AGP Executive Report

Counterfeit Crackdown: Bulgarian authorities destroyed a printing house producing fake euro banknotes and arrested three suspects after counterfeit notes were used in shops near Sofia; six printers, cutting plotters, UV detectors and inks were seized, with one suspect released on bail due to health reasons. EU Fiscal Pressure: Bulgaria’s finance minister says the European Commission will move forward with an excessive deficit procedure after a mission found issues tied to 2025 public-finance data; the government says it aims for the lowest possible deficit and targets around the 3% level. SME Funding Audit: A special audit was ordered over concerns about how projects were selected under an SME support procedure, with results expected to be made public once the check is finished. Competition Law Pushback: Business chambers and industry groups warn proposed amendments to competition and consumer protection rules could weaken competition, raise prices and hurt investor confidence. Roma “Ghettoes” Debate: A new 520-page research paper claims Roma “urban ghettoized structures” are expanding in southern Bulgaria, based on counts across 148 cities. Sports & Culture: Bulgaria’s long-jump star Bozhidar Saraboyukov won in Rome; and Burgas opens the Black Sea International Literary Festival with international authors.

Rail Modernization: Bulgaria has received the first two Alstom electric multiple units, with audits of completed tests expected on June 17 and further vehicle-type checks in July, as the Transport Ministry sets up a working group to speed up procedures. Competition Crackdown: Parliament’s Budget and Finance Committee approved rules to fine monopolies for excessive prices, expand unfair supply-chain practices, and create an electronic register to spot market distortions. Local Culture & Modernism: BTA’s “Pencho Slaveykov Today” series highlighted Kazanlak as a model of modernization rooted in tradition during the Rose Festival, linking the poet’s legacy to how Bulgarians define “modern” today. Sports on Home Soil: Sofia will host the BAUHAUS Down Syndrome World Championships Bulgaria 2026 (June 13–19) with 400+ athletes from 27 countries. International Ties: The Bulgarian Concert Evenings in New York wrapped up with a consulate event and a documentary premiere marking 20 years of the initiative. Travel & Nature: Rila National Park in Bulgaria topped a study ranking Europe’s most “untouched” national parks, praised for dark skies and glacial lakes.

Parliament & Social Policy: Moldova ratified new social security deals so Moldovans working legally in Ukraine and Canada can receive pensions and other benefits, using totalisation of insurance periods and export of benefits. Bulgarian Sports Governance: After a year-long legal fight, Vesela Lecheva was registered as President of the Bulgarian Olympic Committee. Sofia Hosts Global Event: Over 400 athletes from 27 countries will compete in the Down Syndrome World Championships in Sofia (June 13–19). EU-Backed Oversight in Energy/Industry: Parliament adopted amendments requiring the special commercial administrator in the oil sector to submit monthly reports, and it created an Investment Coordination Council to steer investment policy. Bulgaria-Greece Security & Connectivity: Prime Ministers Rumen Radev and Kyriakos Mitsotakis met in Sofia, stressing defence cooperation and energy/transport links. Tech for Language: INSAIT’s Mamay AI Chat is now available for nearly 40 million Ukrainian speakers. Tourism & Safety: A Bulgarian tourist in Romania was seriously injured after a bear smashed his car window and tried to drag him out. Regional Culture: Sofia will host the European Design Festival (June 11–14).

