In brief
Finance Minister Galab Donev addressed unions and employers in Sofia with a 2027 budget that seeks fiscal stability while keeping income and investment support intact. The plan projects a 3.5 % GDP deficit that will shrink over three years, with debt expected to reach 31.4 % of GDP. In Ireland, public‑sector workers on the lowest wages will see pay hikes up to 18.3 % under a €5.2 bn deal, reflecting a broader trend of social partners negotiating welfare measures.
At an emergency gathering in Sofia on 12 November 2027, Finance Minister Galab Donev met with representative trade unions and employer groups to unveil a draft 2027 budget that intends to restore fiscal sustainability while protecting income support and investment. The meeting followed a state of emergency declaration by the European Council under the Excessive Deficit Procedure, which has intensified scrutiny of Bulgaria’s high deficit and rising debt.
During the session, Donev highlighted that the 2027 plan integrates measures to enhance revenue collection, deter tax and social‑security contribution evasion, and cut administrative costs for businesses and citizens. “Fiscal consolidation requires efforts from all of us, which is why dialogue with you is of key importance,” he said, underscoring the government's reliance on partnership with social partners to achieve structural balance.
The budget forecast a cash‑basis deficit of 3.5 % of GDP in 2027, falling to 3.1 % in 2028 and 2.4 % in 2029, according to the medium‑term outlook presented by the Ministry. Total revenue, grants and donations are expected to range between 35.6 % and 36.1 % of GDP over the 2027‑2029 period, while consolidated fiscal programme expenditure is projected to decrease from 43.5 % of GDP in 2026 to 39.6 % in 2027, with further reductions to 38.9 % in 2028 and 38.0 % in 2029.
Under the new framework, government debt is projected to reach 44.3 billion euros—31.4 % of GDP—in 2027, with new borrowing capped at 8.6 billion euros and a minimum fiscal reserve of 2.6 billion euros set for year‑end. The minimum monthly wage is slated to rise to 660 euros in 2027, though the text cuts off before further wage details are provided.
Compared with Bulgaria, Ireland is also negotiating social support. A deal worth 5.2 billion euros has been agreed between the government and trade unions, granting pay increases up to 18.3 % for public‑sector workers on the lowest incomes, as reported by BusinessPlus.ie and echoed by the Central Friday Times. This bilateral agreement underscores the ongoing importance of employer–union dialogue in shaping income policy across Europe.
While Bulgaria’s 2027 budget outlines clear numerical targets, several uncertainties remain for external observers and financial watchdogs. The extent to which the proposed measures will curb evasion, the actual scale of administrative cost reductions, and the reliability of projected revenue gains are all contested points. Additionally, the EU Council’s ongoing Excessive Deficit Procedure will continue to monitor Bulgaria’s compliance, providing a backdrop of political risk that may influence both domestic and EU‑level fiscal decision‑making. In Ireland, questions persist about the long‑term impact of the 18.3 % wage increase on labor market dynamics and public finances.
