Bulgaria to Receive Over €650 Million from EU Recovery Plan by Mid-October

Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev

Bulgaria is set to receive over 650 million euros from the National Recovery and Resilience Plan (NRRP) by mid-October, Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev announced in parliament. He explained that the processing of the request is expected to conclude around September 15, with the European Commission having already confirmed that Bulgaria has met all the required conditions.

The payment represents the second tranche under the plan, with a revised request submitted in July following coordination with the EC. Looking ahead, the third payment, totaling over 1.6 billion euros, is planned to be requested in September, aiming for disbursement by the end of the year. Donchev noted that Bulgaria and the European Commission have agreed in principle to consolidate the originally planned nine payments into two larger tranches, ensuring that the remaining funds will be fully received by 2026.

In addition, Donchev revealed that Bulgaria will participate in a joint venture with the German defense company Rheinmetall, funded through a long-term, low-interest loan under the European SAFE instrument. This initiative will allow the country to transition from Soviet-standard 122/152 mm ammunition to NATO-standard 155 mm rounds. While the production will serve the Bulgarian military, the majority of the output is intended for export. Estimates suggest that filling all warehouses will take between five and ten years, highlighting the continued relevance of Bulgaria’s military industry for the next decade. Donchev emphasized that this investment will support the technological growth of the sector rather than replace existing capacities, citing the Terem plant - where Stryker armored vehicles are to be assembled - as an example.

The deputy prime minister stressed the need for Bulgaria to shift away from a model of purchasing finished products and instead focus on domestic production to retain more added value within the country. Regarding equipment repairs for the ongoing conflict in Ukraine, Donchev acknowledged that logistics pose the main challenge due to long distances, but with careful management, the country’s plants, including the facility in Targovishte, can operate at full capacity.