The Ministry of Finance published the budget execution data at the end of 2025 with a comment that it managed to end the year with a deficit of only 6.83 billion leva, or 3.1% of the estimated gross domestic product (GDP). In fact, without external aid and one-off effects, the deficit is over 5%. If we ignore the European money, including Bulgaria's contribution to the EU budget (to be fair on the expenditure side), then the deficit swells to 11.3 billion leva, which is nearly 5.2% of GDP. Because it is the result of netting only the Bulgarian state's own revenues and expenditures, without taking into account external aid, donations and contributions/revenues related to common European Union funds. In short – this is Bulgaria's budget deficit in itself. A similar and even more structurally important indicator is the balance between tax revenues and the state's current expenditures (for wages, social payments and maintenance) plus interest expenses for debt servicing. This is a kind of “operating balance” that shows what the deficit (or surplus) is after netting those revenues and expenditures that are most closely related to the main operational functions of the state apparatus – tax collection on the revenue side and financing the state administration and the social system on the expenditure side. The state’s operating balance at the end of 2025 is deeply negative. Current expenditures plus interest far exceed tax revenues. The exact difference is BGN 11.95 billion, which is equal to 5.27% of the estimated GDP. A look back at fiscal indicators shows that Bulgaria’s operating deficit has varied between 5 and 6% of GDP in each of the last three years. Looking further back in time, it is seen that it has been above 3% of GDP in each year since 2020, with its lowest value being 3.3% in 2022. The broader structural deficit has slightly different dynamics. As a share of GDP, it is highest in 2023, when it reaches 6.73%, but it has not been below 3.5% in any of the last 6 years. What is even more worrying is how often the operating deficit exceeds government capital expenditure (investment) as a share of GDP. For the last six years, it has been higher in five of them. It should be emphasized that in this account, capital expenditure includes European funds. And even with the big jump in money under the PSU in 2025, the share of capital expenditure equals 5.23% of GDP, which remains slightly below the operating deficit (5.27%). The only year in which the operating deficit is slightly lower is 2022, when it is 3.3% of GDP, and capital expenditure equals 3.38%. But 2022 is specific in that there was record high inflation, which pumped up tax revenues (especially from VAT), and the then government had only just begun to implement many of the policies that in the following years led to a very significant and lasting increase in current government spending, mainly for salaries and pensions. In the remaining years, Bulgaria has a huge difference between the operating deficit and capital expenditures – in 2023 it is 1 percentage point higher, in 2024 – by nearly 1.5 percentage points. During the years of the pandemic (2020 and 2021) the difference is even greater. This shows that since 2020, our state, instead of investing in the country's capital, has been consuming it. This, in addition to burdening future taxpayers with higher government debt, also harms the future productive potential of the Bulgarian economy, which, in turn, reduces the chance that this debt will be compensated for with growth. It also guarantees that it will have to be covered by raising taxes. The only thing that is saving Bulgaria for now is the still relatively low debt burden. But this is also starting to change quickly. Interest expenses in the state budget jumped by 43% in 2025. And will continue to rise unless urgent measures are taken. The medium-term budget forecast, which was prepared by the outgoing government, projected interest expenses to reach 1.3% of GDP in 2028 (from 0.7% in 2025), and the state debt to reach around 37% of GDP in 2028 (from 28% in 2025). This is a very significant increase, and this is with very optimistic forecasts for the development of revenues and expenditures in the coming years. Ultimately, everything comes down to the huge deficit between the Bulgarian state’s own tax revenues and current expenditures for wages, maintenance and social payments. If this deficit is not corrected, falling into a debt crisis is just a matter of time. There are only two ways to correct it – cutting expenses or raising taxes. The first option is preferable for a number of reasons, but most importantly because government spending depends solely on the decisions of the government. In this sense, it is much more predictable than tax revenues, which also depend on the general economic situation, which in the case of a small and open economy like Bulgaria is also influenced by international factors, completely beyond the control of the local government. The next regular government faces very difficult decisions in the area of ​​fiscal policy. The potential for a significant reshuffle of the political terrain in parliament is perhaps a reason for hope that a government will finally appear on the horizon that is capable of implementing the necessary structural reforms in the budget sphere, reducing the bloated bureaucracy and solving the deficit problem in a way that does not harm Bulgarian taxpayers and does not stifle economic growth. This may turn out to be wishful thinking, considering the series of disappointing governments that have followed in recent years. But given the success of the mass protests in December, this hope is still worth holding on to.

