The state budget should support more balanced growth driven by sustainable consumption, stronger investment and exports, and higher value added, according to an opinion titled “European Semester 2026: Challenges and Priorities for Bulgaria”, adopted by the Economic and Social Council (ESC) on Wednesday.
“Positive growth, high employment and low unemployment provide a favourable foundation, but they do not remove the constraints on Bulgaria’s convergence: low productivity, insufficient private investment and innovation, demographic decline, skills shortages and significant regional disparities,” the document says.
The ESC believes that the country-specific recommendations for Bulgaria should be clearly reflected in the implementation of the Medium-Term Fiscal-Structural Plan, budget planning and the relevant structural reforms, as well as in the next annual progress report.
The Council expresses serious concern over the deterioration of the budgetary position. The advisory body also says that correcting the excessive deficit by 2029 should be based on sustainable structural measures, a review of spending efficiency and the preservation of investment with a proven contribution to growth.
The ESC acknowledges the need for timely fiscal adjustment but stresses that the composition of the budget consolidation programme is crucial. “Improving the budget balance should not lead to slower economic growth as a result of cuts in capital expenditure or funding for education, research and development, or preventive healthcare that has a proven contribution to economic growth and public welfare. The necessary balance between revenue and expenditure measures should be determined on the basis of an assessment of their economic, social and distributional impact,” the opinion says.
The Council also adopted an analysis of the socio-economic impact of youth policies in Bulgaria. It examines the governance and financing of youth policy, the impact of youth employment measures and opportunities for better inclusion of young people, including more than 100,000 who are not in employment, education or training.
The ESC identifies the lack of systematic data collection and monitoring of results as a key problem and recommends better monitoring and assessment of policy impact. It also highlights the need to make better use of the potential of youth centres, organisations and youth workers to activate and include vulnerable groups.
On Tuesday, the ESC organized a forum on improving the effectiveness of social support. The event was part of a task assigned to the ESC by the Council of Ministers to hold a public debate on the challenges and risks related to codifying legislation in the field of social support and its impact on the adequacy of social payments.
Economic and Social Council Calls for Budget Structure Supporting Investment, Exports and Higher Value Added THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-30 11:37:39
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