Parliament adopted at first reading amendments to the Fiscal Council and Automatic Corrective Mechanisms Act. The bill, submitted by the Council of Ministers, was supported by the votes of “Progressive Bulgaria”.
The amendments transpose a European directive on the activities of fiscal councils and are related to Bulgaria’s membership of the eurozone and the implementation of the new European fiscal framework. The bill was submitted to Parliament on 26 October 2026.
New functions for the Fiscal Council
Under the amendments, the Fiscal Council will have to approve the finance minister’s spring and autumn macroeconomic forecasts. This must be done within five working days of the forecasts being submitted.
The council’s analytical functions are also being expanded. Its assessments and opinions will not be binding, but if the Council of Ministers does not accept them, it will have to provide written reasons.
Deputy Finance Minister Metodi Metodiev defended the proposal to abolish automatic corrective mechanisms at national level. In his words, retaining them would lead to the parallel application of two different regimes which, under certain circumstances, could send conflicting signals about the fiscal correction required.
“The abolition... does not mean a weakening of fiscal discipline,” Metodi Metodiev said.He pointed out that the European framework retains the obligations to correct excessive deficits and provides additional mechanisms for monitoring, prevention and control in the event of deviations from fiscal rules.
Dispute over national corrective mechanisms
Democratic Bulgaria objected to the removal of the national deficit corrective mechanisms. According to the MPs, this creates a risk to the country’s financial stability.
Martin Dimitrov said that abolishing the mechanisms would also remove additional guarantees for a balanced budget.
“The goal should be a balanced budget, and that is why national corrective mechanisms are needed,” Martin Dimitrov said.Following the first-reading vote, the bill is due to be considered at second reading as well. The texts may be amended before its final adoption.
Sources: bnrnews.bg