site.btaBulgaria Emerges as EU Leader in Defence Industry, Says Minister Dilov

In a bTV interview on Saturday, Economy and Industry Minister Peter Dilov argued that Bulgaria’s defence industry is in excellent condition and has strong development prospects, especially in terms of competitiveness and industrial capacity. According to him, Bulgaria ranks first among EU member states in these areas.

Dilov noted that, according to the latest data, the defence industry accounts for around 4% of the country’s gross domestic product. Ministry data provided to bTV shows that the revenue of the Vazovski Mashinostroitelni Zavodi [Vazov Machine-Building Plants] (VMZ) for 2024 amounts to nearly BGN 890 million, with earnings slightly over BGN 220 million – about BGN 50 million more compared to 2023. As of March 6, 2025, the plant's revenue has already exceeded BGN 185 million, and the ministry expects both revenue and profit to continue to grow.

Dilov explained that if every EU member state were to invest 1.5% of its GDP in rearmament, about EUR 650 billion would be raised. When adding loan funds from the SAVE mechanism, the total amount reaches EUR 800 billion, he noted.

The European Commission President Ursula von der Leyen recently presented a plan for EU rearmament that could reach EUR 800 billion over the next five years. She explained that she had sent her proposal in a letter to the heads of state and government of EU countries. According to the proposal, EU countries would be exempt from budget expenditure requirements when investing in defence. It also envisions allowing member states to redirect EU cohesion funds for defence purposes. Von der Leyen proposes that EUR 150 billion be provided through loans to support the supply of ammunition, air defence systems, missiles, and drones.