EU Fiscal Pressure on Bulgaria: The European Commission is set to issue views on member states’ public spending, with Bulgaria expected to be rebuked for breaching deficit rules just months after euro adoption, as debate grows over whether the “excessive deficit procedure” is inevitable. Inflation Watch: Eurostat’s flash data shows Bulgaria among the highest in the euro area, with May inflation estimated at 6.3%, while Cyprus rose to 3.7% and energy remains the main driver. Water and Oil Sector Rules: Parliament advanced amendments to the Water Act to meet Recovery and Resilience commitments, and approved changes to oil and petroleum oversight rules, including judicial review tied to a “special commercial administrator.” Justice and Governance: The Justice Minister vowed to defend free magistrates’ voting in the Supreme Judicial Council election, while Foreign Minister Petrova said any decision on joining the special tribunal for aggression against Ukraine must follow institutional review. Diplomacy: Bulgaria reaffirmed support for Moldova’s EU path and discussed trade and energy links with Armenia as Russia tightens import bans. Local Spotlight: Inspections into alleged illegal construction in Varna’s Baba Alino area will not be restricted, Interior Minister Demerdzhiev said. Business & Jobs: Mega Group plans up to 175 jobs in Dimitrovgrad’s Beles Industrial Zone, and Bulgaria’s new government signals a push to deepen ties with China.