The EU budget in my country : Bulgaria.
Date: 2014-05-19
Institutions: Directorate-General for Budget
Subjects: Bulgaria, Community budget, EU budget, EU financing, EU investment, budgetary expenditure, financial management, implementation of the budget

The EU budget in my country

Bulgaria

Bulgaria

Coфия
Sofia

What is the EU budget?

The EU budget is an important tool that puts EU policies 
into practice. It finances actions that Member States 
cannot fund on their own or which they can fund more 
economically by pooling their resources. The EU budget is 
adopted through a democratic procedure: it is prepared 
by the European Commission (the EU’s executive body) 
and is then discussed and agreed by the Council of the EU 
(representing EU Member States, including Bulgaria) and 
by the European Parliament (where the democratically 
elected Bulgarian representatives sit). Once adopted, the 
budget is then managed either jointly by the EU Member 
States and the Commission, or directly by the Commission. 
In practice, 80 % of the EU budget is managed by national 
or regional governments. Through grants, loans and other 
forms of financing, the EU budget provides financial support 
to hundreds of thousands of beneficiaries such as students, 
scientists, NGOs, SMEs, towns and regions.

Where does the money come from?

The EU budget is largely financed by ‘own resources’ which 
are based on three kinds of sources:

  ▶ customs duties on imports from outside the EU and sugar 

levies;

  ▶ a small part of the value added tax (VAT) levied in the EU;

  ▶ gross national income (GNI): each Member State transfers 
a standard percentage of its GNI to the EU. This forms the 
largest source of income to the EU budget (76 % in 2012).

This system has been unanimously decided on by EU 
Member States for a 7-year period, and has been ratified 
by all national parliaments. It aims to provide a reliable and 

3

Did you know …?

  ▶ 4.5 % of Bulgaria’s wealth comes from EU 

investment.

  ▶ The EU budget supports Bulgarian farmers 

and the development of its rural communities 
by investing in projects improving living conditions 
in the countryside and helping rural businesses 
become more competitive.

  ▶ The EU is investing heavily in Bulgaria’s regions 

with projects such as the modernisation of water 
systems or the construction of motorways and 
metro lines.

  ▶ The EU budget is YOUR budget: from scientists to 
farmers, from Sofia’s metro users to small rural 
businesses, we all benefit from projects funded by 
the EU.

sufficient level of revenue for the EU budget, while at the 
same time taking into account the Member States’ ability 
to pay. Each Member State thus contributes in line with its 
wealth. The other sources of revenue for the EU budget 
include taxes on EU staff salaries, fines on companies for 
breaching competition laws and bank interest, etc. There 
is no direct EU tax. EU countries remain in control of their 
taxes.

THE EU BUDGET IN MY COUNTRY — BULGARIA4

Where does the money go? 

Who keeps an eye on EU spending?

Some 94 % of EU money is spent on the various EU 
policies, and most of it goes back to Member States. In 
many cases the EU budget supports large and complex 
projects. One of them is the European Partnership Action 
against Cancer, where collective European effort helps to 
prevent the disease and find a cure for it. Approximately 
6 % of the EU budget is spent on the functioning of the 
EU institutions. This is used to pay for the salaries and 
pensions of EU employees, translation and interpretation, 
security, buildings and IT systems, etc. This expenditure is 
necessary in order to allow the EU to work.

The chart below provides an overview of how much the EU 
invested in each of its Member States in 2012, and shows 
the contribution of European funding to each country’s 
wealth. In Bulgaria, EU funding represents 4.5 % of the 
country’s wealth (GNI).

The Commission has put into place robust internal control 
measures in order to ensure that funds are spent efficiently 
and effectively. As 80 % of the EU budget is managed by 
national or regional governments, Member States also 
play an important role in ensuring that rules are observed, 
and in detecting and addressing irregularities and fraud. 
Additionally, the European Court of Auditors reviews the 
EU accounts every year. For several years the Court has 
confirmed that the EU accounts are properly kept, but also 
points out errors in procedures (e.g. accounting errors by 
national programme participants or claims for non-eligible 
costs). Errors do not mean that EU money is lost, wasted or 
affected by fraud. A large part of the money spent in error 
is recovered. In addition, the European Parliament approves 
how the Commission has spent the budget following the 
end of every financial year.

If you want to see which entities have received EU funding, 
the financial transparency system will show you who has 
received payments from the EU budget.