Industrial producer prices fell by 0.4 percent in the European Union and by 0.3 percent in the euro area in December 2025 compared to the previous month, following increases of 0.8 percent and 0.7 percent in November, according to the latest preliminary estimates from Eurostat, the European statistics agency. On an annual basis, in December compared to the same month in 2024, producer prices in both the EU and the euro area also fell by 1.9 percent and 2.1 percent respectively. The annual average value of industrial producer prices for 2025, compared to 2024, increased by 0.5 percent in the EU and by 0.3 percent in the euro area. In Bulgaria, producer prices in the industrial sector increased by 1.4 percent in December compared to the previous month, after recording a monthly growth of 1.6 percent in November and 4.6 percent in October. Thus, our country registered the highest growth in industrial producer prices on a monthly basis in the last month of last year. On an annual basis, however, domestic producer prices in industry increased by 9.8 percent in December, which represents the most significant annual rate of increase among EU member states. Thus, Bulgaria registered the highest growth in industrial producer prices in the EU for the eleventh consecutive month on an annual basis. Regarding the annual price rate of the output of the Bulgarian industrial sector, Eurostat reports a slowdown. While in October, compared to the same month of 2024, production inflation in Bulgarian industry reached 17.6 percent, in November the indicator weakened to 13.8 percent. On an annual basis, industrial producer prices in the EU in December 2025, compared to the same month in 2024, increased by 0.6 percent for intermediate goods, decreased by 7.7 percent for energy, increased by 1.6 percent for capital goods, by 1.7 percent for consumer durables and by 1 percent for consumer non-durables. In the euro area, compared to the same month in 2024, industrial producer prices increased by 0.8 percent for intermediate goods, decreased by 8.8 percent for energy, increased by 1.7 percent for capital goods, by 2 percent for consumer durables and by 0.98 percent for consumer non-durables. The highest annual growth in industrial producer prices was recorded in Bulgaria (9.8 percent), Romania (6.6 percent) and Sweden (1.3 percent). The largest declines were observed in Luxembourg (-5.6 percent), Ireland (-4.9 percent) and Portugal (-3.7 percent).

Over the past decade or so, we have witnessed a continuous increase in the prices of banking services, especially those that are most in demand by consumers. According to BNB data, in 2025, banks collected over BGN 2.3 billion in fees and commissions from their clients - individuals and companies, which is an increase of 12% on an annual basis. The share of these revenues in the total net operating income of banks is also growing, exceeding 20%. The fees collected by banks are very diverse and numerous, there is no unified format for bank tariffs, and comparing the prices of individual banking services is extremely difficult. This limits the ability of consumers to make a rational choice and reduces competition, notes "Active Consumers". The non-governmental organization published an extremely interesting study of the fees for the most used banking services, namely: monthly bank account maintenance, credit transfer to the same or another bank online and at the cash desk, cash withdrawal and deposit, as well as ATM withdrawal. Most banks have increased the monthly account maintenance fee during this period. The fee at BACB, UBB, FIB, Tokuda Bank, CCB and Postbank has remained unchanged, and Investbank has even made a slight reduction, but let's not forget that in previous years these banks have also raised their rates more than once. There are only two banks that still do not charge a monthly maintenance fee if the account is bundled with a debit card - International Asset Bank and Municipal Bank. The picture is different when the bank account is not bundled with a debit card, i.e. the holder does not have a debit card of the respective bank - then the monthly maintenance fee is 30 to 50% higher. Another service included in the study is making a bank transfer. In principle, it is clear that if we make money transfers at a bank office (with a payment order), this service is charged many times more expensively than other alternatives such as paying by card or online bank transfer. The banks that benefit the most from this type of high fees are those serving government services, where people have to pay fees or fines by bank transfer (e.g. the Ministry of Interior, the National Tax and Customs Administration, courts, municipalities, etc.). After the adoption of the euro, interbank transfers are now carried out through the European SEPA system, and not through a national operator, as was the case until recently. Banks' costs for SEPA transfers are probably lower and it is appropriate for the BNB, as a regulator, to provide clarifications on whether there are prerequisites for reducing fees for online transfers. In the last two years, the majority of banks have significantly increased fees for transfers to the same bank, equalizing them with fees for transfers to other banks. UBB, UniCredit Bulbank and DSK Bank have the most ATMs - over 700, FIB, CCB and Postbank have over 500, and the remaining banks have well under 100. Withdrawing money at a bank counter is more expensive, as banks have massively increased this fee in the last two years.

