EU Commission Steps Up Imbalance Procedure Against Bulgaria

The European Commission will step up its procedure against Bulgaria due to the excessive macroeconomic imbalances the country has experienced.

The Commission noted the financial sector turbulence in 2014, which necessitated the taking of decisive policy action and specific monitoring.

It expressed concern about the existing of banking practices in the domestically-owned part with potentially significant implications for the financial sector and overall macroeconomic stability.

Other factors, which posed macroeconomic risks and deserved closer attention were the improving, but still negative external position, corporate overleveraging and weak labour market adjustment.

The European Semester decisions were presented by Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue and Economic and Financial Affairs Commissioner Pierre Moscovici on Wednesday.

Commissioner Moscovici noted that these developments deserved closer attention than last year, which justified the moving of Bulgaria from imbalances to excessive imbalances.