Expenditure by Member State in 2012 (in million EUR)

16 000

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

PL  ES  FR  DE 

IT  BE  UK  PT  EL  CZ  HU  RO  SK  NL 

IE  AT 

LT  BG  SE  LU  DK 

FI 

LV  EE  SI  CY  MT

6 %

5 %

4 %

3 %

2 %

1 %

0 %

1a. Competitiveness
1b. Cohesion
2.  Natural resources
3a. Freedom, security  

and justice
3b. Citizenship
4.  The EU as a global  

player

5.  Administration
6.  Compensation
% GNI

THE EU BUDGET IN MY COUNTRY — BULGARIA 
 
The EU multiannual framework 2014–20 in 
brief

Although the EU budget is adopted every year, it must be 
established within the limits of the multiannual financial 
framework (MFF). The MFF is an expenditure plan setting 
the maximum annual amounts which the EU can spend in 
different fields of activities over a 7-year period. It therefore 
shapes the EU’s political priorities for 7 years.

For the 2014–20 funding period, the EU wants to meet 
the targets of the Europe 2020 growth strategy, focusing 
on what Europe needs in order to overcome the economic 
and financial crisis and concentrating on areas where it 
can make a genuine difference. Some of the Commission’s 
proposals for radical reform were watered down by 
Member States, but very important changes remain. Key 
elements of the 2014–20 MFF include:

  ▶ a focus on growth, jobs and competitiveness with 

increased investment in education and research, and a new 
Connecting Europe Facility fund to boost pan-European 
infrastructure projects for transport, energy and for 
information and communication technologies;

  ▶ a higher quality of spending thanks to simpler rules for 
EU funds, a clear focus on investments producing tangible 
results, as well as the possibility of suspending EU funding 
if a country fails to implement sound economic and fiscal 
policies;

  ▶ a reformed common agricultural policy for a more 
competitive and environmentally friendly European 
agriculture;

  ▶ the fight against climate change as a key component of 
all major EU policies and devoting 20 % of the 2014–20 
MFF to actions against climate change;

5

Too many  
EU civil servants?

There are around 55 000 EU civil servants and 
other employees serving 508 million Europeans 
and countless people in need around the world. 
By comparison, the German Finance Ministry 
alone employs more people than the European 
Commission’s services responsible for financial 
affairs, taxation and budget (1 850 v 1 542). 
Furthermore, in order to adapt to the harsh 
economic situation in Europe, the EU institutions are 
also cutting costs: the Commission’s wide-ranging 
staff reform is expected to save EUR 8 billion by 
2020, reducing its staff by 5 %, while at the same 
time increasing its working hours.

  ▶ solidarity with the poorest EU countries and regions by 
concentrating the largest portion of regional funding in 
those parts of the EU and by introducing a new youth 
employment fund;

  ▶ reduced administrative expenditure growth thanks to 

cuts in staffing numbers at European institutions.

THE EU BUDGET IN MY COUNTRY — BULGARIA6

The EU budget and Bulgaria

The EU budget in 2012

In 2012, Bulgaria’s public expenditure amounted to around 
BGN 27 billion (EUR 14 billion) — that is much less than 
the BGN 266 billion (EUR 136 billion) EU budget for the 
same year. However, it represented 37 % of the country’s 
public GNI, whereas the EU budget for the 27 member 
countries at that time was roughly 1 % of the Union’s GNI.

Comparison of public expenditure in % 
of GNI

The EU and national budgets serve different yet 
complementary purposes. The EU budget targets areas 
where EU money can generate added value. For example, 
a project of such magnitude as the European satellite 
navigation system Galileo could not be financed by a single 
Member State alone.

Natural resources
43 %

Citizenship, freedom, 
security and justice
1 %

The EU as a global player
5 %

Administration
6 %

Sustainable 
growth
45 %

EUR 136 billion

The EU budget v national expenditure

40 %

30 %

20 %

10 %

0 %

37 %

Bulgaria

1.05 %

EU

Unlike Bulgaria’s budget — or any other national budget — 
the EU budget does not fund defence expenditure or 
social protection, but is mostly investment spending. For 
example, as an effective transport network is essential 
for a successful economy, the EU has co-financed the 
construction of a motorway crossing almost the entire 
country and linking Sofia to Burgas.