American technology giant DXC Technology has officially opened its new workspace in Sofia Business Park. The facility will combine the functions of a modern office and a specialized center for artificial intelligence (AI), strengthening the company's position as the largest employer in the IT sector in Bulgaria with a team of over 3,500 employees (according to data as of 2025). The new center in Sofia becomes part of DXC's European AI network, which includes locations in Warsaw (Poland), Boblingen (Germany) and Zaragoza (Spain). The Sofia unit will employ over 200 experts, whose focus is the implementation of the DXC Xponential platform - a model for accelerated operationalization of artificial intelligence in business processes. The center will serve global clients in key industries, including the automotive sector, insurance services and financial services. The move to the new building coincides with the 20th anniversary of the company's entry into Bulgaria. In 2005, DXC (then part of its predecessor structures) opened its first global fulfillment center in the country.

The outgoing government granted a derogation to the Kozloduy NPP, which allows the plant to conclude a contract for the import of iron and steel products from Russia. A large part of the systems and equipment at the Kozloduy NPP are of Russian origin, some of the contracts for the supply of goods related to the reliable and safe operation of units 5 and 6 of the plant have been concluded or need to be concluded with Russian contractors. Kozloduy NPP is key to the energy system and energy security of the country. The plant provides more than 1/3 of the national annual electricity production.

Bulgarian Posts EAD will receive full compensation for the costs of providing the universal postal service, after the outgoing government updates the Methodology for calculating the net costs of this activity. The changes made create the opportunity for the company to be fully compensated for the costs it incurs in providing the universal postal service. The state guarantees the right of every citizen, regardless of social status, purchasing power or place of residence, to have equal access to a basic package of postal services of a certain quality and at an affordable price. Due to the public nature of the universal postal service, its provision entitles Bulgarian Posts EAD to receive compensation in accordance with the national and European legal framework. Last year, the parliament extended by five years the period for which Bulgarian Posts EAD is assigned the obligation to provide the universal postal service, starting from December 30, 2025. According to the amendments, providing the universal postal service constitutes an unfair financial burden for Bulgarian Posts EAD, for which the company will be compensated by the state.

The largest Bulgarian chain of medical institutions "Bulpharma" has invested 19.4 million euros for equipment in six cities for the period 2024-2025. The latest investment is in a new nuclear magnetic resonance MAGNETOM Flow.Plus of the technology giant Siemens Healthcare and it is already working in the capital - in the imaging department of the Sofiamed Medical Center - Lyulin. Thanks to the innovative software, the examinations take the shortest possible time, which achieves images with high precision for confirming or rejecting a diagnosis. The device has an image reconstruction system based on artificial intelligence, using deep neural networks for super-resolution of images, which provides a more precise, better and higher quality image.

The Municipality of Plovdiv has selected the Stara Zagora company "Rudin" OOD to build the new energy-efficient artificial lighting on the football field at the "Lokomotiv" stadium. It is planned to be installed on the canopies of the newly built stands, as well as to meet UEFA requirements for category "A". The facility is being built with state funding of 33,965,237.35 BGN excluding VAT, and the contractor is the consortium DZZD "Domat na Lokomotiv". The implementation period is 480 calendar days.

