EU to Reprimand Bulgaria, France, Italy, 7 Others for Deficit Breaches
The EU Commission will reprimand Bulgaria for exceeding the 3% GDP deficit rule, joining France, Italy, and eight other nations. Bulgaria’s deficit is projected at 4.1% this year. Germany will also breach the limit but expects an exemption for defense spending, while France and Italy face ongoing fiscal challenges.
The EU Commission is set to formally reprimand Bulgaria on Wednesday for violating the bloc’s 3% GDP deficit rule, joining France, Italy, and eight other member states already cited. These rules, suspended during the COVID-19 pandemic and the 2022 energy crisis, were reinstated in 2024.
Bulgaria, which recently joined the eurozone, is projected to have a deficit of 4.1% this year, rising from 3.5% in 2025. Germany, despite advocating fiscal discipline, is also expected to breach the 3% ceiling, reaching 3.7% this year and 4.1% next year, but will likely be exempt due to increased defense spending post-Russia’s Ukraine invasion.
France aims for a 5% deficit this year, but the Commission warns it could hit 5.7% by 2027 without policy changes. Prime Minister Sebastien Lecornu plans to reduce it below 3% by 2029. Italy’s deficit is projected to fall to 2.9% by 2026-2027, but Prime Minister Giorgia Meloni seeks exemptions for energy price mitigation spending, similar to defense spending.