AGP Executive Report

EU Fiscal Pressure: Finance Minister Galab Donev told MPs the European Commission fully intends to move forward with an excessive deficit procedure against Bulgaria, after a mission reviewed Recovery and Resilience Plan implementation and public finances. Public Finance Oversight: The National Audit Office blocked BGN 3.37 bln in accounting errors in 2024 public sector statements, with most misstatements corrected. SME Funding Scrutiny: Deputy PM Atanas Pekanov said an extraordinary audit of an SME support procedure was ordered over selection concerns, with results to be made public once finished. Competition & Prices: Parliament’s Budget Committee approved fines for monopolies charging excessive prices and an electronic register to spot market distortions. Justice System Snapshot: An EC justice assessment ranks Bulgaria first in court spending as a share of GDP, while noting only mid-level per-capita performance and concerns about perceived interference. Migration & Home Affairs: Interior Minister Ivan Demerdzhiev met EU and Greek counterparts on border security, returns and anti-smuggling cooperation. Regional Diplomacy: PM Rumen Radev will attend the EU–Western Balkans summit in Tivat, with talks expected to cover enlargement, gradual integration and security. Energy Corridors: Bulgaria says gas infrastructure works for the Greece–Ukraine vertical corridor are on schedule, including capacity upgrades.

EU Legal Clash (Huawei): The European Parliament moved closer to blocking Belgian prosecutors by voting to keep immunity protections for Bulgarian Renew Europe MEP Nikola Minchev and three other lawmakers tied to the Huawei lobbying probe, a fresh blow in the fight between EU institutions and national justice. Parliament Oversight (Oil & Petroleum): Bulgaria’s lawmakers adopted at second reading amendments requiring the special commercial administrator to file monthly reports on oil and petroleum companies, with court challenges possible if actions violate the law. Investment Policy Reset: Parliament also approved changes to the Investment Promotion Act, creating an Investment Coordination Council under the Council of Ministers to coordinate investment policy and set a “low-risk” screening approach for investors from selected jurisdictions. Defence Diplomacy (Hemus): Bulgaria’s Defence Minister Dimitar Stoyanov met Lebanon’s counterpart at Hemus 2026, agreeing to deepen security cooperation and accelerate a bilateral defence agreement, including training for Lebanese personnel in Bulgaria. Regional Connectivity (Bulgaria–Greece): Bulgaria and Greece used Prime Minister Rumen Radev’s Sofia meeting with Kyriakos Mitsotakis to push defence ties and energy/transport links, including the Vertical Gas Corridor and future green corridors. Olympic Committee Update: Vesela Lecheva was registered as President of the Bulgarian Olympic Committee after a year-long legal dispute, ending IOC and ministry funding suspension. Sports & Society: Sofia will host the Down Syndrome World Championships (June 13–19) with 400+ athletes from 27 countries.

Climate & Cities: Sofia kicks off its first climate festival, Heat Fest 2026, at Banski Square with a focus on urban adaptation, green infrastructure and making the city cooler, featuring EU Commissioner Jessica Roswall and dozens of partner organizations. Parliament & Water Policy: Lawmakers adopted on second reading amendments to the Water Act under the Recovery and Resilience Plan, aiming to secure minimum water and sanitation costs, introduce differentiated pricing for households and non-households, and push consolidation around single operators per territory. Justice & Democracy Oversight: Bulgaria’s Constitutional Court delegation is in Paris for talks with France’s Constitutional Council on political rights, election legality, party financing oversight and freedom of expression amid fake news risks. Defence & Industry: HEMUS 2026, Bulgaria’s major defence equipment exhibition in Plovdiv, opens with President Iliana Iotova and Defence Minister Dimitar Stoyanov, plus a flyover by F-16 Block 70 jets and a forum on defence capabilities and Bulgaria’s role in the European ecosystem. Security & Crime Fighting: Europol-led Operation KRATOS, coordinated with Bulgaria, dismantled nine illegal streaming crime groups and led to 29 arrests, removing over 27,000 piracy links. Foreign Policy & Economy: Foreign Minister Velislava Petrova meets OECD Secretary-General Mathias Cormann in Paris, reiterating Bulgaria’s push to complete OECD accession’s technical phase in 2026. Energy Diplomacy: Bulgaria’s water-and-defence week also includes regional energy moves: Azerbaijan’s Absheron gas deal with Turkey (33bn cubic metres over 15 years from 2029) is positioned as the financing “unlock” for full-scale development.

