EU proposes disciplinary action against Bulgaria
The European Commission has initiated disciplinary steps against Bulgaria as the national budget deficit is projected to reach 7.4 percent of GDP this year. Finance Minister Galab Donev indicated that the government will implement spending cuts and income freezes to bring finances back within EU limits.
The European Commission proposed disciplinary action against Bulgaria on Wednesday after the nation breached European Union budget deficit limits. Finance Minister Galab Donev expects the deficit to reach 7.4% of GDP this year, a level that triggers EU intervention. The move creates a fiscal challenge for the Balkan nation just months after it joined the euro zone in January.
### Hidden Deficits and the Path to Sanctions Donev said previous administrations maintained reported annual deficits at 3% of GDP over the last five years by deferring specific payments. This accounting practice masked the true scale of the fiscal gap now facing the government of Prime Minister Rumen Radev.