Ivaylo Slavov and Torsten Wegener are taking the helm of the Bulgarian IT holding Wiser Technology. Slavov becomes CEO and Wegener Managing Director. The focus of the holding will be on international expansion, higher operational efficiency and building a technology company oriented towards sustainable long-term growth. Ivaylo Slavov and Torsten Wegener have been members of the Board of Directors of Wiser Technology for almost a year. This gives them in-depth knowledge of the company’s business, strategy and operating model. Combined with their entrepreneurial and management experience, this creates the prerequisites for quick, informed decisions and confident leadership in the next phase of growth. Ivaylo Slavov is a serial entrepreneur and established business leader with over 30 years of international experience in IT, financial and business services. In his career, he has successfully built and developed both startups and established organizations, with a clear focus on international expansion. Torsten Wegener is an established technology entrepreneur and manager with over 30 years of international experience in digital services and enterprise technology. He has founded, developed and transformed a number of technology companies, combining an entrepreneurial approach with large-scale business management, including international expansion and M&A deals.

As of the end of December, Sofia Hotel Balkan AD reported total revenues of BGN 20.49 million compared to BGN 17.83 million for 2024. The activities of Sofia Hotel Balkan are related to hotel management, restaurant management, accompanying tourist activities such as business services, fitness, telephone, currency sale, rental of commercial and advertising space, holding congress events and other types of additional services related to international and domestic tourism. In the revenues from the main activity, the leading role is played by cash receipts from overnight stays, followed by revenues from the "Food" department and then those from rentals. In the revenues from the main activity compared to the same period in 2024, there was an increase in all types of operating revenues - overnight stays, "Food" department, rentals. In the hotel business, this is happening in the conditions of a significantly higher number of available guest rooms in the hotel in 2025 compared to 2024, the company notes. And this is due to the so-called "light" renovation and an increase in the number of rooms available for sale. The level of income, however, has also increased due to the increased prices of the services offered, with the hotel recording an increase of 5.07 euros in the average price per room last year compared to 2024. Rental income maintains a stable level of 822 thousand for 2025 and 749 thousand leva in 2024. The total amount of expenses at the end of December amounted to 21.04 million leva compared to 19.76 million leva a year earlier. The financial result of "Sofia Hotel Balkan" at the end of December is a loss before taxes of 552 thousand leva compared to a loss of 1.94 million leva for 2024, as a combined effect of the above factors. "Potamiro" Limited - Cyprus is the majority shareholder with 4,605,776 shares, representing 87.50% of the capital of "Sofia Hotel Balkan". The shares of "Sofia Hotel Balkan" are traded on the Unofficial Stock Market, segment "B", of the "Bulgarian Stock Exchange". In the last twelve months, their price has remained unchanged - 23,008 euros per share. This estimates the company at over 121 million euros in market capitalization.

At its meeting of 3.02.2026, the FSC decided: 1. Enters "OLIVA CONSULTING" EOOD in the register of tied agents. 2. Enters UNIVERSITY OF INSURANCE AND FINANCE, "WIFI BULGARIA" OOD, "SOLVIO" EOOD, "MOBI2 BULGARIA" OOD, "SDI GROUP" EAD, BURGAS FREE UNIVERSITY, "I&G INSURANCE BROKERS" EOOD and the "Dimitar A. Tsenov" Academy of Economics, Svishtov, in the register of organizations for conducting professional training of insurance brokers. 3. Deregisters the issue of units issued by the mutual fund (MF) "Advance Opportunities in New Europe", as well as the MF "Advance Opportunities in New Europe" from the registers kept by the Financial Supervision Commission.

