Ivaylo Mirchev warned of a risk of sanctions and restrictions on European funding because of the planned increase in net government expenditure in Bulgaria. According to a preliminary assessment by the European Commission, expenditure will increase by 10.1% in 2026, while the maximum increase recommended by the Council of the EU is 4.2%.
The data is related to the assessment of Bulgaria’s budget plan for 2027. According to the published information, a 1.3% increase in net expenditure has been planned for next year, compared with a recommended maximum of 3.4%. The European Commission has asked the Bulgarian authorities to explain how they will ensure compliance with the agreed restrictions and what the reasons are for the deviation in 2026.
In a post addressed to Prime Minister Rumen Radev, Mirchev called for a public response on where the additional budget funds are being directed. He also raised the question of whether citizens and businesses will have to bear a higher tax and social security burden in 2027.
According to Mirchev, the deviation could lead to the procedure against Bulgaria for excessive deficit being escalated. He warned that the possible consequences include a fine from the European Commission, followed by the suspension of European funds and losses amounting to billions of euros.
„And let everyone know what comes next - a fine from the EC for Bulgaria, followed by the suspension of European funds and losses amounting to billions of euros“, Mirchev said.Bulgaria Is Already Subject to an Excessive Deficit Procedure
The European Commission states that Bulgaria is subject to an excessive deficit procedure. The Council of the EU adopted the relevant decisions and a recommendation to the country on July 10, 2026. The procedure provides for an assessment of the measures taken and possible escalation if the country fails to implement the recommendations within the specified deadlines.
The official documents of the European Commission contain no confirmed decision to impose a fine or automatically suspend European funds. Mirchev presented these consequences as a possible scenario if the procedure is escalated.
The Ministry of Finance explained that 2026 began without an adopted state budget, which limited the possibilities for expenditure control. Mirchev, however, said that those in power were on course to cause serious damage and announced that he was ready to protest.
„With your incompetence, you are on the verge of ruining everything, and soon we will be out in the square with the people“, he wrote.
Sources: dunavmost.com, business.dir.bg, investor.bg