The European Commission has given the green light to the fourth payment in a row under the National Recovery and Resilience Plan. The EC approved the payment of nearly 1 billion euros to Bulgaria, and the money will arrive at a critical moment for the country due to the low level of the fiscal reserve. The funds will allow for the timely payment of investments under the PVP, the implementation of which should be completed by the end of August at the latest.
This was announced at a briefing in the Council of Ministers by Deputy Prime Minister for EU Funds Atanas Pekanov.
„This is a vital breath of air for the country's budget and a key step for all investments important to us. We have set the acceleration of work on the PVP as a top priority. During the EC's visit two weeks ago, we held important talks. "Today's result shows that when there is clear political will and good coordination and consistency, Bulgaria can protect its interests," said Pekanov.
According to him, the work done on anti-corruption legislation and the rule of law were key. The Deputy Prime Minister explained that the establishment of an independent CPC and the strengthening of accountability of the Prosecutor General were key.
Bulgaria will be given additional time to implement the remaining commitments, while it will receive a partial payment for the milestones and targets that have been successfully met, Nova TV recalled.
The Commission has sent its preliminary assessment of Bulgaria's implementation of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), which has four weeks to submit its opinion.
In parallel, the Commission has informed Bulgaria of the reasons why it considers that the milestones and targets mentioned above have not been satisfactorily met. Bulgaria has one month to respond to this assessment.
If, following Bulgaria's response, the Commission confirms its assessment that the milestones and targets in question have not been satisfactorily met, it will withhold the relevant part of the payment. The amount of the withholding will be determined based on the significance of the unmet milestones and target, in accordance with the methodology set out in the Commission's communication of 21 February 2023. Bulgaria will then have until 31 August 2026 to meet the remaining commitments. Upon successful implementation, the withholding will be lifted and the funds will be disbursed.
The disbursement of funds to Bulgaria for the already approved milestones and targets can be made after a positive opinion from the EFC and the adoption of a payment decision by the Commission.
We recall that Bulgaria submitted its fourth payment request for EUR 1.1 billion on 2 April 2026. Bulgaria's Recovery and Resilience Plan includes a wide range of investment and reform measures financed by grants of EUR 6.17 billion.
The reforms and investments related to this payment request will bring about positive change for citizens and businesses in areas such as the fight against corruption, the digitalisation of administrative justice, vocational education and training, support for small and medium-sized enterprises, sustainable transport, decarbonisation and renewable energy, agriculture and outpatient care.
The flagship measures included in this request for payment, are:
- » Anti-corruption measures, including the adoption of legislation to establish a politically and financially independent Anti-Corruption Commission with functions to prevent and combat corruption among persons holding public offices, as well as the introduction of rules to regulate lobbying activities.
- » Measures to decarbonize the energy sector. These include improving the corporate governance of state-owned energy companies by restructuring the Bulgarian Energy Holding (BEH), in order to avoid the risk of cross-subsidization of coal-related activities and to align its structure with the future needs of the energy market in Bulgaria.
- » A National Decarbonization Fund was established to support the energy efficiency of buildings, a fund manager was appointed and rules for its operation were introduced.
- » Promoting renewable energy by supporting nearly 1,400 domestic solar hot water systems or photovoltaic systems for electricity production in households.
- » A new public service contract for public rail transport aimed at improving quality, accessibility and passenger use, alongside a modernised legal framework to promote zero- and low-emission transport, including new rules on electric mobility and low-emission zones.
Unmet key milestones and targets
The Commission found that one key milestone. It concerns the entry into force of legislation on water supply and sanitation, has not been fully implemented. Bulgaria also declared that one target related to support for the cultural sector has not yet been achieved, but plans to meet it by the deadline of 31 August 2026. Furthermore, the wording of one of the key milestones in the area of public transport is not sufficiently clear and Bulgaria was invited to submit a reasoned request for a revision of its plan.