Bulgaria must prepare for a period of higher inflation, a sustainable budget deficit and slowed economic growth against the backdrop of rising unemployment and government debt. This is shown by the European Commission's spring economic forecast for 2026 and 2027.
The good news, according to the analysis, is that the Bulgarian economy will not fall into recession in the next two years. This was commented by Konstantin Prodanov from “Progressive Bulgaria“, chairman of the Temporary Committee on Budget and Finance.
According to him, the government is preparing an optimization of the state administration, but it is not about “massive layoffs“.
“The idea is to seek the maximum optimization of the administration's activities, and not simply to cut some people“, said Prodanov.
He specified that first the vacant positions, working pensioners and civil contracts will be analyzed, and a functional analysis will be conducted in each department.
According to him, some administrations may even end up hiring new employees, especially in institutions such as the Commission for the Protection of Competition and the Commission for the Protection of Consumers, where more powers and work are expected.
Prodanov admitted that the financial situation of the state is “extremely severe“. According to him, there are about 2.5 billion euros in unpaid debts, over 1 billion euros in payments to municipalities and between 3 and 3.5 billion euros related to the Recovery and Resilience Plan.
“There is a lot of work ahead to fit into this deficit“, he said.
The ruling majority also confirmed that in the coming months it will most likely be necessary to draw down new state debt.
According to Prodanov, the measures against price increases will not completely solve the problem of inflation, but they will limit unfair trade practices and provide more transparency in pricing.
“Our goal is not to deform the market, but to restore its efficiency“, he emphasized.
He also commented on the opposition's criticism of the new rules for the work of parliament, stating that the ruling majority wants The National Assembly should return to its “original function as a legislative body“, without unnecessary protracted procedures.