Since joining the European Union in 2007, Bulgaria has faced a significant challenge: the emigration of its young, skilled population. Over 1 million Bulgarians (15% of the population) have left, primarily for Western Europe, seeking higher wages and better opportunities. The country’s population has dwindled from 9 million in 1989 to 6.5 million today, with young professionals in IT, medicine, and engineering most likely to leave. This brain drain threatens long-term economic growth and innovation. To retain youth, Bulgaria must implement targeted initiatives, drawing lessons from other EU countries that faced similar challenges after Schengen Area integration. Proposed strategies include boosting job opportunities, improving quality of life, fostering entrepreneurship, and leveraging EU resources.
Understanding the Emigration Trend
Bulgaria’s youth emigration mirrors patterns in other post-2004 EU members like Poland, Romania, and the Baltic states. After joining Schengen, these countries saw increased mobility, with 10–20% of their youth leaving for wealthier nations. Poland lost 2 million citizens between 2004 and 2014, though return migration later increased. In Bulgaria, the average monthly wage of €900 in 2023 pales against €3,000 in Germany, driving emigration. Key sectors like healthcare face shortages, with 2,000 fewer doctors than needed. Cultural factors, like perceptions of better prospects abroad, also play a role.
Creating High-Value Job Opportunities
Bulgaria’s energy and technology strategies are increasingly intertwined with its goal to retain young professionals and reverse the outflow of skilled talent by expanding high-value sectors. The country’s IT industry is growing at 12% annually and currently employs 80,000 people, yet it faces a talent gap of 10,000 workers. Scaling education models like Telerik Academy, which trains 2,000 students per year, could increase tech graduate output by 5,000 annually. When paired with targeted tax incentives, similar to those in Estonia, Bulgaria could attract both homegrown startups and global tech firms, creating an estimated 15,000 new tech jobs by 2028. The state’s “Work in Bulgaria” initiative, offering tax breaks and relocation support, has already drawn 5,000 skilled returnees since 2018 but remains underutilized.
Simultaneously, Bulgaria is undergoing a comprehensive energy transformation aimed at reducing reliance on Russian resources while fostering sustainable growth and long-term employment. A cornerstone of this effort is the Interconnector Greece–Bulgaria (IGB), a 182-kilometer natural gas pipeline that became operational in 2022. The IGB links Bulgaria to the Southern Gas Corridor, enabling access to Azerbaijani gas and LNG via Greece and Turkey. The project has already created hundreds of construction and engineering jobs and continues to support energy-sector employment through operations and expansion.
Bulgaria is also leading the development of the Vertical Gas Corridor; a regional pipeline network connecting Greece, Romania, Hungary, Slovakia, Moldova, and Ukraine. Expected to be completed by 2025, this corridor will enhance LNG flow from Alexandroupolis and support ongoing employment in pipeline maintenance, systems monitoring, logistics, and cross-border coordination.
At home, Bulgaria is modernizing key energy assets. The Lukoil Neftochim Burgas refinery (the largest in the Balkans) is being retrofitted to operate independently of Russian crude, with plans to source oil from Kazakhstan, Iraq, and Tunisia. A €500 million investment is needed to support this shift, offering job opportunities in retrofitting, logistics, plant operations, and compliance; particularly if the facility transitions to new ownership under prospective buyers like KazMunayGas or MOL.
One of the most ambitious job-generating projects on the horizon is Bulgaria’s expansion of its nuclear energy capacity. The government has committed to building two new AP1000 reactors at the Kozloduy Nuclear Power Plant, in partnership with Westinghouse and Hyundai Engineering. Construction on Unit 7 is expected to begin soon, with operation targeted for 2033. This project is anticipated to create thousands of high-skilled construction, engineering, and energy-sector jobs over the next decade, while solidifying Bulgaria’s place in Europe’s clean energy transition.
In parallel, Bulgaria is advancing renewables and advanced manufacturing. A €500 million investment in solar and wind energy by 2025 could generate approximately 3,000 green jobs. Manufacturers like Siemens have identified a need for 15,000 skilled workers, an opportunity that could be met by doubling enrollment in vocational training.
These energy and infrastructure initiatives are more than diversification strategies, they are the foundation of Bulgaria’s economic renewal. By aligning public investment with EU policy, attracting international partners, and scaling workforce development, Bulgaria is creating a future-focused economy that supports stable, high-paying jobs across engineering, energy, logistics, and technology. The goal is clear: retain young talent, bring skilled workers back home, and position Bulgaria as a dynamic innovation and energy hub at the heart of Europe.
Enhancing Quality of Life
Beyond jobs, quality of life drives retention. Bulgaria’s urban areas like Sofia offer vibrant cultural scenes, but rural regions lag in infrastructure. Investing €1 billion in transport, healthcare, and education, as Poland did post-EU accession, can bridge this gap. Affordable housing schemes, like Romania’s First Home program, could support young families—only 30% of Bulgarians under 30 own homes, compared to 50% in Poland.
