The Council of the European Union has formally decided that an excessive deficit exists in Bulgaria, based on 2026 data. The decision, adopted under Article 126(6) of the Treaty on the Functioning of the European Union, triggers the EU's corrective procedure for the country. The document, dated 6 July 2026, was prepared by the General Secretariat of the Council for the Permanent Representatives Committee and the Council itself, and carries interinstitutional file number 2026/0177 (NLE).
The decision applies solely to Bulgaria and marks the first step in the Excessive Deficit Procedure (EDP), which requires the member state to take corrective measures to bring its deficit below the EU's reference value of 3% of GDP. The Council's determination is based on data indicating that Bulgaria's deficit exceeded this threshold in 2026. As a result, Bulgaria will now be required to submit a plan for reducing its deficit within a specified timeframe, subject to monitoring by the European Commission and the Council.
The move affects Bulgarian national authorities, which will need to implement fiscal consolidation measures, potentially impacting public spending and taxation. EU institutions, particularly the Commission and the Council, will oversee the process. Bulgarian taxpayers and businesses may face adjustments in fiscal policy, while other EU member states may view the decision as a test of the bloc's fiscal discipline framework. The next institutional step is for the Council to issue a recommendation under Article 126(7) TFEU, setting a deadline for Bulgaria to correct the excessive deficit.