Bulgaria Risks Losing 9 Billion Euros Due to Delays in Recovery and Resilience Plan

Atanas Pekanov, the former Deputy Prime Minister for the Management of European Funds during the Donev Caretaker Cabinet, warned that Bulgaria stands to lose out on significant financial support, amounting to 9 billion euros, due to delays in the Recovery and Resilience Plan and other related projects. He noted that projects, such as the modernization of the electricity transmission network, have been earmarked under the plan but remain pending due to a lack of action from the Bulgarian government.

Speaking on NOVA NEWS, Pekanov expressed concerns about the passive approach of both the caretaker government and the regular government talks regarding the Recovery and Resilience Plan. According to him, without decisive reforms and the necessary work in parliament, critical aspects such as the liberalization of the electricity market for households will remain stalled. He pointed out that with the government's inaction, Bulgaria will miss out on these essential opportunities.

Pekanov also commented on the broader political situation, describing it as "catastrophic." He argued that the ongoing political gridlock, coupled with the parties' inability to reach an agreement, has left voters feeling disillusioned. He stressed that elections must lead to actionable outcomes, and the prolonged political deadlock only exacerbates public dissatisfaction.

Turning to Bulgaria's fiscal situation, Pekanov noted that while the country isn't facing an immediate fiscal crisis, the structural deficit remains a pressing concern. He emphasized that this issue is likely to persist annually, leading to potential fiscal problems in the future. Although he reassured that there is no immediate risk to social payments due to state buffers, he acknowledged that these reserves are gradually diminishing.

On the topic of Bulgaria’s potential accession to the eurozone, Pekanov suggested that the country should request a second convergence report. However, he expressed doubts about whether European institutions would approve such a request, given the uncertainty surrounding the country's political leadership and the future direction of the government. He predicted that Bulgaria would likely join the eurozone no earlier than 2026.

Source: NOVA NEWS