Bulgaria is one of the EU member countries that receives 
more from the EU budget than it contributes, and this will 
remain the case throughout the next budgetary period 
(2014–20). Bear also in mind that this net balance does 
not accurately reflect the many benefits of EU membership. 
Many of them, such as peace, political stability, security and 
freedom to live, work, study and travel anywhere in the Union 
cannot be measured. In addition, European investments are 
intended to benefit the EU as a whole, and European funding 
in one country can benefit other EU members as well.

THE EU BUDGET IN MY COUNTRY — BULGARIAOperating budgetary balance 2012 (% of GNI)

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Operating budgetary balance: the difference between what a country receives from and pays into the EU budget. There are many possible methods of calculating budgetary balances. In its financial report, 
the Commission uses a method based on the same principles as the calculation of the correction of budgetary imbalances granted to the United Kingdom (the UK correction). It is, however, important 
to point out that constructing estimates of budgetary balances is merely an accounting exercise of the purely financial costs and benefits that each Member State derives from the Union and it gives no 
indication of many of the other benefits gained from EU policies such as those relating to the internal market and economic integration, not to mention political stability and security.

Regional policy

EU funding in Bulgaria (2012)

The largest share of the money that Bulgaria receives 
from the EU budget goes to its regions. EU regional 
policy aims to reduce the economic, social and territorial 
disparities between Europe’s regions and countries. It 
invests in projects supporting job creation, competitiveness, 
economic growth, improved quality of life and sustainable 
development. The environment and transport infrastructure 
are top priorities for Bulgaria. For example, the EU financed 
half of the construction of Sofia’s second metro line and 
invested in the modernisation of water systems in Gabrovo 
and Vratsa.

Administration
1 %

Citizenship, freedom, 
security and justice
1 %

Actions and 
programmes outside 
the EU
1 %

Growth 
and jobs
5 %

Total 
BGN 3.32 billion 
(EUR 1.7 billion)

Regional policy
49 %

Agriculture and rural development

The second largest area of EU expenditure in Bulgaria is 
agriculture and rural development. EU agricultural policy 

Agriculture and 
rural development
43 %

THE EU BUDGET IN MY COUNTRY — BULGARIA 
 
8

supports farmers and promotes safe and good food, but 
it also looks after the environment and stimulates rural 
economies. The agricultural income per worker increased by 
49 % between 2007, when the country joined the EU, and 
2012. A small company producing carved wooden furniture 
in Kuklen is just one example of EU funding in action: the 
company was able to buy a new high-tech machine, unique 
in Bulgaria, which increased production and enabled it to 
find new business partners in Europe.

In addition, thanks to the internal market, which makes it 
easier for companies to do business with counterparts in 
European countries, Bulgarian exports steadily increased 
since the country entered the EU. The country is also 
progressing in terms of development: between 2007 and 
2012, the Bulgarian growth rate increased from 40 % to 
47 % of the EU average.

However, Bulgaria is missing out on the development 
opportunities offered by EU funding because the country 
spends little of the money it is allocated from the EU 
budget. The situation has improved since 2007, and 
measures have been introduced to better prevent and 
punish fraud — as well as to improve the administrative 
capacity necessary to deal with EU funds. Nevertheless, 
Bulgaria still lingers behind in its use of EU funding.

Too much money 
spent on agriculture?

EU countries have made agriculture 
a European rather than national 
policy. It is the only policy almost entirely 
funded by the EU. That is why it represents 
a large proportion of the EU budget. It 
is also less costly for EU countries as a whole 
than implementing 28 different national policies. 
The common agricultural policy has undergone 
a major reform, whereby its share of the EU 
budget has fallen from 70 % in 1985 to around 
40 % today and is set to continue falling to 33 % 
in 2020. A new reform which comes into force in 
2014 further strengthens European agricultural 
competitiveness, making it more environmentally 
friendly and reducing the gap for countries receiving 
less money than the EU average.

THE EU BUDGET IN MY COUNTRY — BULGARIAEU projects near you

Infrastructure and transport

EXTENDING THE CAPITAL’S METRO NETWORK

In Sofia, a new 6.5 km section of metro completed 
the missing central section of line 2. The new link has 
seven metro stations. It forms part of an expanding 
metro system that will eventually include three lines, 
all intersecting in the city centre, and more than 
60 stations. The project will cut journey times within 
the city and reduce road congestion. (EU funding: 
BGN 308 million — EUR 157.4 million)

