Bulgaria on Track to Adopt the Euro, Supporting the Economic Outlook

Pro-russsian President Rumen Radev Has Backed The Idea of ​​A Referendum, But The Right to Call One Rests with Parliament, Whore The Majority of Pro-Euro Parties have. Radev Has Referred the Matter to the Constitutional Court, But This Is Unlikely to Disrupt The Europe-ACCCESSION TIMETABLE.

Fiscal Position Remains Sound, ALTHOUGH DEFICITS HAVE RISEN Another Concern for Accession Has Been The Government’s Fiscal Position. The Country Has A Record of Moderate Budget deficits and comparatic Low Public Debt. But Recent Increases in State Spending on Salaries, Pensions, Defense and Measures to Ease The Cost-Off-Living Crisis Have Challenge this Record.

Neverthaless, The General Government deficit was uncanged at 3.0% of GDP Last Year from the Previos Year Due to Strong Revenue Growth (Figure 2). The Authoritities have committed to a budget deficit of 3.0% of gdp this year. General Government Debt Will Rise Steadily, Reaching 34% of GDP by 2030 From 24% at End-2024, Thought Remaining Among the Lowest in the EU.

The ec favourably assessed Bulgaria’s Medium-Term Fiscal-Structural Plan for 2025-2028 Early Last Month, WHICH is A POSITIVE STEP FOR EURO ADOPTION, Suggesting Public Financeses Reabel.

Figure 2: Fiscal Metrics Remain Sound, Even Thought Deficits Are Wider and Debt Is IncreASING
% of GDP