Commission greenlights Bulgaria’s fourth payment request under NextGenerationEU

This article is brought to you in association with the European Commission.

Today, the European Commission greenlighted Bulgaria’s fourth payment request under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU.

The Commission found that Bulgaria has satisfactorily completed 23 out of 26 milestones and targets set out in the Council Implementing Decision.

The reforms and investments tied to this payment request will drive positive change for citizens and businesses in areas such as anti-corruption, digitalisation of administrative justice, vocational education and training, support for small and medium-sized enterprises, sustainable transport, decarbonisation and renewable energy, agriculture, and outpatient care.

Flagship measures in this payment request include:

• Anti-corruption measures, including the adoption of legislation establishing a politically and financially independent Anti-corruption Commission for preventing and countering corruption among persons holding public office, and the introduction of rules to regulate lobbying activities.
• Measures to decarbonise the energy sector. This includes improving the corporate governance of state-owned energy companies through the restructuring of the Bulgarian Energy Holding (BEH) to avoid the risk of cross-subsidisation of coal-related activities and align its structure with Bulgaria’s future energy market needs. Moreover, a National Fund for Decarbonisation was established to support energy efficiency of buildings, with a Fund Manager appointed, and operating rules now in place.
• Boosting renewable energy by supporting almost 1,400 solar domestic hot water systems or photovoltaic systems to produce electricity in households.
• A new public service contract for public rail transport to improve quality, accessibility and passenger uptake alongside a modernised legal framework promoting zero- and low-emission transport, including new electric mobility rules and low-emission zones.

Pending milestones and targets

The Commission found that one milestone—related to the entry into force of legislation on water supply and sewerage—was not fully fulfilled. Bulgaria also declared one target, related to support for the cultural sector, as not yet achieved but plans to complete it by the 31 August 2026 deadline. Additionally, the wording concerning a milestone on public transport lacks clarity, and Bulgaria has been invited to submit a reasoned request for revision of its plan.

Bulgaria will be granted additional time to complete the outstanding commitments, while still receiving a partial payment for the milestones and targets that have been successfully fulfilled.

This procedure is in line with the RRF Regulation and the Commission’s implementation guidelines published on 21 February 2023.

Next steps

The Commission has now sent its preliminary assessment of Bulgaria’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), which has four weeks to deliver its opinion.

In parallel, the Commission has communicated to Bulgaria the reasons why it considers the above-mentioned milestone not to be satisfactorily fulfilled. Bulgaria now has one month to respond to this assessment.

If the Commission confirms its assessment, after Bulgaria’s reply, that the milestones and the target in question have not been satisfactorily fulfilled, it will suspend the corresponding portion of the payment. The suspended amount will be calculated based on the importance of the unfulfilled milestone, in line with the methodology outlined in the Commission’s 21 February 2023 Communication. Bulgaria will then have until 31 August 2026 to fulfil the outstanding commitments. If successful, the suspension will be lifted, and the funds released.

The payment to Bulgaria for the already greenlighted milestones and targets can take place following the EFC’s positive opinion and the adoption of a payment decision by the Commission.

Background

Bulgaria submitted its fourth payment request for €1.1 billion on 2 April 2026. Bulgaria’s Recovery and Resilience Plan includes a wide range of investment and reform measures, financed by €6.17 billion in grants.

With a view to the closure of the Recovery and Resilience Facility at the end of 2026 and ensure timely implementation, all milestones and targets must be completed by August 2026, with final payment requests submitted by September 2026.

For more information

Commission’s preliminary assessment of Bulgaria’s fourth payment request

Plan overview, full plan and all other related documents

Recovery and Resilience Facility

Recovery and Resilience Facility project map

Recovery and Resilience Scoreboard

Recovery and Resilience Facility Regulation

Recovery and Resilience payment claim process

EU as a borrower