Based on the budgetary performance of Member States in 2025 and the trend observed over the medium term, the European Commission is expected to recommend, on Wednesday 3 June, the opening of an excessive deficit procedure (EDP) against Bulgaria, as well as the closure of the procedure opened against Malta.
In April, the Statistical Office of the European Union (Eurostat) indicated that Bulgaria had, at the end of 2025, a deficit of 3.5% of national GDP and public debt of 29.9% of GDP. Last week, the European Commission also estimated that the Bulgarian deficit would amount to 4.1% of GDP this year and 4.3% of GDP if policies were not to change (see EUROPE 13872/7).
The Member State, however, adopted the single currency at the beginning of 2026, even though one of the convergence criteria to be met was the presentation of a deficit below 3.0% of GDP. The previous Bulgarian government had even undertaken to keep the deficit below 3% of national GDP until 2038.
At the end of May, as cited by the BTA agency, Bulgarian President Rumen Radev accused the former government of having “lied” about the state of the country’s public finances in order to achieve the objective of joining the euro area.
Bulgaria is one of the 17 EU countries that have activated the general escape clause in the Stability and Growth Pact, which authorises them to increase their annual military spending by up to 1.5% of national GDP for four years.
Malta. By contrast, the EDP that was opened against Malta should be closed, since the island has reduced its deficit to -2.2% of national GDP in 2025. Furthermore, the European Commission does not foresee an excessive deficit against Malta in 2026.
The deadline for reducing Malta’s excessive deficit was initially set to be at the end of 2027. (Original version in French by Mathieu Bion)