Water Policy: Parliament adopted on second reading amendments to the Water Act under the Recovery and Resilience Plan, aiming to set minimum costs for water and sanitation services, introduce differentiated prices for households vs non-households and social infrastructure, and consolidate water operators by “separate territory.” Defence & Security: HEMUS 2026 opened in Plovdiv with President Iliana Iotova and Defence Minister Dimitar Stoyanov; the event runs until June 6 and includes a defence capabilities forum and F-16 flyover. Weather Alert: NIMH issued yellow and orange warnings for heavy rain and thunderstorms across 13 regions. EU Fiscal Rules: The European Commission eased spending rules to help countries deal with the energy shock, while Bulgaria remains in the excessive deficit spotlight. OECD Diplomacy: Foreign Minister Velislava Petrova met OECD chief Mathias Cormann in Paris, saying Bulgaria has completed reviews in 18 of 25 working bodies and is pushing to finish the technical phase in 2026. Culture & Tourism: BTA launched a Romanian-language LIK magazine edition on Bulgarian spa tourism at Bookfest, highlighting growing Bulgaria–Romania travel ties. Crime Crackdown: Europol and Bulgaria-backed Operation KRATOS 2 led to 29 arrests and removal of 27,000 illegal streaming URLs. Sports: Volleyball coach Gianlorenzo Blengini named Bulgaria’s squad for the Volleyball Nations League opener in Brazil.

Fiscal Pressure & Pensions: The European Commission has recommended opening an excessive deficit procedure against Bulgaria, citing a deficit breach after euro adoption; Finance Minister Galab Donev says a new debt ceiling of €3.8bn was approved and that cutting the deficit to 3% will require tough steps like freezing incomes, while pensions rise 7.8% from July under the “Swiss rule” and the COVID supplement stops for newly granted pensions. Lukoil Oversight: The government replaced the special commercial administrator of Lukoil assets in Bulgaria, with Evgeni Simeonov taking over from Rumen Spetsov, citing “complex but overwhelming motives” and promising transparent oversight. Defence Industry Deal: Bulgaria signed Amendment No. 1 to the Lockheed Martin F-16 industrial cooperation framework, aiming to build new maintenance capacity in-country for Block 70 generators. OECD Readiness: Foreign Minister Velislava Petrova says Bulgaria has completed OECD accession reviews in 18 of 25 working bodies, with remaining areas needing legislative changes. Culture & Media: Bulgaria’s Pseudonature project from the Venice Biennale will be presented in Sofia, while BTA launched a Romanian-language LIK magazine edition on health and spa tourism at Bookfest. Tourism Demand: BTA data show Romanian visitors are increasingly coming year-round, with nearly 1 million accommodation registrations in 2025. Aviation Disruptions: Ryanair cut flights to 19 airports across Europe and the UK, including Stansted and Manchester, blaming rising costs and Middle East-related fuel disruptions.

Economy & Budget: Bulgaria’s Fiscal Council says the May budget deficit hit the highest level in 20 years, with the consolidated deficit expected at EUR 2.5 bln (2% of GDP) and a May monthly gap of EUR 0.74 bln. Public Finance Politics: The opposition Democratic Bulgaria disputes the PM’s claim that an excessive deficit procedure is inevitable, pointing to official stats and EU-adjusted figures, while GERB-UDF rejects budget-extension measures including scrapping COVID pension supplements and cutting party subsidies. Energy & Diplomacy: PM Radev warned that Middle East unrest will further destabilize Europe via supply chains and energy prices, as he met Lebanon’s defence minister; Foreign Minister Petrova confirmed Bulgaria backs Moldova’s EU path. Law & Oversight: Parliament advanced Water Act amendments on second reading, and approved oil-sector regulation changes tied to supervisory powers over critical infrastructure. Rule of Law: Justice Minister Naydenov vowed to defend free, transparent elections for Supreme Judicial Council members from the professional quota. Local & Business: Mega Group plans a new plant in Dimitrovgrad’s Beles Industrial Zone, aiming to employ up to 175 workers. Culture & Commemoration: Hundreds climbed Okolchitsa Peak to honour Hristo Botev and freedom fighters; similar wreath-laying events took place in Budapest and Okayama. Sports: Bulgaria’s football and volleyball items were mixed, while US ambassador nomination to Sofia and a Bulgaria-China trade push also made headlines.

