According to the EC, Sofia did not manipulate the data for the 2025 state budget

The European Commission (EC) recommends that Bulgaria improve its tax system and change the flat tax of 10% on all income. In its recommendations to the country from the European Semester, the EC points out that this taxation is not fair enough and leads to high-income earners bearing a lower tax burden than low-income earners. A similar recommendation was made some time ago by the International Monetary Fund.

The EC notes that tax revenues as a share of GDP are significantly below the EU average and this limits the country's ability to finance public services and investments, 24chasa.bg reports. However, the EC's recommendations are not binding and the commission cannot interfere in the fiscal policy decisions. The increase in wages and the large share of the shadow economy also feed the budget deficit, the analysis reads. The EC does not think that Bulgaria manipulated the budget data. Eurostat is verifying the data of the National Statistical Institute. The verification procedure is very thorough, especially after what happened in Greece. There is no reason to believe that they are incorrect, the document also reads.

Editor: Ivo Ivanov