AGP Executive Report

HEMUS 2026 in Plovdiv: President Iliana Iotova and Defence Minister Dimitar Stoyanov opened the 17th International Defence Equipment and Services Exhibition, with a flyover by F-16 Block 70 jets and a June 4 forum on defence capabilities and Bulgaria’s role in the European defence ecosystem. Water policy update: Parliament 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, and consolidate water and sewerage management by territory. Weather alert: The Meteorology Institute issued yellow and orange codes for heavy rain and thunderstorms across 13 regions, including orange for Gabrovo and parts of several western and central areas. Diplomacy & institutions: Bulgaria’s Foreign Minister Velislava Petrova met OECD Secretary-General Mathias Cormann in Paris, while a Constitutional Court delegation visited France’s Constitutional Council to discuss election legality, party financing oversight, and fake news risks. EU fiscal rules: The EU eased spending rules amid the energy shock, adding Bulgaria to the list of countries facing deficit scrutiny. Culture & tourism: BTA launched a Romanian-language LIK magazine issue, BG SPA – Health Through Water, to spotlight Bulgaria’s spa tourism and strengthen Bulgaria-Romania travel ties. Sports: Bulgaria named its Volleyball Nations League squad for the Brazil opening week, starting June 10 vs Belgium.

EU Fiscal Pressure: The European Commission has recommended opening an excessive deficit procedure against Bulgaria, citing a projected deficit of 4.1% of GDP in 2026 and 4.3% in 2027, with no immediate sanctions. Budget Measures: Finance Minister Galab Donev says the deficit can be cut to 3% if society accepts “unpopular measures,” including a freeze on incomes, while promising no tax or social security hikes. Pensions: From 1 July, pensions will rise by 7.8% under the Swiss rule, with the COVID supplement ending for new pensions. OECD Path: Bulgaria has completed OECD accession reviews in 18 of 25 working bodies, with remaining areas needing legislative changes, including governance and anti-corruption safeguards. Local Governance & Environment (Varna): Inspections in Varna target suspected illegal construction in the Baba Alino area, while councillors allege large-scale deforestation tied to KYB Corporation. Defence Industry: Bulgaria signed an amendment with Lockheed Martin for F-16 industrial cooperation, aiming to build new maintenance capabilities in-country. Culture & Tourism: Bookfest in Bucharest opens with Bulgaria as guest of honour, while Plovdiv’s Summer in the Old Town Festival runs June 4–Aug 29 with free events.

Local Investment: Bulgarian Mega Group plans a new production and business site in the Beles Industrial Zone in Dimitrovgrad, with up to 175 jobs expected. Public Finance: The Fiscal Council says Bulgaria’s May deficit is the highest in 20 years, while the government’s budget extension debate also saw the incumbents withdraw a proposal to raise the debt ceiling by up to EUR 3.8 billion. Economy & Business Climate: BAS economists outline three scenarios to 2028, with growth expected to slow in 2026 and inflation easing gradually, as employers and industry groups push for measures to protect competitiveness. Energy & Regulation: Parliament advanced amendments to the Water Act and the Oil Sector Regulation Act, while the BNB transferred EUR 281 mln to the Finance Ministry for the state budget. Rule of Law & Local Oversight: Interior Minister Demerdzhiev says inspections into alleged illegal construction in Baba Alino near Varna will not be limited. Diplomacy: Foreign Minister Petrova confirmed Bulgaria’s support for Moldova’s EU path, and PM Radev warned that Middle East instability could hit Europe via supply chains and energy prices. Commemoration: Hundreds climbed Okolchitsa Peak to mark Hristo Botev’s anniversary, with wreaths and ceremonies also held abroad in Budapest and Okayama.

Eurozone Inflation Watch: Eurostat says euro area inflation jumped to 3.2% in May, with energy prices driving the rise; Bulgaria in the Spotlight: Bulgaria logged the highest eurozone rate at 6.3% (core 2.5%), underlining fresh pressure on households and the ECB. US–Bulgaria Military Row: Bulgarian PM Radev says Sofia will end the stay of US military planes in June after Washington didn’t approve visa-free travel for Bulgarians, with the extension set only to June 30. Health Alert: Measles cases reached 341 by end-May, mostly children, with Vratsa the hardest hit. Transport Update: Traffic on the Giurgiu–Ruse Friendship Bridge will be restricted on 4–5 June for repairs. Culture & Sports: President Yotova praised Iron Maiden as “down-to-earth” after their Sofia meeting; and poker pro Dimitar Danchev won a WSOP $25,000 heads-up gold bracelet.