Eurozone Inflation: Eurostat says euro area inflation rose to 3.2% in May, with energy, services and manufactured goods driving the jump; Bulgaria in Focus: Bulgaria logged the highest eurozone rate at 6.3% (core 2.5%), underlining fresh cost-of-living pressure; US Aircraft Row: Bulgarian PM Radev’s decision to end the stay of US military planes in Sofia at month-end (extended to June 30) is tied to a visa-free travel dispute, with US media reporting the government won’t grant a longer extension; Health Watch: Measles cases reached 341 by end-May, with 281 children affected and Vratsa leading at 188; Business & Policy: National Assembly chair Michaela Dotsova urged a more predictable, lower-burden administrative environment for SMEs ahead of the Green Transition Forum; Transport Update: Giurgiu–Ruse Friendship Bridge traffic will be restricted on 4–5 June for repairs; Culture: President Iliyana Yotova praised Iron Maiden as “down-to-earth” after meeting the band in Sofia.

World Cup Integrity: The Athletic reports growing fears of spot-fixing at the 2026 World Cup, with at least two players flagged by integrity experts for suspicious betting patterns. Energy Prices & Policy: A survey says 94% of Bulgarians worry about rising energy costs, while the government pushes administrative reform to cut paperwork and waiting times. Defence Spending: Defence Minister Dimitar Stoyanov reaffirmed Bulgaria’s NATO-linked plan to reach 5% of GDP by 2035, with details on how the money would be split. Parliament & Benefits: Progressive Bulgaria denies plans to cut paid maternity leave, as lawmakers also discuss reducing per-vote party subsidies and removing a COVID pension supplement. Public Safety: The BG-ALERT system will be tested June 2, and sirens will sound at noon for Botev Day. Transport: Danube Bridge traffic will be suspended June 4 for major repairs. Economy & Credit: BNB data shows consumer loan rates rising to 8.81% in April, and loan claims to the non-government sector up 16.3% year-on-year. Culture & Memory: BTA launched a special publication and video marking the 80th anniversary of the Botev March.

Inflation Watch: Bulgaria’s annual inflation is set to accelerate to 7.0% in May, up from 6.8% in April, with transport and hospitality expected to drive the rise. EU Budget Pressure: Bulgaria faces renewed scrutiny under the Excessive Deficit Procedure, with warnings that sanctions could follow months after eurozone entry. Energy Security: Bulgaria is finalizing a project to deliver Azerbaijani gas to Southeast Europe and is building the Vertical Gas Corridor, while the EWRC set June regulated natural gas at EUR 35.62/MWh, about 25% below European market levels. US-Bulgaria Tensions: Prime Minister Rumen Radev says U.S. Air Force aircraft using Sofia for refuelling must leave by end-June over a visa-free travel dispute. Health Policy: Bulgaria launches a free nationwide flu vaccination scheme for children aged 6 months to 7 years (and chronic cases up to 17) for 2026–2030. Sports & Culture: Dara’s Eurovision winner “Bangaranga” nears 17M YouTube views; Bulgaria also won medals at the Sarajevo judo cup and will send 17 athletes to the European off-road running championships.

Justice & Interior Oversight: Interior Minister Ivan Demerdzhiev said institutions must explain why illegal buildings near Varna were allowed to grow, and he also commented on the Sarafov exit and on investigations tied to Kardzhali Mayor Erol Myumyun and a Plovdiv prosecutor alert. Public Safety & Aid: After central Bulgaria floods, authorities carried out 500+ inspections and received 220+ aid applications, with payments expected soon. EU Finances: Bulgaria faces a looming excessive deficit procedure risk, with ministers stressing social payments are protected while spending may need tightening. Eurozone & Budget Pressure: The European Commission is expected to move toward deficit scrutiny just months after euro entry. Eurovision 2027: Sofia is already booking accommodation for Eurovision 2027, with demand spiking and some hotels not yet opening sales. Foreign Policy: Bulgaria plans to end US military aircraft refuelling/logistics at Sofia Airport by end-June over a visa-free travel dispute. Sports (Rhythmic Gymnastics): Stiliyana Nikolova led Bulgaria at the Varna European Championships with multiple medals, including gold in clubs and silver in ball/ribbon. Sports (Cycling): Jonas Vingegaard won the Giro d’Italia in Rome; Paul Magnier took the points jersey and three sprint wins. Culture & History: Vratsa marked 150 years since Hristo Botev’s battle and the April Uprising with talks linking history to today’s national identity.