FASTER JOURNEY TIMES TO THE BLACK SEA

A modern motorway stretching 356 km from the Bulgarian 
capital Sofia to the Black Sea coastal town of Burgas 
has been built. Under a new project part-funded by the 
EU, the final missing link — a 115 km stretch between 
Stara Zagora and Karnobat — has been completed and 
put into operation on 15 July 2013. Travelling by road to 
south-eastern Bulgaria is faster and safer. (EU funding: 
BGN 560 million — EUR 286.2 million)

Agriculture and rural development

BETTER QUALITY OF LIFE FOR RURAL RESIDENTS IN 
SVILENGRAD

Four green areas have been given a face lift in Svilengrad: 
the area now has trees and bushes, playgrounds for 
children and paths and walking areas. By improving 
living conditions and quality of life for local residents, the 
project is helping to dissuade young people from leaving 
the area in search of better living conditions. (EU funding: 
BGN 742 140 — EUR 379 456)

9

Research and development

NEW LEAD ON STROKE TREATMENT

Doctors from the military hospital of Sofia are taking 
part in an EU-funded research project investigating 
a new treatment for strokes. The new technique involves 
cooling the patient’s brain and could significantly reduce 
the number of stroke-related deaths and disabilities. (EU 
funding: BGN 21.3 million — EUR 10.9 million)

Education

MAKING SCHOOL ATTRACTIVE!

The local high school in the town of Ihtiman is one 
among 1 880 Bulgarian schools taking part in ‘Making 
school more attractive for young people’. The initiative 

New lead on stroke treatment

THE EU BUDGET IN MY COUNTRY — BULGARIA10

is intended to reduce the number of early school 
leavers by improving employment opportunities. 
Ihtiman school encourages students to participate in 
extra-curricular activities that will help them develop 
personally, intellectually and physically. (EU funding: 
BGN 111.7 million — EUR 57.1 million)

NEW HOMES FOR CHILDREN WITH DISABILITIES

Bulgaria has an action plan to dismantle 130 large-scale 
children’s homes and move all residents into more modern, 
suitable accommodation within 15 years. The plan also 
foresees support services for children and young people. 
The initiative is part of the ‘Childhood for All’ project, which 
supports children and young people with physical and 
intellectual disabilities. (EU funding: BGN 90.9 million — 
EUR 46.5 million)

Environment and energy

SAFER AND CLEANER WATER IN GABROVO

Major works in the city of Gabrovo will improve drinking 
water distribution and treatment, as well as wastewater 
collection and treatment. This will mean safer drinking 
water for approximately 63 000 people, while an 
additional 17 % of the population will be connected to 
the sewerage system. (EU funding: BGN 94.1 million — 
EUR 48.1 million)

FIVE NEW REGIONAL SOLID WASTE LANDFILLS

Bulgaria recently built five new solid waste landfills in the 
areas of Montana, Ruse, Sevlievo, Silistra and Sozopol. The 
project brings the nation into line with European standards 
and avoids potential environmental damage from pollution 
and unregulated landfills. The landfills also improved 
recycling and collection of waste in the five areas. (EU 
funding: BGN 86.4 million — EUR 44.2 million)

Did you know?

Erasmus+ is not only for students. The 
programme allows new entrepreneurs to 
spend time in an enterprise in another EU 
country in order to acquire the skills needed 
to manage a small or medium-sized enterprise. 
The stay is partly financed by the European 
Commission.

Erasmus+ programme

THE EU BUDGET IN MY COUNTRY — BULGARIA11

SAFE HAVEN FOR BIRDS OF PREY IN KRESNA GORGE

A project is restoring populations of birds of prey and other 
emblematic species in south-west Bulgaria by tackling 
direct persecution and other indirect threats. The reward 
will be an increase in the griffon vulture colony in Kresna 
Gorge from 1–3 pairs to 8–12 pairs, if all goes well. The 
project will also establish a local breeding centre for 
vultures, and a rehabilitation and reproduction facility for 
land tortoises. (EU funding: BGN 368 560 — EUR 188 445)

All values in national currencies have been converted 
using exchange rates from October 2013.

Did you know?

Bulgaria was granted BGN 1.7 billion — 
EUR 867.8 million from a special EU fund to 
help it close and decommission the old Soviet 
1–4 nuclear reactors of the Kozloduy nuclear 
power plant.

Cover photo © camihesse, page 9 © vladgrin — Fotolia.com, page 10 © Rido — Fotolia.com 

More information on the European Union is available on the Internet (http://europa.eu)
Luxembourg: Publications Office of the European Union, 2014

ISBN 978-92-79-36678-9 
doi:10.2761/29792

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doi:10.2761/29792