site.btaMedia Review: March 6

2025 DRAFT STATE BUDGET

Most publications on Thursday, including Trud, Telegraph, 24 Chasa, Sega, Mediapool, Duma, focus on Parliament adopting at first reading the draft state budget for 2025 in the early hours of the day, with 152 votes in favour, 73 against and no abstentions. It was supported by GERB-UDF, Movement for Rights and Freedoms (MRF) - New Beginning, BSP - United Left, Democracy, Rights and Freedoms - DRF and There Is Such a People. Against were Continue the Change -Democratic Bulgaria, Vazrazhdane and Morality, Unity, Honour (MECh). The deadline for proposals between the first and second reading of the bill will be five days. The new budget should come into force on April 1.

Telegraph noted that on Thursday, Parliament had a full 18 hour workday, filled with tension and disputes, and it was a full 7 hours before MPs would even get to discussing the budget. 

Sega noted that the Vazrazhdane party wasted almost the entire day “with procedural tricks”, “under the indifferent gaze of National Assembly Chair Nataliya Kiselova, who did not even realize that the MPs were speaking on issues that had nothing to do with the law”.

Sega reported that the 2025 state budget has a deficit of BGN 6.4 billion or 3% of GDP, which is envisaged to decline to 2.2% of GDP in the next four years. The amount of new debt that the state can take on this year has been set at a record BGN 18.9 billion. Thus, the state debt will reach BGN 61.7 billion (28.6% of GDP) in 2025, and in the following years it will continue to increase to BGN 88.9 billion (36% of GDP) in 2028

Sega also noted that the state budget had a deficit of BGN 1 billion at the end of February. The deficit in the treasury at the end of the second month of the year is significantly larger than in February 2024. In addition, a month earlier, in January, the budget had a surplus of BGN 563.9 million (and “not a deficit of BGN 400 million, as Finance Minister Temenuzhka Petkova claimed”), which means that February the new government went through the surplus of over half a billion, but also accumulated BGN 1 billion in overspending.

Trud writes that the Ministry of Finance reported a surprisingly large increase in VAT revenues in the first month of the year. VAT revenues in January amounted to BGN 1.984 billion and increased by BGN 523.9 million compared to the same month the previous year. (+35.9%). The draft budget for 2025 envisages a 33.7% increase in VAT revenues for the entire year. Such an increase has never been seen before and a number of economists have expressed the view that the planned revenues are unfeasible. However, in January, the increase in collected funds was even greater than that set in the budget. This raises the question of how VAT revenues were collected during the previous year. As well as whether this growth will be maintained in the coming months. The daily also notes that the increase in collected VAT funds in January is a result of both higher VAT revenues from domestic transactions and intra-community acquisitions, and VAT on imports from non-EU countries.

Duma quotes Minister of Labor and Social Policy Borislav Gutsanov, who commented that the draft 2025 state social insurance budget guarantees that people's social benefits will not be violated. He stressed that from July 1, all pensions will be indexed by 8.6% according to the Swiss rule, and as a result of the planned increases, the average pension is expected to reach BGN 975, which is 10% more than last year. he noted that these increases are not enough, but are realistic.

Trud quoted BSP-United Left MP Ivan Ibrishimov, who commented on the National Health Insurance Fund budget for 2025, noting that it is not the best budget, but it is the possible budget. For the first time, this budget will cover biomarkers.

On the air of Bulgarian National Television, healthcare experts discussed the new National Health Insurance Fund budget, noting that with its BGN 9 billion and 400 million, it has an increase of 16% compared to the previous year, but Dr. Mimi Vitkova, former Minister of Health noted that there has been no change in policies, which essentially means that people would not feel any difference with this increase. Patients will not receive 16% better quality services, and doctors - will not get a 16% increase in salaries, noted Dr. Stefan Konstantinov, former Minister of Health. 

Trud quoted an Alpha Research study that indicated that 57%of Bulgarians believe that the most significant increase in funds in the 2025 budget should be for healthcare. Health is a priority for absolutely all social, demographic and electoral groups, and only for people over 65 is it replaced by the desire for an increase in pensions, the survey shows. In second place, with an almost equal share of 35-37%, are the construction and repair of road infrastructure (road safety) and pensions.

