Bulgaria is expected to be placed under the European Union’s excessive deficit procedure next week, just months after joining the eurozone, Prime Minister Rumen Radev said on Friday.
The formal launch of the procedure is expected as part of the European Commission’s spring economic package on June 3.
Radev accused the previous centre-right government of manipulating fiscal data to secure Bulgaria’s eurozone entry on January 1, 2026, after a bitter domestic debate over whether the country met the convergence criteria.
“They lied to push Bulgaria into the euro,” Radev told reporters after returning from Brussels.
Under the EU’s excessive deficit procedure, member states that breach the bloc’s fiscal rules must bring their budget deficit below 3% of GDP within a set deadline and face closer monitoring by the European Commission.
The Commission’s spring forecast projects Bulgaria’s deficit at 4.1% of GDP in 2026.
Bulgaria is also struggling with the highest inflation rate in the eurozone, which has pushed up food prices and intensified political pressure on the government.
If confirmed, Bulgaria would become the first country to enter the eurozone and face the EU’s corrective fiscal mechanism within months of accession.
It would also be Sofia’s first excessive deficit procedure since its previous case was closed in 2012.
The European Commission declined to comment before publishing its European Semester package.
“The Commission will provide its assessment in the context of the European Semester next week and will not comment further at this stage,” a spokesperson said.
Former finance minister Temenuzhka Petkova from GERB rejected Radev’s accusations, saying Bulgaria stayed within the 3% deficit limit in 2025 because of the EU’s defence-spending flexibility clause.
She said any deterioration in the fiscal outlook was linked to decisions taken by the caretaker administration and delays in planning the 2026 budget.
The expected procedure comes days after Brussels unlocked €370 million in frozen Recovery Fund money for Bulgaria, while keeping another €3 billion blocked pending judicial and anti-corruption reforms.
The Commission’s spring package is also expected to update the status of other EU countries already under the excessive deficit procedure, including France, Hungary, Italy and Poland.