V. Gugushev for Bloomberg: The Euro Will Not Increase Romanian Investments in Bulgaria

Investment activity in Bulgaria, Romania, and Europe as a whole remains relatively low, while companies continue to operate cautiously in the current economic environment. I do not expect a significant increase in Romanian investments in Bulgaria during 2026, because what we observe as a chamber of commerce is that a large share of investments are moving from Bulgaria towards Romania, rather than in the opposite direction. This is, however, a logical process, since the Romanian market is approximately four times larger. This was stated by attorney Victor Gugushev, Honorary Consul of Romania in Bulgaria and Chairman of the Bulgarian-Romanian Chamber of Commerce, during the program “In Development” hosted by Antonio Kostadinov on Bloomberg TV.

At the same time, support for joining the Eurozone is increasing in Romania, while Bulgaria is increasingly being presented there as a successful example of integration into the common currency area.

“The Romanian business community is putting increasing pressure on its own government. There is a very strong public discussion on the subject that Romania should follow Bulgaria’s path,” Gugushev stated. However, he added that the current economic situation in Romania remains extremely unfavorable, making the process slower and more difficult.

The Romanian Economy: High Inflation and Budget Deficit
Attorney Gugushev also recalled the major economic challenges facing Romania: the highest inflation and the highest budget deficit in the European Union. Although expectations indicate that both indicators may decrease during the year, they are still expected to remain above the European average.

In response to these pressures, the Romanian government increased VAT in 2025, froze salaries in the public sector, and reduced social spending.

“These are unpopular decisions and they generated contradictory reactions within society. At the moment, however, it cannot yet be said that they have achieved the desired results, because the government is trying to preserve its capital investment program, while in the context of the crisis in the Middle East, forecasts remain uncertain,” Gugushev commented.

Schengen, Trade and Connectivity Between the Two Countries
“Joining Schengen created extremely favorable conditions for Bulgarian and Romanian businesses. Romania is Bulgaria’s second largest foreign trade partner after Germany, while Bulgaria is Romania’s fifth largest. The two economies are very closely connected and are extremely important, beneficial, and promising for one another,” Gugushev stated.

According to him, the removal of border controls has facilitated traffic across the Danube, but the river itself continues to be perceived more as an obstacle than as an advantage due to the insufficient level of connectivity between Bulgaria and Romania.

“Connectivity between the two countries remains one of the key challenges for the expansion of Bulgarian and Romanian businesses and for the broader cooperation between the two states.”

Gugushev emphasized that this issue does not concern only bridges, but also the development of the connecting infrastructure, including highways and transport corridors. In this respect, Romania has been more active, while Bulgarian construction companies are increasingly participating successfully in these projects.

Trade Between Bulgaria and Romania
The Chairman of BRCC also underlined that trade exchange between the two countries remains strong across all sectors of industry and services. Bulgarian companies are making significant investments in Romania, while Romanian tourists continue to play a key role in the development of Bulgaria’s tourism sector.

What Business Expects After the Election Campaign
According to Victor Gugushev, the most important priority is preserving the current tax burden, while a new budgetary framework for 2026 is urgently needed because the existing budget no longer reflects economic reality. Structural reform in the public sector is also of critical importance.

“At the moment we have an extremely inefficient, yet very large administration. Increasing taxes without such reforms will not produce the desired results,” he concluded.