ATM Crime: Bulgarian Marcian Marinov was arrested in the Bahamas over alleged card-skimming and pin theft at Royal Bank of Canada and Commonwealth Bank ATMs, with prosecutors saying he also used pinhole cameras; he was denied bail and faces trial in July. Energy & Costs: A survey says 94% of Bulgarians worry about rising energy prices, while the BNB reports consumer loan rates edging up in April and credit claims to the non-government sector rising 16.3% year-on-year. Administrative Reform: Deputy PM Alexander Poulev launched a coordination push to cut paperwork, speed up services, and expand digital one-stop options. Health Oversight: The Medical Supervision Executive Agency director was dismissed as the ministry accelerates digitization and oversight. National Security: Authorities seized over 250 kg of marijuana in Yambol, arresting four; a helicopter with no markings was found and is under investigation. Commemoration & Preparedness: Bulgaria will test the BG-ALERT system on June 2 and activate sirens for Botev Day; schools and BTA are spotlighting the 80-year Botev March tradition.

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. Energy Security: Bulgaria is in the final stages of a project to deliver Azerbaijani gas to Southeast Europe, including work on the Vertical Gas Corridor, while the Energy and Water Regulatory Commission set June’s natural gas price at EUR 35.62/MWh. EU Money Pressure: Bulgaria is again facing deficit scrutiny after joining the eurozone, with EU recovery funds tied to reform progress and an August deadline mentioned in coverage. Health Policy: Bulgaria launched a free national flu vaccination programme for children aged six months to seven years (and chronic-condition kids up to 17), running 2026-2030. Local Politics: Socialist candidate Ecaterina Iacobceac won the mayoral runoff in Taraclia, Moldova, securing 51.23% of votes. Sports & Culture: Dara’s Eurovision winner “Bangaranga” keeps climbing on streaming charts, and Sofia hosts the Spring Book Fair through June 7.

Varna Crackdown: Interior Minister Ivan Demerdzhiev said institutions must explain why illegal builds near Varna went unchecked, as investigations continue into alleged failures by agencies. Prosecutor Shake-up: Demerdzhiev also claimed the removal of acting Prosecutor General Borislav Sarafov and the probe into Plovdiv’s appellate prosecutor show backers are losing influence, while Justice Minister Nikolay Naydenov said a police alert may trigger disciplinary steps. Justice System Pressure: Demerdzhiev said Kardzhali Mayor Erol Myumyun’s questioning followed document collection in a dog shelter procurement case, and that dormant prosecution proceedings have been revived. Rhythmic Gymnastics in Varna: Stiliyana Nikolova powered Bulgaria to eight medals at the European Championships, taking gold in clubs and multiple silvers, with federation chief Iliana Raeva calling it a standout performance. Eurozone Watch: Bulgaria is set to breach the 3% deficit threshold, risking the EU’s excessive deficit procedure shortly after eurozone entry. Eurovision 2027 Prep: Sofia is already booking accommodation for Eurovision 2027, with early demand and limited availability reported. Sports Spotlight: Jonas Vingegaard won the Giro d’Italia in Rome, while Bulgarian-born Dimitar Berbatov starred in Soccer Aid coverage.

Rhythmic Gymnastics Glory: Stiliyana Nikolova lit up Varna at the 2026 European Championships, winning gold in clubs and silver in ribbon, adding to Bulgaria’s growing medal haul. Labour & Housing Oversight: The Labour Inspectorate says it was repeatedly blocked from inspecting illegal buildings near Varna’s Baba Alino area, while the minister says the case will be fully clarified. Flood Aid Update: After central Bulgaria floods, more than 220 aid applications have been filed and hundreds of inspections carried out, with payments expected to start mid-next week. Food Prices Watch: Wholesale prices for staple foods fell overall by 3.37% week-on-week, with tomatoes and peppers among the biggest drops. Budget Pressure: Labour Minister Nataliya Efremova warned Bulgaria may need to tighten spending as an excessive deficit procedure looms, while insisting social support is protected by law. Culture Budget Row: Culture Minister Evtim Miloshev denied a 10% culture budget cut, saying any changes are part of wider public administration reform. Local Sports & Community: Run2Gether 2026 in Sofia drew over 5,000 participants, including 3,000 on site and nearly 2,000 virtual runners. Defence Expo in Plovdiv: HEMUS 2026 is set for June 3-6, with Bulgarian exhibitors up nearly 34% from 2024. US Military Transit: US troops and equipment will transit Bulgaria on June 1-2 as part of Atlantic Resolve rotations. Soccer Aid Tonight: The 20th Soccer Aid for UNICEF kicks off at London Stadium tonight with a star-studded England and World XI line-up.