US-Bulgaria Security Logistics: US troops and equipment will transit Bulgaria on June 1-2 as part of Operation Atlantic Resolve, with convoys escorted by the Military Police. Flood Recovery: After central Bulgaria floods, over 220 aid applications were filed and more than 500 inspections carried out in affected areas, with payments expected next week and support up to about EUR 4,000 depending on damage. Deficit Pressure: Labour Minister Nataliya Efremova says Bulgaria may need to tighten spending ahead of an expected excessive deficit procedure, while insisting social payments are protected and support will be reviewed for better targeting. Rhythmic Gymnastics Glory: Stiliyana Nikolova led Bulgaria to major medals at the European Championships in Varna, winning gold in clubs and silver in ribbon, while Bulgaria also claimed the team title. Local History & Education: In Vratsa, events marking the 150th anniversary of the April Uprising and Botev’s detachment highlighted youth engagement, with the Education Minister urging young people to see a future in Bulgaria. Food Prices Watch: Wholesale prices for staple foods fell overall this week, with notable drops in tomatoes and peppers. Defence Trade & Industry: HEMUS 2026 in Plovdiv (June 3-6) will feature a 34% rise in Bulgarian exhibitors, with a focus on drones, counter-drone tech and security systems. Sports Participation: Run2Gether 2026 in Sofia drew over 5,000 runners, including 3,000 on site and nearly 2,000 virtual participants, with strong corporate team turnout.

EU Budget Pressure: Bulgaria is bracing for an excessive deficit procedure after the European Commission is set to publish a report on June 3, with President Iliana Iotova warning the country will respond once it sees the EU’s arguments. Insurance & Prices: Economy Minister Alexander Poulev says the government has a temporary state guarantee to stabilize mandatory motor third-party liability insurance and ease pressure on insurance, food and fuel prices, alongside plans to curb unfair commercial practices. US Military Row: Prime Minister Rumen Radev says Bulgaria will end US military aircraft stay rights at Sofia Airport by end-June after no positive response on a visa-free travel dispute. Schengen Visa Reality Check: New EU data shows 181,111 of 1.15M Indian Schengen applications were rejected in 2025 (15.8% non-issuance), with Slovenia worst (46.1%) and Bulgaria next (37%). Travel Tech Update: Under the EU’s EES rules, Wizz Air warns Brits to arrive up to three hours early due to longer queues at passport checks. Sports & Culture: BRAVE CF 107 brings Delyan Georgiev vs Owais Yaqoob to Arena Burgas on Aug 1, while Eurovision winner Dara’s Bangaranga keeps spreading beyond Bulgaria.

US Visa Row: Bulgaria will end U.S. military aircraft stay rights at Sofia Airport by end-June after Washington failed to approve visa-free travel for Bulgarians; the cabinet will extend the current basing only until June. EU Finances: Prime Minister Rumen Radev warns the European Commission will publish a June 3 report that could trigger an excessive deficit procedure, with possible sanctions; Bulgaria’s April consolidated fiscal balance is reported negative at EUR 1.761bn. Civil Society & Human Trafficking: Deputy PM Ivo Hristov was named chair of the Civil Society Development Council and also of the National Commission for Combating Human Trafficking. Eurovision 2027 Prep: Government set up an organizing committee for Eurovision 2027, chaired by Hristov. Road Infrastructure: Aleksandar Todorov appointed chair of the Road Infrastructure Agency management board. Regional Security: Bulgaria condemned a Russian drone strike that hit an apartment building in Romania’s Galati, injuring civilians, and NATO confirmed the drone was of Russian origin. Labour & Youth: Bulgaria hosts a trilateral forum with Spain and Portugal on youth labour market challenges, including AI’s impact. Sports & Culture: Acrobatics World Cup opens in Burgas; FIFA highlights Okocha’s World Cup dribbling record; Eurovision audio production details emerge; Bulgaria’s Nishka ot Koren festival draws thousands in Germany.

