{"text":[[{"start":9.8,"text":"Bulgaria will be punished next week for breaching budget rules just months after joining the Eurozone, in a move that will put the government of Prime Minister Rumen Radev on a collision course with Brussels. "}],[{"start":20.1,"text":"The European Commission, according to officials, will place Sofia under a so-called excessive deficit procedure because its annual deficit widened to 3.5 per cent last year, breaching the euro area’s 3 per cent threshold. "}],[{"start":35.35,"text":"The step, which comes with market stigma and potentially higher borrowing costs, is expected to raise tensions with Radev, who has previously served as president and become increasingly critical of the EU and the US since he was swept to power in April on a pro-Russian platform."}],[{"start":53.1,"text":"Bulgaria’s deficit is set to increase further in coming years, to 4.1 per cent next year and 4.3 per cent in 2027, according to the Commission’s recent forecast."}],[{"start":64,"text":"“This year the deficit will be even bigger. The bubble has burst,” Radev said at a government meeting on Friday. “This is the result of the heavy legacy we [inherited].”"}],[{"start":74.9,"text":"Ten other countries are under such a procedure, including Italy and France."}],[{"start":null,"text":"
"}],[{"start":80.35000000000001,"text":"Rome had sought to reduce its budget deficit to “below 3 per cent” last year — a requirement to exit the procedure — but fell short of it, marking a setback for Prime Minister Giorgia Meloni ahead of elections next year. Malta, which reduced its excessive deficit to 2.2 per cent last year, will exit the procedure."}],[{"start":101.55000000000001,"text":"Other countries with deficits projected to exceed 3 per cent — including Germany — will not fall into an excessive deficit procedure this year, thanks to a clause that exempts certain defence-related expenditures."}],[{"start":114.45000000000002,"text":"Bulgaria joined the Eurozone in January, capping a years-long effort that weathered repeated political crises and a misinformation campaign by pro-Kremlin politicians opposed to Sofia adopting the single currency."}],[{"start":127.85000000000002,"text":"One of the criteria for joining the Eurozone is to respect the EU’s fiscal rules, including the 3 per cent deficit threshold and debt levels below 60 per cent of GDP. "}],[{"start":140.05,"text":"Bulgaria met the conditions until last year when increases in salaries, pension costs and military expenditures squeezed the budget while ambitious tax revenue targets failed to be met."}],[{"start":151.9,"text":"Mismanagement of the economy and endemic corruption led to big protests that cut short the term of the previous government led by ex-premier Boyko Borisov’s centre-right, pro-EU party. Radev captured broad political support promising to end graft."}],[{"start":168.25,"text":"The former air force general has an outright majority in parliament but his policy line is seen as a risk. He needs the support of pro-western parties to execute his promised anti-corruption agenda."}],[{"start":181.1,"text":"Assen Vassilev, a former finance minister and now MP of the liberal PPDB party, Radev’s most likely partner in reforms, called the previous fiscal practice “absolutely beyond any logic”. He said the government must return to the EU-prescribed fiscal deficit of 3 per cent already in 2026."}],[{"start":202.65,"text":"“The procedure will be terminated and there will be no consequences for Bulgaria if we are OK this year,” Vassilev said."}],[{"start":215.9,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780284163_4213.mp3"}