EU Visa Pressure: New European Commission figures show 181,111 of 1.15 million Schengen applications from Indians were rejected in 2025 (15.8% overall). Slovenia led with 46.1% non-issuance, while Bulgaria followed at 37% and Greece at 33%, highlighting big differences between destinations. Deficit Watch: President Iliana Iotova says the EU’s June 3 report could trigger an excessive deficit procedure for Bulgaria, with possible monitoring and sanctions; PM Rumen Radev warns the deficit is well above 3%. Insurance & Prices: Economy Minister Alexander Poulev says the government is stabilizing mandatory motor third-party liability insurance via a temporary state guarantee and is preparing rules to curb unfair practices pushing up food and fuel prices. US Military Aircraft: Bulgaria will end US military aircraft stay rights at Sofia airport by end-June after a visa-free travel dispute, with no positive response from Washington. Sunny Beach Tragedy: A hotel fire in Sunny Beach killed two technicians; an investigation is underway. Eurovision 2027 Prep: Bulgaria set up an organizing committee to coordinate Eurovision 2027 planning, chaired by Deputy PM Ivo Hristov.

Hotel Fire: Two technicians died after a fire broke out in a Sunny Beach hotel service room while contractors repaired an air-conditioning system; one worker couldn’t escape and a nearby maintenance employee later died, as firefighters extinguished the blaze and an investigation is underway. US-Bulgaria Tensions: Bulgaria will end U.S. military aircraft stay rights at Sofia Airport by end-June after no positive response on visa-free travel for Bulgarians, with the Cabinet extending the current arrangement only until then. EU Finances: Prime Minister Rumen Radev warned the European Commission will publish a June 3 report that could trigger an excessive deficit procedure, bringing monitoring and possible sanctions, while opposition MPs disputed the government’s deficit claims. Governance & Institutions: Deputy PM Ivo Hristov was named chair of the Civil Society Development Council and also leads the National Commission for Combating Trafficking in Human Beings; the Road Infrastructure Agency appointed Aleksandar Todorov as new management board chair. Security & Diplomacy: Bulgaria condemned a Russian drone strike that hit an apartment building in Romania’s Galati, injuring civilians, and said it stands in solidarity with Romania. Labour Market: Bulgaria, Spain and Portugal held a trilateral forum in Sofia on youth employment, with ministers and social partners focusing on AI’s impact and longer transitions into work.

US-Bulgaria Tensions: Prime Minister Rumen Radev says US aerial refueling tankers and aircraft at Sofia Airport can stay only until the end of June, after Washington failed to approve visa-free travel for Bulgarians—Sofia is extending the current permission but refusing longer deployments. EU Budget Pressure: Radev also warned the European Commission will publish an excessive deficit procedure report on June 3, with possible sanctions, after Bulgaria’s deficit allegedly exceeded the 3% rule months after euro entry. Water Sector Overhaul: The Ombudsman urged stronger consumer protection and tighter oversight of water utilities, citing losses above 60% and steep price rises, while Parliament approved Water Act amendments on first reading tied to the Recovery and Resilience Plan. Local Elections in Moldova: Bulgaria Daily Herald’s region watch: Moldova’s CEC has started printing ballots for the May 31 mayoral runoff in three localities. Sports & Culture: Slavi Binev was re-elected head of the Bulgarian Taekwondo Federation; Kids Expo Sofia 2026 runs May 29–June 1 at St Alexander Nevsky Square. Tourism Safety: A hotel fire on Sunny Beach killed two technicians, with an investigation underway.

Parliament Rules Overhaul: Bulgaria’s National Assembly shortened bill review deadlines in committees and plenary from 72 to 48 hours, and also changed speaking and question procedures as it adopted the rules for the 52nd assembly. Judiciary Independence: The Supreme Judicial Council warned against a proposed Justice Minister power that would automatically suspend SJC decisions, saying it would breach constitutional separation of powers. Customs Crackdown: Bulgaria seized 1,000+ online drug shipments in “Operation Hydra,” including cannabis vapes and sweets, with cases where parents collected parcels ordered by children. Kardzhali Probe: The Kardzhali prosecution said it wasn’t notified about municipal actions tied to the mayor’s questioning, while the Interior Minister alleged procedural obstruction and called for action. EU Social Snapshot: Eurostat reports Bulgaria’s NEET rate (15-29) fell to 13.8% in 2025, still among the highest in the EU. Sports & Culture: Rhythmic gymnastics in Varna delivered a junior hoop gold for Siyana Alekova and silver in clubs for Dea Emilova; Bulgaria’s BAS announced a three-year programme for major historical anniversaries. International: Bulgaria’s PM Radev met EU and NATO leaders in Brussels, reiterating the 5% GDP defence spending pledge.