EU Fiscal Reset for Energy Shock: The European Commission eased EU spending rules to give member states more room until 2028, while also adding Bulgaria to the list facing an excessive-deficit track. Bulgaria’s Deficit Pressure: Finance Minister Galab Donev said a new debt ceiling of €3.8bn was approved and warned “unpopular measures” may be needed to cut the deficit toward 3%. Pensions Update: From July, pensions rise 7.8% under the “Swiss rule,” while the COVID supplement stops for newly granted pensions after July 1. OECD Accession Check: Foreign Minister Velislava Petrova said Bulgaria has completed OECD reviews in 18 of 25 working bodies, with remaining steps needing legislation. Lukoil Oversight Change: The government replaced the special commercial administrator of Lukoil assets in Bulgaria, appointing Evgeni Simeonov. Defense Industry Link: Bulgaria signed an amendment with Lockheed Martin to expand F-16 Block 70 industrial cooperation. Media Cooperation: Bulgaria’s media regulator met Uzbekistan’s news agency to discuss disinformation and strengthen cooperation. Culture & Diplomacy: A Gutenberg Bible and Cyrillic printing exhibition opens in Bratislava under Bulgaria’s patronage, while Bulgaria’s Bookfest guest-of-honour push includes Romanian-language BTA materials and book donation calls.

EU Fiscal Pressure on Bulgaria: Brussels is set to issue a new round of warnings over widening deficits, with Bulgaria expected to be formally reprimanded just months after eurozone entry. Parliament Budget Fight: GERB-UDF says it won’t back government budget-extension measures, including scrapping COVID pension supplements and cutting party subsidies, arguing the fixes hit vulnerable groups. Water and Oil Sector Rules: Lawmakers adopted amendments to the Water Act and approved changes to oil-sector regulation, both tied to implementing national commitments. Justice and Courts: Justice Minister Naydenov vowed to defend free, transparent elections for Supreme Judicial Council seats from the professional quota. Illegal Construction Crackdown: Interior Minister Demerdzhiev said inspections in Varna’s Baba Alino area won’t be limited, as investigations continue. Foreign Policy: Foreign Minister Petrova confirmed Bulgaria backs Moldova’s EU path and discussed the Taraclia District. International Commemoration: Bulgaria marked Hristo Botev’s 150th death anniversary with ceremonies at home and abroad, including wreath-laying in Budapest and Okayama. US-Bulgaria Military Diplomacy: The US nominated Douglas Holder as ambassador to Sofia, while Bulgaria’s stance on US aircraft access remains tied to a visa dispute.

Budget Showdown: GERB-UDF says it won’t back government amendments to the budget extension law, calling the focus on cuts to vulnerable groups and the removal of COVID pension supplements “unacceptable,” while Vazrazhdane warns the state is sliding into a debt crisis by borrowing to fund current spending and doing little on inflation or judicial reform. Debt Ceiling Reversal: Incumbents withdrew a proposal to raise the government debt ceiling by up to EUR 3.8bn after criticism, though other measures like scrapping the COVID supplement and reducing party subsidies remain on the table. Competition Law Clash: AmCham Bulgaria opposes proposed changes to the Protection of Competition Act and Consumer Protection Act, arguing they would restrict free enterprise and harm consumers and traders. Energy & Business Talks: PM Radev met employers’ organizations, stressing dialogue on competitiveness and energy-intensive industry pressures, including how to use EU funding and electricity security funds without extra budget strain. US Aircraft Row: Bulgaria plans to end the stay of US military planes in Sofia by end-June over a visa dispute, with Radev citing national priorities. Eurozone Inflation: Eurostat data put eurozone inflation at 3.2% in May, with energy prices driving the rise; Bulgaria recorded the highest rate in the bloc at 6.3%. Diplomatic Commemorations: Bulgarian diplomats marked June 2 with tributes to Hristo Botev in North Macedonia and Serbia.

Eurozone & Central Banking: BNB Deputy Governor Karina Karaivanova said Bulgaria’s euro adoption is now about how the country uses the Eurosystem to build “trust, competitiveness and resilience,” warning that digital euro, AI and automation must be handled together. Public Finance: The Finance Ministry expects a EUR 2.5bn cash-basis deficit by end-May (about 2% of GDP), with tax receipts up and a key change in BNB dividend timing affecting non-tax revenue. Administrative Reform: Deputy PM Alexander Poulev kicked off coordination for administrative reform, aiming to cut paperwork, reduce processing times, expand digital services and one-stop solutions. Parliament & Party Funding: Progressive Bulgaria MPs floated cutting the per-vote state subsidy for parties (from EUR 4.09 to EUR 3), scrapping the COVID pension supplement and revising the government debt cap. Health Oversight: The Health Ministry dismissed EAMS director Atanas Atanasov, appointing Ivanka Dineva to push faster digitization and more effective inspection oversight. Security & Defence: Defence Minister Dimitar Stoyanov reaffirmed the 5% of GDP NATO target by 2035, with AMRAAM purchases described as only authorized, not funded. Crisis Preparedness: Bulgaria will test the BG-ALERT system on June 2 and activate sirens for Botev Day observance. National Memory: President Iliana Iotova marked Botev’s legacy in Vratsa, tying the commemorations to civic unity and a minute of silence.

