The International Monetary Fund (IMF) has recommended that Bulgaria tighten its fiscal policy, shifting focus from supporting consumption toward promoting high-quality investment. Bornhorst emphasized that euro adoption represents a key milestone for Bulgaria, offering an opportunity to strengthen institutions, increase confidence in government policies, and stimulate medium-term economic growth. The IMF warns that fiscal policy must be carefully calibrated to fully realize the benefits of euro adoption, sustainably raise living standards, and avoid macrofinancial imbalances. Banks are well-capitalized, with ample liquidity and low non-performing loan ratios, despite rapid credit growth. Bornhorst stressed that targeted support for energy-poor households and a more competitive electricity market would enhance investment incentives and market efficiency.