Education reform is vital. Bulgaria’s universities rank below EU averages, pushing students abroad. Increasing funding by 20%, as Latvia did, and partnering with firms for practical training can align curricula with market needs. Cultural and recreational facilities, like Plovdiv’s art hubs, should expand to smaller cities, making them attractive to youth.
Fostering Entrepreneurship
Encouraging young entrepreneurs is essential to anchoring talent and reversing talent outmigration. Bulgaria’s startup ecosystem currently counts around 1,000 firms, still trailing Estonia’s 1,500 despite Bulgaria’s larger population. With the right policy tools, however, this gap can close quickly. Targeted grant programs modeled after Ireland’s Enterprise Ireland could double the number of startups by 2027, creating an estimated 10,000 new jobs in the process. But for that to happen, Bulgaria must address one of the most persistent bottlenecks: financing.
To make early-stage capital more accessible, the government has introduced tax incentives for angel investors, allowing up to 30% of their investment to be deducted from their tax liability, capped at BGN 250,000. This measure is designed to stimulate local venture capital activity, which is essential for scaling innovation in fields like AI and biotech. Moreover, entrepreneurs now have access to over €200 million in EU venture capital funding in 2024, providing much-needed liquidity to an ecosystem still in its early growth phase.
Equally important are reforms in Bulgaria’s banking sector, long criticized for being risk-averse and bureaucratic, particularly toward small businesses. Recognizing this, the Bulgarian government has partnered with institutions like the European Investment Bank and ProCredit Bank Bulgaria to expand financing opportunities for small and medium-sized enterprises (SMEs), especially those involved in climate tech and innovation. The Bulgarian Development Bank has also stepped in, offering microloans and development financing designed to bypass traditional banking hurdles and support high-potential entrepreneurs.
To complement financial reforms, Bulgaria must strengthen its support infrastructure. Sofia Tech Park, while a step in the right direction, should be expanded with more incubators and mentorship networks, following the Lithuanian model that saw startups grow by 15% annually after Schengen integration. By combining these venture capital incentives, startup-friendly banking, and expanded support networks, Bulgaria can transform its entrepreneurial landscape, attract its diaspora back home, and position itself as a rising innovation hub in Southeast Europe.
Leveraging EU Resources
EU programs offer untapped potential. Erasmus+ and Horizon Europe can fund 5,000 Bulgarian students and researchers annually, building skills to stay local. The EU’s Cohesion Fund, allocating €10 billion to Bulgaria for 2021–2027, should prioritize youth-focused projects like tech hubs and cultural centers, as seen in Portugal. Return migration schemes, like Poland’s “Go Home” campaign, which lured back 100,000 citizens, could be adapted with incentives like housing subsidies.
Learning from Other Countries
Poland and Latvia offer lessons. Poland’s post-2004 investments in infrastructure and IT reduced emigration by 30% by 2015. Latvia’s focus on education and startups cut youth outflow by 25%. Both used public campaigns to promote local opportunities, shifting perceptions. Bulgaria should launch a “Stay in Bulgaria” campaign, highlighting success stories of young professionals, with 80% of youth citing lack of awareness about local prospects.
But awareness alone is not enough. Bulgaria should also look beyond the EU, to the United States, for bold, business-friendly reforms. In the U.S., opening a bank account generally takes 30 minutes or less, forming a business can be done in hours, and state programs actively invest in startups. American universities regularly license publicly funded research to private enterprises, helping launch entire industries while simultaneously creating jobs and revenue. Bulgaria should adopt similar strategies to streamline business registration, reform banking practices to better serve small enterprises, and expanding access to university R&D. By combining European best practices with proven U.S. policies, Bulgaria can foster a startup ecosystem that retains talent, attracts investors, and builds long-term economic momentum.
Challenges and Implementation
Challenges remain, particularly around funding and political will. Bulgaria’s limited public budget restricts its ability to make the large-scale investments needed to transform its economy, but well-managed EU funds can help bridge these gaps. More importantly, attracting private capital, especially from U.S.-based venture funds and institutional investors, requires a stable and predictable political environment. The country’s recent stretch of five elections since 2020 has delayed key reforms and sent the wrong message to global investors. Political volatility doesn’t just stall domestic progress; it actively signals to foreign funders that their capital may be safer elsewhere. Private investors, especially those in the U.S., seek regulatory clarity, long-term planning, and a functioning government that prioritizes economic development over short-term party interests. Bulgaria has the talent, the geographic position, and the EU market access to attract major private funding, but it must match that with political discipline and a national commitment to stability.
Conclusion
Retaining Bulgaria’s youth demands a multifaceted approach: high-value jobs, better living standards, entrepreneurial support, EU-backed programs, and attracting foreign investment. By learning from Poland, Latvia, and others, Bulgaria can reverse brain drain, creating a vibrant economy that inspires its 1.5 million young citizens to stay. With concerted effort, Bulgaria can transform into a hub of opportunity, securing its future as a thriving EU member.