US-Bulgaria Tensions: Prime Minister Rumen Radev says Bulgaria will allow US military aircraft and tankers to stay at Sofia’s Vassil Levski airport only until the end of June, after Washington failed to approve a visa-free system for Bulgarian citizens. EU Fiscal Pressure: Radev warns the European Commission will publish on June 3 a report that could trigger an excessive deficit procedure for Bulgaria, months after eurozone entry. Water Sector Overhaul: The Ombudsman urges MPs to strengthen consumer protection and oversight of water utilities, citing water losses above 60% and price hikes; Parliament also approved Water Act amendments on first reading tied to the Recovery and Resilience Plan. Energy Transition: Radev says Maritsa Iztok Mines and TPP Maritsa Iztok 2 will keep operating until 2038 after EU-accepted reforms, with further steps on water and the Yadenitsa Dam. Economy Watch: Bulgaria’s gross external debt reached €69.5bn (56.4% of GDP) at end-March, up sharply year-on-year. Culture & Sports: Nishka ot Koren Festival in Munster drew nearly 3,000 Bulgarians; Slavi Binev was re-elected chair of the Bulgarian Taekwondo Federation.

EU Social Snapshot: Eurostat says Bulgaria’s NEET rate (15-29 not in work or education) fell to 13.8% in 2025, still among the highest in the EU. Judiciary & Parliament: The Supreme Judicial Council warns against a bill that would let the Justice Minister challenge its decisions with automatic suspension, while Parliament also tightens bill review deadlines to 48 hours and changes rules on MPs’ questions. Justice System Speed: Bulgaria’s Supreme Administrative Court averaged 112 days per case in 2025, with 93% of judicial acts prepared within a month. Customs Crackdown: Customs seized 1,000+ online drug shipments, including vapes and sweets, and warned parents about parcels ordered by children. EU Law Pressure: The European Commission opened infringement steps against Bulgaria over delayed transposition of EU consumer green-transition rules. Diplomacy in Brussels: PM Rumen Radev pushes for EU “common solutions” on competitiveness, cohesion and agriculture, and reiterates Bulgaria’s 5% defence spending pledge. Sports & Culture: Rhythmic gymnastics in Varna brought Siyana Alekova junior hoop gold and Dea Emilova clubs silver; Bulgaria also marks the 40th anniversary of jazz legend Lea Ivanova’s death.

Roads Update: Bulgaria’s republican road network grew by 42 km in 2025 to 20,028 km, with bituminized roads up 48 km while crushed-stone/aggregate surfaces fell 5 km, and unpaved roads unchanged. Public Audit Tech: The National Audit Office will use an AI assistant (ODIS) for public procurement checks, built on the BgGPT model, with plans to expand to document review and contract/invoice automation. EU Recovery Deadline: The European Commission praised Bulgaria’s anti-corruption and euro progress but warned reforms must keep moving to unlock remaining recovery funds by the end-August deadline. Budget Talks: Trade unions say the Finance Minister should consult them soon on the 2026 state budget, pushing for limits on cuts and a linked salary increase. Water Sector Warning: Experts warn Bulgaria’s water problems come mainly from poor management, aging infrastructure and weak coordination—not just climate change. Transport & Tech Links: Bulgaria and the US discussed Corridor VIII rail, aviation upgrades and 6G, plus protection of critical infrastructure. Defence Spending: PM Rumen Radev told NATO he wants to gradually raise defence spending to 5% of GDP. Energy Storage Milestone: Enery inaugurated a 150 MW / 601 MWh battery storage system in Nova Zagora, calling it Bulgaria’s largest standalone BESS. Youth & Work Data: NEET youth in the EU fell to 11.1% in 2024/2025, with Bulgaria still among the highest at 13.8%.