Defence & Budget Talks: Defence Minister Dimitar Stoyanov says Bulgaria must hit the NATO target of 5% of GDP for defence by 2035, with 3.5% for direct military spending and equipment and 1.5% for cyber, mobility and defence infrastructure. Social Policy: Progressive Bulgaria denies plans to cut paid maternity leave and benefits, saying any focus is instead on expanding childcare capacity and later adding incentives for early return to work. Parliament Finance Package: Incumbents propose cutting the per-vote state subsidy for parties, removing the COVID pension supplement, and revising the government debt cap, with a budget likely approved in early August. Administrative Reform: Deputy PM Alexander Poulev kicks off coordination on administrative reform aimed at fewer documents, shorter processing times, more digital services and one-stop-shop solutions. Health Oversight: The Health Ministry dismisses EAMS director Atanas Atanasov to speed up digitisation and improve inspection effectiveness, naming Ivanka Dineva as his replacement. Public Safety Systems: A national test of the BG-ALERT early warning system is set for June 2, alongside siren activation for the Day of Botev and Those Fallen. Crime & Security: Authorities seize over 250 kg of marijuana in Yambol and arrest four after finding a helicopter suspected in drug trafficking. EU Governance & Reforms: Parliament chair Mihaela Dotsova tells EU diplomats the 52nd National Assembly priorities include NRRP-related laws, EU directive transposition and predictable rules for SMEs, with an August 31 deadline in view. Energy Diplomacy: At Baku Energy Week, Bulgaria is tied to regional electricity and gas corridor plans, while Bulgaria finalises a project to deliver Azerbaijani gas to Southeast Europe. International Relations: Bulgaria reconfirms support for Moldova’s European path in talks between foreign ministers. Civic & Culture: President Iliana Iotova and officials mark Botev’s legacy and UNICEF’s 20 years in Bulgaria, while schools and BTA launch 80th-anniversary coverage of the Botev March tradition.

Judicial Accountability: Interior Minister Ivan Demerdzhiev demanded institutions explain inaction over Varna illegal builds and said SANS’ 2025 expulsion order against Oleg Nevzorov was based on “sufficient information,” while Justice Minister Nikolay Naydenov said a police officer filed an alert alleging pressure and personal-favour requests by Plovdiv’s appellate prosecutor. Prosecutor’s Office Shake-up: Demerdzhiev also said Borislav Sarafov’s exit as acting Prosecutor General/NIS chief shows backers lost influence, arguing “reform” means changing how the prosecution works, not just personnel moves. Local Governance & Procurement: Demerdzhiev said Kardzhali Mayor Erol Myumyun was questioned after document collection tied to irregularities in a dog shelter procurement, and claimed a dormant prosecution case was revived. EU Fiscal Pressure: Bulgaria is set to breach the 3% deficit threshold and face the Excessive Deficit Procedure, with Labour Minister Efremova stressing social payments are legally protected while spending effectiveness will be reviewed. Eurovision 2027 Logistics: Bulgaria is already booking accommodation for Eurovision 2027 in Sofia, with early demand and possible rent overheating in central districts. Sports Spotlight: Stiliyana Nikolova led Bulgaria at the Varna European Rhythmic Gymnastics Championships with one gold and two silvers, as the national team won eight medals overall.

EU Fiscal Pressure: Bulgaria is set to breach the 3% deficit threshold and face an excessive deficit procedure, with Labour Minister Efremova saying social payments are legally protected while the government reviews spending efficiency. Budget Politics: Culture Minister Evtim Miloshev denies a 10% culture cut, blaming a misread of finance instructions tied to broader public administration reform. Foreign Policy Clash: Prime Minister Rumen Radev moves to end the US aircraft refuelling/logistics arrangement at Sofia Airport by end-June, linking it to Washington’s refusal of visa-free travel for Bulgarians. Social Response to Disasters: After central Bulgaria floods, over 220 aid applications were filed; inspections ran in Veliko Tarnovo, Gabrovo, Sevlievo and Dryanovo, with payments expected soon. National Identity & Education: Education Minister Georgi Valchev and BTA DG Kiril Valchev used April Uprising commemorations in Vratsa to argue Bulgaria must “reopen the conversation” about its place in Europe and invest in youth. Public Life & Institutions: BTA says it will digitize archives of the annual “In the Footsteps of Botev’s rebel detachment” marches, while the Defence Ministry reports US troop/equipment transit across Bulgaria on June 1-2.