POLITICS

Sega writes that half a day was wasted in Parliament on Wednesday in what turned out to be a fruitless dispute over concession contracts for natural resources. The debate took such a strange turn that a proposal to cancel these concessions, made by MECh, came down to the issue of removing National Assembly Chair Nataliya Kiselova.

Telegraph, Sega, Trud, 24 Chasa all report that MECh leader Radostin Vasilev threatened to consult with other political forces on whether to remove Kiselova from office. He complained that the way she chairs plenary sessions prevents Parliament from working properly.

Sega notes that the big question here concerns a potential caretaker government, as National Assembly Chair, Kiselova has the right and opportunity to head such a cabinet. This means that her possible removal and the election of another MP to replace her could also change the face of a possible caretaker government.

Telegraph, Mediapool report that MRF - New Beginning also called for Kiselova’s resignation, criticizing that she cannot lead the sessions, observing the procedural rules. 

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Trud reports that, after Parliament received requests from the Acting Prosecutor General Borislav Sarafov to authorize criminal proceedings against six MPs, only Bozhidar Bozhanov of Continue the Change - Democratic Bulgaria (CC-DB) waived his immunity. The four MPs from Vazrazhdane Slavcho Krumov, Ivaylo Chorbov, Yordan Todorov and Nikola Dimitrov have not yet waived it in connection with escalation of a Vazrazhdane protest against the introduction of the euro on February 22. CC-DB’s Kiril Petkov has also not waived his parliamentary immunity, which was requested on Friday, along with that of Bozhanov. National Assembly Chair Kiselova also said that she would not allow a request by MRF-New Beginning for the Parliament to decide whether to lift the immunities of Dzheyhan Ibryamov and Mario Rangelov, as the deadlines for this have expired.

24 Chasa and Trud quote Vazrazhdane leader Kostadin Kostadinov, who said that his party will not give "more hostages to the thugs" and that the parliamentary group's MPs will not give up their immunities. He noted that a special operation is currently being carried out against Vazrazhdane's parliamentary group. "They cannot put us all in jail," he argued.

On the air of Bulgarian National Television on Thursday, Vazrazhdane MP Tsoncho Ganev said that everyone has turned against Vazrazhdane after the protest which became known throughout Europe. ”This does not bother us, since our voters are behind us,” he said, adding that his party demands the resignation of the government and the dissolution of the 51st National Assembly.

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On the air of bTV on Thursday morning, Market Links sociologist Dobromir Zhivkov commented on a nationally representative survey by bTV and Market Links conducted between February 22 and March on political attitudes in the country. He noted that the Cabinet’s approval rating remained 27% for two consecutive months, which is relatively positive, as previous cabinets that reached a 14% approval rating. Zhivkov added that political leaders, especially Boyko Borissov and Delyan Peevski have relatively stable ratings and have been expressing a certain flexibility in international positions, unlike President Rumen Radev who has interfered more strongly in politics and has a slight decline in approval ratings. Zhivkov commented that those who actively enter “the political battle” suffer losses afterwards, regardless of how strong support they had to begin with. National Assembly Chair Kiselova’s rating is stable, mainly from the Bulgarian Socialist Party. The expert noted that GERB leader Boyko Borissov is clearly showing his desire to be prime minister and that he has the final say in his party.

INTERNATIONAL POLITICS

Multiple publications on Thursday, including 24 Chasa, Sega, Mediapool, Trud, quote Movement for Rights and Freedoms (MRF) - New Beginning Floor Leader Delyan Peevski, who commented on Bulgaria's position following a security council convened by the Prime Minister on Tuesday. He said that Bulgaria's neutral position is "spinelessness". He also expressed a position against any kind of support for Ukraine, saying that before Bulgaria helps other countries, it should first help its own citizens. 

Sega notes that previously Peevski promoted himself as a Euro-Atlanticist who would do everything to help Ukraine, but has now apparently completely changed his mind. The publication notes that support for Ukraine in Bulgarian political circles has visibly begun to weaken, after US President Donald Trump’s policy from recent days. 

Mediapool notes that in November last year, however, Peevski had a very clear position in support of Ukraine. Then he boasted that he had received a medal for special services to the Ukrainian people from the Chairman of the Verkhovna Rada of Ukraine, Ruslan Stefanchuk.

