The week began with a personal pondering: How do we fundamentally rethink Bulgaria’s economic platform? Specifically, how do we effectively attract young talent? How can we successfully create Ivy League-level educational pockets? And finally, how do we reinvent incentive models to strategically encourage domestic invention?

While I continue to define the question that prevents sleep, below are the consequential developments from the days behind us – grouped into Policy, Society, and Technology.

1 – Hungary Secures Indefinite U. Exemption from Russian Oil and Gas Sanctions

The United States, under President Trump, granted a full, indefinite exemption to Hungary from sanctions targeting Russian energy exports. This unilateral action secures long-term, low-cost Russian oil and gas supplies for Budapest, circumventing both the spirit and future potential of the EU’s sanctions strategy.

Why it matters: This marks a radical break in economic governance. It highlights the fragility of EU consensus and gives Hungary a bilateral energy advantage. For Bulgaria, this demands a clear strategy on energy sourcing and sanctions adherence, as compliance with the EU’s escalating stance is undermined by this major U.S. exemption.

2 – Leaked Draft of SFDR 2.0 Reveals Major Changes to EU Sustainable Finance Rules

An initial draft of the revised Sustainable Finance Disclosure Regulation (SFDR 2.0) was circulated, suggesting fundamental changes – including the removal of core definitions such as “sustainable investment” and a shift away from mandatory, entity-level Principal Adverse Impact (PAI) disclosures.

Why it matters: This redesigns financial integrity, particularly within ESG. Bulgarian financial institutions must rapidly pivot their reporting and product categorization to align with the new, clearer but more rigid criteria expected in the final version, avoiding regulatory risk and potential greenwashing claims.

3 – India–EU Free Trade Agreement (FTA) Negotiations Conclude Week-Long Session

The latest round of negotiations for the comprehensive India–EU FTA concluded successfully, reporting significant progress on tariff-reduction schedules, intellectual-property rights, and establishing a unified framework for services and investment.

Why it matters: This significantly expands trade integrity. Progress on the FTA creates long-term opportunities but also immediate regulatory demands.