Bulgaria’s prime minister said there is “no money in the treasury” as the government works to prepare its 2026 budget amid mounting fiscal pressures.

“The situation is very complicated. There is no money in the treasury,” Prime Minister Rumen Radev told journalists in Shumen on June 15, local media reported.

He said the government was working “almost around the clock” to draft the budget, aiming to reduce the deficit and limit new borrowing.

Radev added that previous governments had exhausted accounting measures used to manage public finances, leaving limited room for manoeuvre.

“All accounting tricks have already been exhausted … State-owned companies cannot be decapitalised anymore,” he said, adding that some firms were already in weakened financial condition.

The government is focusing on improving revenue collection and cutting spending, with details to be announced when the draft budget is presented, he said.

A regular budget is expected to be submitted by the end of June, although Radev cautioned that reducing the deficit to the European Union’s 3% of GDP threshold in the short term would be difficult.

“From such a high deficit … we cannot suddenly go down to 3%,” he said.

The comments come as Bulgaria faces scrutiny from Brussels over its public finances.

The European Commission has recommended placing the country under an excessive deficit procedure after its budget shortfall reached 3.5% of GDP in 2025 and is forecast to exceed 4% in 2026 and 2027.

Under the EU’s excessive deficit procedure, member states are given deadlines to correct fiscal imbalances or face potential penalties.

EU countries are expected to decide later this month whether to formally open the procedure.