In 2024, the average price of 1 hectare of arable land in the European Union (EU) is 15,224 euros, which represents an increase of 6.1% compared to 2023 (14,343 euros). The average annual price for renting agricultural land and permanent grassland is estimated at 295 euros per hectare, which is an increase of 6.4% compared to the previous year (277 euros), according to Eurostat data. Among the EU countries, the highest average prices of arable land in 2024 were recorded in Malta (201,263 euros/ha), followed by the Netherlands (96,608 euros/ha) and Portugal (76,556 euros/ha). The lowest prices are in Latvia (4,825 euros/ha), Lithuania (5,590 euros/ha) and Slovakia (5,823 euros/ha). In Bulgaria, the average price reaches 8,679 euros per hectare. When renting land, it is most expensive in the Netherlands – an average of 941 euros per hectare per year, followed by Denmark (580 euros) and Greece (509 euros). The lowest rental rates are in Slovakia (69 euros), Croatia (76 euros) and Malta (92 euros). In Bulgaria, the rent for 1 hectare of agricultural land in 2024 is 303 euros.

The Austrian steel company voestalpine, headquartered in Linz, is selling its subsidiary Böhler Profil GmbH, based in Bruckbach, Lower Austria. The buyer is the American company Kadant Inc., which is taking over the plant in Ybbs, Lower Austria, as well as the approximately 150 employees working there. The sale is part of the reorganization of the High Performance Metals Division. “During this process, it became clear that Böhler Profil no longer represents a strategic core business for the group due to its structure, distribution channels and processes,” said Herbert Eibensteiner, Chairman of the Board of Management of Voestalpine. According to him, Kadant had repeatedly expressed interest in the company, and it was important for the Austrian company that the future owner highly valued the expertise of the employees as well as the production technologies and capacity used. The deal is expected to be finalized by March, completing the restructuring of the portfolio in the division for Fösthalpine. Boehler Profil is a profitable company that has achieved stable financial results in the past. Cadant is taking over a well-positioned company and has expressed a strong interest in its further development and expansion of the product portfolio,” said Reinhard Neubauer, member of the Fösthalpine board of management responsible for the division. According to the company, Boehler Profil generated revenues of 51.5 million euros in the 2024/25 financial year. Cadant, headquartered in Westford, Massachusetts, was spun off from Thermo Electron, the predecessor of Thermo Fisher Scientific. The company has around 3,900 employees in 22 countries and is listed on the New York Stock Exchange.

Last year, government budget deficits averaged 4.6 percent in advanced economies and 6.3 percent in emerging markets, up from 2.6 percent and 4 percent, respectively, a decade earlier. Rearmament, aging populations, technological change and voter fear are fueling a risky trend toward deficit financing around the world. This year, global growth is due to governments, according to an analysis in the Wall Street Journal. Shaken by a flurry of growth-stealing shocks, countries around the world are scrapping their austerity plans and rolling out large fiscal stimulus packages financed by huge budget deficits. From sluggish Europe to the United States and parts of Asia, where trillions of dollars in investment in artificial intelligence are boosting demand, spending is expected to boost economic growth and jobs in the short term. As a result, global growth could accelerate to 3 percent annually over the next six months, according to JPMorgan. Economists say that could be a risky strategy at a time of low unemployment and higher interest rates. In Japan, yields on long-term government debt hit record highs last week after Prime Minister Sanae Takaichi announced a plan to boost spending and cut the consumption tax ahead of a snap election next month. The sell-off has spread to global markets, sending U.S. Treasury yields higher. The wall of government spending is designed to address growing challenges. Policymakers are scrambling to shore up companies whose business models are threatened by artificial intelligence, U.S. tariffs and subsidized Chinese exports. Many countries are also spending heavily to rearm in a more uncertain world, to finance the transition to cleaner energy or to care for rapidly aging populations. In the past, that would have meant higher taxes, not just higher deficits. But today’s leaders are reluctant to pass the buck to voters. According to the IMF, government budget deficits averaged 4.6 percent in advanced economies and 6.3 percent in emerging markets last year, up from 2.6 percent and 4 percent, respectively, a decade earlier. In the United States, the budget deficit of 6 percent of GDP expected this year partly reflects efforts to keep tax rates low. Goldman Sachs expects the U.S. economy to grow 2.5 percent this year, up from about 2 percent last year, as the drag from tariffs gives way to a boost from tax cuts, according to a Jan. 16 note.