The Union's economic governance framework, known as the Stability and Growth Pact, has been reformed by the coming into force of three legislative acts on 30 April 2024 - Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97, Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure and Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States. 

The revised framework aims to promote maintaining sound public finances, combined with enacting reforms and investment, to achieve sustainable and inclusive growth in individual Member States and in the EU as a whole.

The reform of the economic governance framework makes no changes to Member States' deficit and debt reference rates. Both indicators should remain below the reference rates of 3% of GDP for the deficit and 60% of GDP for the debt. If a deviation from these rules is observed or projected in the medium term, corrective action by the countries is needed. The new point under the reformed economic governance framework is that in setting the fiscal adjustment commitments, a clear distinction is made between Member States in terms of their public debt and economic situation. It now takes into account the medium- and long-term challenges that Member States face and for which reforms and investments are needed, such as the demographic crisis, the need to strengthen social and economic sustainability and convergence, achieving a fair digital and environmental transition, etc., as well as growth prospects. Namely the consideration of the specificities of individual countries when defining their fiscal policy requirements should lead to better ownership and implementation by national authorities.

For the purpose of tracking the implementation of national commitments in the area of economic and fiscal governance, Member States should submit to the European Commission (EC) information in the form of medium-term fiscal structural plans covering a period of four or five years, depending on the normal length of the country's legislative cycle.

In this document, each Member State should present its fiscal plan, as well as priority public reforms and investments that together will ensure sustainable and gradual debt reduction and inclusive growth.

The development of the Plan rescinds the necessity to prepare a Convergence Programme and a National Reform Programme for Bulgaria in the future.

The first National Medium-Term Fiscal Structural Plan (MTP) of the Republic of Bulgaria has been prepared for the period 2025-2028, outlining the vision of the Bulgarian authorities for the fiscal policy, structural reforms and investments over the next four years. needed to promote sound public finances and to achieve sustainable and inclusive growth through reforms and investments.

In order to track the progress made in implementing the commitments set out in the MTP and to address the Country specific recommendations that each Member State receives annually in the framework of the European Semester, an Annual Progress Report should also be prepared by the end of April each year.

The procedures for the preparation of the MTP for the period 2025-2028 and the Annual Progress Report are laid down in the Council of Ministers Decision No. 595 of 14 August 2024.

The first Fiscal Structural Plan was approved by the Council of Ministers by Decision No. 111/26.02.2025 and submitted to the European Commission on 27.02.2025.

• National Medium-Term Fiscal-Structural Plan 2025 - 2028

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