Bulgaria, the country with the lowest GDP per capita in the European Union (EU), faces a number of unresolved socio-economic challenges after three decades of democratic transition to a market economy. Through the EU’s Recovery and Resilience mechanisms, the country has an unprecedented opportunity to address a number of structural problems through the largest public financing instrument in its history. The Bulgarian government needs to provide the conditions for sustainable change and multiply EU financial resources by attracting additional private sector investment – constructive capital that is transparent and market-oriented.
This report presents an Action Agenda to attract constructive capital. It is based on an analysis of European and national strategy documents and consultations with key business representatives in the six planning regions of the country. Addressing the structural issues of state capture and upholding the rule of law is paramount to the success of the measures set out. The Action Agenda also contains recommendations in the area of priority investment areas for the EU, such as digitalisation, green technologies, innovation and entrepreneurship, while outlining the framework and possible benefits for Bulgaria of participating in international partnerships such as the Three Seas Initiative.