EU Social Snapshot: Eurostat says the NEET rate (15-29 not working or studying) fell to 11.1% in 2024 and 11% in 2025, with Bulgaria among the highest at 13.8% (Romania 19.2%, Greece 13.6%). Security & Defence: Prime Minister Rumen Radev told NATO he wants Bulgaria to reach 5% of GDP for defence spending, building on the 2% threshold, ahead of an Ankara summit. Ukraine Policy Shift Signals: Radev also urged Europe to rethink its Ukraine approach, warning about gaps against hypersonic threats and hinting Sofia may tighten future military and financial support. EU Politics Watch: Brussels’ party watchdog has launched a process that could deregister the Europe of Sovereign Nations alliance, linked to AfD and Bulgaria’s Revival, over alleged breaches of EU values. Energy & Industry: Bulgaria joined other EU states calling to overhaul ETS free carbon permits to protect energy-intensive industry. Local Energy Milestone: Enery inaugurated Bulgaria’s Nova Zagora battery storage (150 MW / 601 MWh), billed as the country’s largest standalone BESS. Sport: Bulgaria’s Miroslava Mincheva won bronze at the ISSF World Cup in Munich’s 25m pistol, as Esha Singh set a world record for gold.

Diplomacy & Security: Bulgaria’s PM Rumen Radev met France’s Emmanuel Macron in Paris and later Belgium’s Bart De Wever in Brussels, urging the EU to start negotiations with Russia on ending the Ukraine war and warning that “peace through strength” without countering hypersonic threats could raise escalation risks. Local Governance (Varna): The regional development minister said stopping illegal construction near Varna’s Baba Alino area is a municipality responsibility, after inspections involving forestry and interior authorities. Parliament Watch: MPs approved at first reading amendments tightening oversight of a special commercial administrator for critical oil and petroleum infrastructure. Weather Alert: NIMH issued a yellow warning for strong winds and hail storms in 11 regions on May 28. Social Policy: Labour and Social Policy Minister Nataliya Efremova said pensions, disability support and family payments are secured, with pension reform and tackling the grey economy among priorities. Culture & Sports: Bulgaria’s junior rhythmic gymnastics team won European gold in Varna; Eurovision winner DARA’s “Bangaranga” keeps climbing charts. Health & Economy: A study says vocational education is poorly aligned with labour-market needs, and EFPIA warns access to innovative medicines in Bulgaria is worsening.

Ukraine Diplomacy: Bulgaria’s PM Rumen Radev says the EU should lead negotiations with Russia to end the war, warning that “peace through force” risks nuclear escalation. EU Climate Rules: Six EU governments including Bulgaria want the bloc to freeze free CO2 permit allocations after energy-price pressure tied to the Iran war. Energy Trade: Azerbaijan boosted gas exports to Bulgaria by 26.4% year-on-year in Q1, reaching 359 million cubic meters. Fertilizer Pressure: Bulgaria urged EU agriculture ministers to deliver rapid support for farmers and loosen CAP flexibility as fertilizer costs bite. Border & Transport: Bulgaria and Türkiye discussed easing summer traffic at Kapitan Andreevo–Kapıkule and pushing rail links to handle Middle East-Europe cargo flows. Labour Migration: Bulgaria says 28,000 third-country nationals gained work access since the start of the year, with over 108,000 allowed over three years. Culture & Sports: Iron Maiden drew 30,000 fans in Sofia; Eurovision winner DARA’s “Bangaranga” keeps topping charts across Europe. Local Events: Burgas hosts the Acrobatic Gymnastics World Cup (May 29-31) and Ruse runs the European Youth Archery Cup (June 1-6).

Road Justice: A 36-year-old man jailed for driving while disqualified for a third time ignored a judge’s ultimatum to “grow up or go to prison,” after earlier breaches including driving without insurance and a suspended sentence tied to an assault case. Sports & Culture: Bulgaria’s film “Meko Kazano (To Put It Mildly)” won Best Feature-Length Animated Film at the Delhi International Film Festival, while Sofia Pride Film Fest gears up for 2–12 June with eight features and eleven shorts. Economy & Money: Bulgaria’s household gross wealth hit about EUR 554.9bn by end-2025, and the government says it has received 53% of Recovery Plan funds over five years, with a push to secure the rest soon. Health Watch: Measles cases surged to 317 between Jan 1 and May 24, up from just one in the same period last year. Infrastructure & Travel: Burgas Airport launched a Transavia France route from Paris, and the Makaza bypass near the Greek border is expected to be fully ready in days after landslide disruption.