Eurozone Fallout: Bulgaria is set to face an EU excessive deficit procedure after its 2025 deficit hit 3.5%, with the European Commission expected to publish its June 3 report—raising the stakes for Prime Minister Rumen Radev’s government and triggering fears of funding freezes and fines. Budget Politics: Radev says the numbers were “massaged” to pass euro entry, while GERB-UDF warns against “misinterpretations,” as Brussels forecasts deficits staying above 4% in coming years. Cost-of-Living Pressure: Economy Minister Alexander Poulev says the cabinet is using a temporary state guarantee to stabilize mandatory motor third-party liability insurance and curb unfair practices, aiming to ease pressure on insurance, food and fuel prices. Parliamentary Oversight: The National Network for Children calls for restoring a dedicated parliamentary committee on children and family after it was merged into a broader labour/demographic/social panel. Diaspora & Talent: At the “Bulgaria Across Five Oceans” forum, actor Dimitar Marinov urged Bulgarians abroad to return, while alumni leaders discussed building stronger school and university networks. Civil Society Appointments: Deputy PM Ivo Hristov was named chair of the Civil Society Development Council and also leads the national anti-trafficking commission. Tourism Push: Tourism Minister Ilin Dimitrov backed year-round tourism and said Eurovision boosted visibility, with plans to bring more journalists in 2027.

US-Bulgaria Tensions: Prime Minister Rumen Radev says Sofia will not extend U.S. military aircraft and tanks’ stay at Sofia airport beyond end-June, citing Washington’s failure to approve visa-free travel for Bulgarians. EU Budget Pressure: Radev warns the European Commission will trigger an excessive deficit procedure on June 3, with possible monitoring and sanctions, as GERB’s Temenuzhka Petkova disputes the government’s finance claims. Civil Society & Anti-Trafficking: Deputy PM Ivo Hristov was named chair of the Civil Society Development Council and also leads the National Commission for Combating Human Trafficking. Infrastructure Reset: Aleksandar Todorov appointed new chair of the Road Infrastructure Agency management board. Foreign Policy: Bulgaria tells North Macedonia its EU path depends on fulfilling 2022 commitments, warning against escalating tensions. Regional Security Training: NATO-linked Trojan Footprint 26 runs with 3,000 troops; Bulgarian and Romanian special forces train together. Eurovision 2027 Prep: Cabinet sets up an organizing committee chaired by Hristov. EU-Ukraine Support: Japan pledges $14.7m to NATO’s PURL for Ukraine’s non-lethal procurement. Culture & Diplomacy: A Romanian translator highlights Bulgarian literature as a bridge as Bulgaria prepares for Bookfest 2026 guest-of-honour status.

US-Bulgaria Military Friction: Prime Minister Rumen Radev says US aircraft and tankers at Sofia’s Vassil Levski airport can stay only until end-June, after Washington failed to approve a visa-free regime for Bulgarians—extending the current permission by one month while insisting Sofia has its own priorities. EU Budget Pressure: Radev warns Bulgaria will be placed under the EU’s excessive deficit procedure on Wednesday, months after euro entry, accusing the previous government of fiscal “manipulations” to meet euro criteria. Water Sector Oversight: The Ombudsman Velislava Delcheva urges MPs to tighten consumer protection and regulation of water utilities, citing water losses above 60% nationwide and price hikes averaging over 72% since 2020. Energy Transition Update: Radev says Maritsa Iztok Mines and TPP Maritsa Iztok 2 will keep operating until 2038 after the European Commission accepted Bulgaria’s reform package, including support for workers and a smoother transition. Local Governance in Moldova: Moldova’s Central Electoral Commission starts printing ballots for the second round of mayoral elections in three localities. Sports & Culture: Sawyer Jura is called up to the US U-20 camp in Bulgaria; Slavi Binev is re-elected chair of the Bulgarian Taekwondo Federation; and Sofia hosts Kids Expo from May 29 to June 1.