In a discussion on Bulgarian National television on Thursday morning, journalist Svetlana Dzhamdzhieva said that geopolitical winds are favourable to those who know how to quickly turn the sails. Political scientist Assoc. Prof. Stoycho Stoychev argued that Delyan Peevski made an impression with the change in his position, but if he is viewed as not a Euro-Atlanticist, but an Americanophile, his unpredictability may be due to the unpredictability of the American president.

24 Chasa, Trud, Mediapool and Telegraph quote GERB leader Boyko Borissov, who said that the position Bulgaria has on Ukraine is the only right one that is possible at the moment. He commented on global developments: "You can see that the situation in the US, the decisions being made, changes every day - after President Zelenskyy's position agreeing with what President Trump wanted. That means that the European position will quickly transform." Borissov also said that after GERB-UDF's coalition partners did not want him to be the Prime Minister, he hoped that Rosen Zhelyazkov would manage to react appropriately on the spot. He added that he gave up being Prime Minister for a stable government, but noted that ruling majority is "far from stable" at the moment. 

Mediapool also writes that nearly 200 Bulgarian public figures, intellectuals, artists, musicians, historians, writers, journalists, lawyers, sociologists and university professors published an open letter to President Rumen Radev, Prime Minister Rosen Zhelyazkov and National Assembly Chair Nataliya Kiselova, urging the country to take a clear position in defence of Ukraine and to support all international sanctions against the Russian aggressor. In just a few hours, the letter was signed by 1,800 people.

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Trud reports that the Court in Ohrid finally reached a verdict for the assault against Bulgarian Hristian Pendikov by Ilija Spaseski and Borce Angelov. The two received eight months in prison. The court however did not agree that this was a hate crime. Hristian Pendikov, secretary of the King Boris III cultural club, which was later officially deleted from the registers in North Macedonia, was severely beaten on the evening of January 19, 2023, outside a restaurant in Ohrid. According to the charges, he suffered serious bodily harm due to ethnic hatred.

DEFENCE

Trud, Telegraph, Sega, Mediapool report that during the Council of Ministers on Wednesday, Prime Minister Rosen Zhelyazkov announced plans for the establishment of a centre for innovation in defence. He spoke of the need to modernise Bulgaria’s defence industry to meet the growing expectations of Europe’s defence capabilities, especially in the current international and geopolitical context Zhelyazkov said that the sector is very fragmented, highlighting the pressing need for coordination to develop Bulgaria’s industrial and defence capabilities and capacities.

Sega notes that the essence, role, financing, participants and meaning of such a structure are currently not clear.

Mediapool comments that “Zhelyazkov’s government reacted immediately to the EC’s rearmament plan launched the day before, by announcing the establishment of a new administrative structure”.

Mediapool also reports that the government adopted a new National Defence Strategy on Wednesday. The document contains a detailed analysis of trends in the development of the security environment and its impact on the country's defence, defines the strategic framework and goal of defence, as well as the ways and means for achieving it over the next 10 years.

CULTURE

Trud reports that following consultations between Bulgarian institutions and UNESCO, the bureau of the World Heritage Committee agreed to organize the 47th session of the World Heritage Committee at UNESCO Headquarters in Paris from July 6 to 16. As initially decided, the session will be organized with the financial support of the Republic of Bulgaria as host. The event was supposed to take place in Bulgaria, but Minister of Culture Marian Bachev explained that since taking office in January he detected a significant delay in the organization which made it impossible to successfully complete in time.

Mediapool adds that This development comes after over 10 days of persistent refusal of information from the Ministry of Culture to the media, even after the Council of Ministers made an explicit decision to allocate nearly BGN 2 million for the event.

ECONOMY

Mediapool reports that producer prices in Bulgaria were the second highest in the EU after Ireland in the first month of 2025, per Eurostat data. The highest growth in this country is in the production and distribution of electricity, heat and gas, according to data from the National Statistical Institute. This is followed by the increase in prices in the processing industry, where the leader is the production of basic metals with a growth of over 20%

Mediapool writes that Bulgarian company Evrotrust will participate in the creation of the European electronic wallet for digital identity as part of a consortium consisting of European companies operating in the field of electronic identification and certification services. The WE BUILD consortium (Wallet Ecosystem for Business and Payments) has been selected by the European Commission for the second round of pilot projects on the European Digital Identity Wallet (EUDI Wallet).