EU Green Deal May Help Bulgaria Overcome Demographic Crisis

Bulgaria could take advantage of financing available under the EU Green Deal to solve the most pressing challenge the country is currently faced with - the demographic crisis. But is it really that simple? EURACTIV Bulgaria discussed the issue with leading economist Krassen Stanchev.

Bulgaria faces numerous economic challenges, but many of them can be traced back to the country's demography. Declining population growth, high mortality rate, an ageing population, and the constant emigration of young talents are major threats to the country.

Altogether, this could hinder Bulgaria's transition towards a sustainable and digital economy, which are the EU's two key priorities for the decade ahead.

Yet, new opportunities are opening as well. During the period 2021-2027, Bulgaria is expected to be one of the largest per capita beneficiary of EU funds. The Recovery and Resilience Facility (RRF) has reserved up to €10.4 billion for the country. Also, from the next seven-year Multiannual Financial Framework (MFF), Bulgaria will receive around €16.6 billion, from which €11.1 billion will be made available via the EU Cohesion policy.

Those EU funds represent a golden opportunity for Bulgaria to set the foundations for the country's economic revival and potentially reverse the negative demographic trend.

However, experts believe that, in its current state, Bulgaria's National Recovery Plan is not suited to achieve these strategic objectives.

Bulgaria's demographic crisis: how bad?

In 2020, Bulgaria's population was estimated at 6.95 million, down from a peak of 8.9 million in 1985. Among EU countries, Bulgaria is one of the fastest shrinking when it comes to population.

And the trend is set to continue....