Eastern Balkans

The regional economy shows strong growth momentum driven by significant foreign and domestic investment. Major projects include Chinese logistics real estate in Bucharest, OMV Petrom's photovoltaic initiative, and a Bosch-Politehnica engineering lab, while the EBRD forecasts steady growth for Bulgaria and Romanian firms like Premier Energy report soaring profits. Corporate performance is robust, with the Bucharest Stock Exchange profit multiplying sixfold and firms like Arctic Stream and Agroland reporting growth.

• 6Several companies announce major investments and expansions in Romania
• 3Romania’s OMV Petrom launches a photovoltaic project at the Petrobrazi refinery
• 3Chinese investors launch major logistics real estate project in northeast Bucharest
• 2Romanian utilities and infrastructure company Premier Energy sees net profit soar 327% in 2025
• 2EBRD Predicts Steady Economic Growth for Bulgaria Through 2027

Bulgaria is in a caretaker government phase with President Rumen Radev preparing to announce a new political project ahead of April elections, while Romania steadily progresses toward OECD accession. Both countries are engaged in cautious diplomatic outreach, with Romania's president set to attend a Washington 'Board of Peace' meeting as an observer and Bulgaria exploring a role in Gaza reconstruction, amid a backdrop of US House allegations of EU interference in Romanian elections.

• 2Defense Minister: Bulgaria Not Involved in Israel-U.S. Strikes on Iran, Security Council to Meet
• 2Bulgaria’s caretaker government sworn in ahead of April parliamentary elections
• 2Romanian president to attend Washington 'Board of Peace' meeting as observer
• 2Bulgaria Explores Role in Gaza Reconstruction at Munich Security Conference
• 2US House of Representatives: EU interfered in Romanian elections, not Russia

Regional security is on high alert due to spillover from the Middle East conflict and persistent Black Sea threats. Bulgaria hosts US military assets amid Iran-Israel strikes and scrambles to a Turkish F-16 crash near its border, while Romania detects drones and scrambles F-16s in response to Russian incursions during attacks on Ukrainian ports. Putin's claims of Ukrainian plots against gas pipelines add to the tense backdrop, with Bulgaria's Agriculture Minister also flagging a possible national security threat.

• 2Bulgaria: Gunshot Deaths and Fire at Remote Lodge Near Petrohan Spark Major Police Investigation
• 1Bulgaria on Alert as Military Conflict Unfolds in the Middle East
• 1US Tankers and Cargo Planes Stationed in Sofia Amid Iran-Israel Strikes, Bulgaria Safe
• 1Bulgaria: Agriculture Minister Flags Possible National Security Threat to PM
• 1Romania detects drone in Ukrainian airspace near border

Societal tension is dominated by public discontent with state institutions and policies, manifesting in protests demanding the resignation of Bulgaria's acting Prosecutor General and against government refugee center plans. Romanian education unions also resume austerity protests, while severe winter weather causes widespread transport disruptions and alerts across both countries, compounding existing pressures.

• 1Western Romania: Church of Sântămăria Orlea on Europa Nostra list of most endangered heritage sites in Europe
• 1Protest in Sofia Demands Resignation of Acting Prosecutor General Borislav Sarafov
• 1Bulgarian Town Pushes Back Against Government Refugee Center Plans
• 1From Temporary Protection to Long-Term Integration: Ukrainians in Bulgaria Seek Stability
• 1Romanian education unions resume protests against austerity in front of Presidency