The European Commission said on June 19 it had given a positive preliminary assessment of Bulgaria’s fourth request for funding under the EU’s Recovery and Resilience Facility, clearing the way for a partial disbursement of around €1.1bn

The Commission found that Bulgaria had successfully completed most of the reforms tied to the payment request, submitted in April, but said some commitments remain outstanding. Sofia will be granted additional time to meet those requirements while still receiving funds linked to completed milestones.

Deputy Prime Minister Atanas Pekanov welcomed the decision, calling it “an important key step for the success of the plan” and “a vital breath of air for the country’s budget,” BTA reported. He said the government expects the funds to be transferred to the finance ministry by the end of July, adding that the payment would provide much-needed liquidity at a critical moment for public finances.

According to the Commission, Bulgaria met 23 of the 26 milestones and targets linked to the tranche. These include measures in anti-corruption, digitalisation of administrative justice, vocational education and training, support for small and medium-sized enterprises, sustainable transport, renewable energy, agriculture and outpatient care.

Key reforms highlighted include the establishment of an independent anti-corruption body, the introduction of lobbying regulations, governance changes in the state energy sector, and the creation of a National Fund for Decarbonisation to support energy-efficiency investments.

The Commission also pointed to progress in renewable energy, including support for nearly 1,400 household solar and photovoltaic installations, as well as reforms aimed at modernising rail transport and promoting low-emission mobility.

However, some commitments remain incomplete. Legislation concerning the water supply and sewerage sector has not been fully implemented, while a target related to support for the cultural sector has yet to be met. The Commission also raised concerns about the wording of a public transport-related milestone and invited Bulgaria to revise that part of the plan.

Bulgaria has until August 31, 2026, to complete the outstanding measures and secure the release of any suspended funds.

The Commission’s assessment will now be reviewed by the EU’s Economic and Financial Committee, which has four weeks to issue its opinion before a final decision on the payment is adopted.

Bulgaria’s Recovery and Resilience Plan is financed with €6.17bn in EU grants. With the facility set to expire at the end of 2026, all milestones must be completed by August, with final payment requests submitted by September.

Pekanov said Bulgaria must also complete measures under its fifth and final payment request, worth nearly €1.7bn, by the same August deadline.