Eastern Balkans in May 2026: the most important developments in economy
In the Eastern Balkans in May 2026, Romania's economy was shaped by pressure on its currency during a political crisis. On 4 May the leu hit a new record low, and on 5 May the central bank spent up to 2 billion euros to steady it. S&P affirmed Romania's rating on 18 May, citing expected quick political normalisation and fiscal consolidation, and Fitch said it expects Romania to contain the macroeconomic damage. The central bank denied any risk of debt default and raised its end-2026 inflation forecast to 5.5%. Romania was reported to risk losing 15 billion euros in EU recovery funds because of delays in passing legislation and completing investments, while it renegotiated the programme to absorb 4.9 billion euros in grants in full.
Business and investment news in Romania covered many sectors. Tenaris took over Artrom, the country's largest pipemaker, and Romania sought a 1 billion euro deal with Rheinmetall to pull the Mangalia shipyard out of bankruptcy. The government put 700 million lei into the Rabla programme to encourage buying Europe-made cars and storage batteries. The Neptun Deep gas project reached the pipelaying stage, and two major defense and infrastructure contracts were signed with financing from the EU's SAFE mechanism. New trains stood idle because the supplier failed to deliver maintenance infrastructure. Patria Bank reported a 12% rise in first-quarter net profit.
In Bulgaria, inflation reached 7.1% in the latest reading, and economists warned about price controls and deficit concerns. S&P raised its outlook for Bulgaria, forecasting stronger growth. Bulgaria raised its minimum pension to 347.51 euros, with social security thresholds and pension payments rising from August. The EU said progress on anti-corruption would unlock 430 million dollars in suspended funds. Solar power briefly covered the country's full electricity demand for the first time, while small shops struggled as customers moved to large retail chains.
by WorldBrief & Maksim Micheliov | AI-generated summary
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