In the first two months after Bulgaria's accession to the eurozone, foreign direct investments in the country increased significantly, according to BNB data.
Their total volume reached over 809 million euros, which is an increase of 87% on an annual basis, and in February alone the growth was almost double, BNT notes.
The main contribution to the increase comes from the reinvested profits of already established foreign companies, which is interpreted as a sign of increased confidence after the introduction of the euro.
Among the investors is a global Turkish company for high-voltage transformers and generators. The company currently employs 400 people, but with the 65 million euro expansion of production, another 100 will be hired.
Murat Yurekten, CEO: “We have a large production facility in Turkey, where 1,500 people work, but we have exhausted the available territory for its expansion. That is why we wanted to grow outside the country. We were already an international company with plants in India and Slovakia, and when we opened the fourth factory, we chose Bulgaria because it is close to Turkey. We can drive from the Turkish base in 6 hours, which is very convenient for us.“
Another global company with German roots, which has had a refrigerator plant in our country for 20 years, is investing 90 million euros in a new factory for aerospace and transport products.
It is surprising that frequent parliamentary elections are not viewed negatively by investors, as they have received institutional support from the Investment Agency.
Dieter Flantzer, CEO: “We saw not only political stability, but also good education of people. We are not only opening jobs for mass production, because we are not only transferring production, but also the engineering part of some activities. That is why we were looking for highly qualified personnel and this was key. Bulgaria supports this process. We found a lot of qualified people and this is very attractive for us in the long term.“
The company currently employs 2,400 people, and by 2030 the new enterprise will need about 1,000 more employees.
Despite the strong growth, new investments in the form of equity capital remain weak, which means that the increase is due more to the expansion of existing businesses than to the entry of new investors.
However, the Chamber of Commerce is optimistic.
Stanislav Popdonchev, Deputy Chairman of the Bulgarian Industrial Association and Chief Financial Officer: “In the first two months of this year we are talking about growth of more than two times compared to the same period last year and this is a signal that membership in the eurozone gives the positive signal and confidence that foreign investors expect.“
“It is important also to adopt a regular state budget for 2026 and to start preparing the 2027 Budget. This framework is the basis of a predictable and calm business environment that allows enterprises to develop and invest their capital calmly.“
It is important for business to adopt a regular state budget for this year and to preserve the principles of the market economy - without a price ceiling and mark-ups, with effective work of control bodies and preservation of the tax and social security model.