NATO Trigger: A Russian drone hit an apartment block in Romania’s Galati, injuring several people and prompting calls for NATO Article 4 emergency talks, with EU leaders warning Russia has “crossed another line.” Gaza Escalation: Israel’s PM Netanyahu ordered the army to extend control to 70% of Gaza, a move that risks breaking the October 2025 ceasefire and worsening humanitarian conditions. EU Enlargement Fight: A growing Balkan bloc is pushing back against Ukraine’s accelerated EU membership, with the debate increasingly tied to agriculture costs and CAP reform. Judicial Power Clash: Bulgaria’s Supreme Judicial Council opposed a planned expansion of the Justice Minister’s powers, warning it could undermine judicial independence and separation of powers. Parliament Rules: The National Assembly adopted new procedural rules for the 52nd parliament and allowed ministers to postpone oral answers to MPs’ questions beyond the previous two-time limit. Public Audit Tech: Bulgaria’s National Audit Office will roll out an AI assistant (ODIS) to boost procurement checks and detect risks. Foreign Policy in Brussels: PM Radev met EU and NATO leaders and urged EU “common solutions,” stressing cohesion and agricultural policy alongside competitiveness and defence. EU Legal Pressure: The European Commission opened infringement procedures against Bulgaria and 19 others over delayed transposition of the “green transition” consumer rules. Local Accountability: Kardzhali Mayor Erol Mumun faced “similar measures” after police questioning over suspected misconduct, with the interior minister citing an earlier ex-governor case.

EU Reform Deadlines: The European Commission has launched infringement procedures against 20 EU states, including Bulgaria, for failing to fully transpose recently expired rules on empowering consumers for the green transition, warning of next steps if replies aren’t sent within two months. EU Funds & Anti-Corruption: In Brussels, Prime Minister Rumen Radev met Commission President Ursula von der Leyen as the EU praised progress on an independent anti-corruption office but set an August deadline to unlock the remaining recovery funds, with up to €370m linked to reforms. Euro-Transition Politics: Von der Leyen also highlighted the euro’s early benefits for payments and travel and pointed to stability after Radev’s election win. Public Procurement Oversight: Bulgaria’s National Audit Office will roll out an AI assistant for procurement checks, aiming to boost detection of irregularities and improve audits of public spending. Budget Talks: Trade unions (CITUB) are pressing the Finance Minister for consultations on the 2026 state budget, arguing any cuts should be capped and paired with salary increases. Defense Commitments: Radev told NATO leaders Bulgaria plans to gradually raise defense spending toward 5% of GDP, as the alliance prepares for its Ankara summit. Connectivity & Tech Diplomacy: Bulgaria and the US discussed Corridor VIII, airport modernization and 6G network cooperation, while a Hemus 2026 “Startup Networking” event will pitch dual-use technologies. Sports & Governance: Weightlifting champion Karlos Nasar urged institutions to intervene in Bulgaria’s federation deadlock that could jeopardize participation in the World Championships. Culture & Media: BTA signed a systematic partnership with the Burgas Art Gallery to provide weekly, copyright-cleared art content for media use.

EU Security & Ukraine Diplomacy: Bulgarian PM Rumen Radev pressed in Paris for the EU to lead negotiations with Russia, warning that “peace through strength” risks escalation without defenses against modern hypersonic weapons. France-Bulgaria Ties: Macron welcomed Radev at the Élysée, with talks set to cover defense, energy diversification, and support for Ukraine, while Radev later met Belgium’s Bart De Wever in Brussels. EU Funds & Rule-of-Law Clash: Brussels is cooling hopes for Hungary’s Péter Magyar on unlocking frozen funds; the Commission says a €10bn payout is unlikely and Hungary still faces rule-of-law milestones until end-August. Gaza Stabilization Deadlock: The planned UN-backed International Stabilization Force for Gaza remains stalled as pledged troop contributions fail to materialize, with the Iran war making cooperation harder and ceasefire efforts weaker. Domestic Governance & Oversight: Parliament advanced at first reading amendments on a special commercial administrator for critical oil and petroleum infrastructure, tightening supervisory and judicial oversight. Social Policy: Labour and Social Policy Minister Nataliya Efremova said pensions, disability support and family payments are secured, while outlining pension and maternity policy priorities. Healthcare Access: A new EFPIA report says access to innovative medicines in Bulgaria is worsening, with only 46% of new EU therapies reaching patients (down from 53%). Water Reform: Budget and Finance Committee approved Water Act amendments tied to Recovery and Resilience Plan requirements, including consolidation of water operators and differentiated pricing. Tourism & Visas: Bulgaria is speeding up visa processing for non-EU visitors and seasonal workers ahead of summer 2026.