Economy of the European Union

The candidate for Prime Minister Nikolay Denkov presented the structure and composition of his government to the Bulgarian deputies. In the beginning, he warned that the unusual formula of a cabinet with rotating prime ministers was selected because of the difficult situation in the country in an attempt to avoid another election. Among the priorities of his government, he indicated:

The Budget Committee of the Parliament adopted a decision to extend the current Law on the State Budget. The decision is to be voted on in the plenary hall. It is expected that there will be a second reading of the project so that the deputies can submit their proposals.

The common inflation in the Eurozone on an annual basis slowed sharply in May to 6.1% from 7% in April, preliminary data from Europe's official statistics agency Eurostat showed.

"Bulgaria is on the final stretch on the road to the Eurozone". This was stated by Iliya Lingorski from the BNB Board of Directors during a forum dedicated to the advantages for business and the economy of the adoption of the euro.

Eurozone government bond yields were headed for a weekly rise as robust economic data and hawkish remarks by central bank officials triggered some upward repricing in market bets about future European Central Bank rate hikes.

The European Commission recommended to Bulgaria to end the energy support measures for businesses, to emphasize the real implementation of the Recovery Plan and to reduce the deficit in the draft budget proposed by the Cabinet.

Greece, along with Italy, continues to experience excessive imbalances but its vulnerabilities appear to be receding due to policy progress, according to fiscal policy recommendations given by the European Commission in the context of the European Semester.

In more detail, the European Commission recommends that Greece:

With its two reports on Greece on Wednesday - the second assessment after the end of enhanced surveillance and its recommendations in the context of the European Semester - the European Commission is bringing Athens back to European reality, which entails imposing tight fiscal policy and the acceleration of reforms, following the intense focus on the election.

The Bulgarian National Bank (BNB) has no formal basis and has not suspended the technical work on the adoption of the euro. It is being carried out on schedule and within the bank's budget for 2023, the press center of the Bulgarian National Bank said regarding political comments that the process of joining the Eurozone should be stopped.

The European Bank for Reconstruction and Development (EBRD) has predicted in its latest Regional Economic Prospects report that Türkiye's earthquake-hit economy will grow 2.5 percent in 2023.

This was lower than the 3 percent growth GDP expansion forecast in the previous report.

The Turkish growth is expected to bounce to 3 percent in 2024, according to the developments bank.