Enhancing public procurement processes and boosting the effectiveness of regulatory bodies through independence and expert resources is essential, according to the EC’s recommendations.

Moreover, the Commission stresses the necessity of increased efforts in research and innovation, as well as investments in clean technologies. The development of energy infrastructure, including its digitalization and energy storage capacity, is also crucial. The need for advancements in electricity market liberalization and the removal of price caps on industrial electricity is noted.

Lastly, the EC calls for more investments in sustainable transport and accelerated initiatives to support the green transition. It underscores the importance of addressing regional disparities and fostering social cohesion, particularly through improved education and better integration of vulnerable groups into the labor market. (June 4, 2025)