Bulgarian government withdraws 2026 budget draft after mass protests

The Bulgarian government said it will withdraw the draft state budget for 2026 after mass protests against the plan were staged on Wednesday, the ruling coalition’s Council for Joint Governance announced.

Prime Minister Rosen Zhelyazkov stated that the government will seek to resume dialogue with employers and trade unions.

Zhelyazkov said that the social tension and protest from the previous evening were a clear signal that “we must place the interests of the country, the interests of society above purely political views.”

He called for the restoration of dialogue with business and trade unions, as well as employer organisations, which boycotted some meetings of the joint governance council.

Former Prime Minister Boyko Borissov of GERB said that if a new budget is not adopted by the end of December, the state will operate with this year’s budget until a new one for the next year is approved.

Atanas Atanasov, from the opposition coalition We Continue the Change – Democratic Bulgaria (PP-DB), called on the governing parties and their supporters to reconsider the contentious issues in next year’s budget.

The demonstrations reflected widespread concern over the budget’s economic impact on individuals and businesses, including increases in social security contributions and the doubling of the dividend tax.

On Wednesday, protesters formed a human chain around parliament and tried to block deputies’ cars, prompting police intervention to prevent violence. Police reported that demonstrators threw bottles and firecrackers at officers, injuring three.

Opposition from various social groups and warnings from economists indicated that the draft carried significant risks, as Bulgaria prepares to join the eurozone at the beginning of next year.

The budget set a record for government spending at nearly 46% of GDP. This increase would be financed primarily through higher taxes on businesses and workers, as well as a sharp rise in public debt.

Bulgaria is governed by a minority coalition formed by GERB, the Bulgarian Socialist Party (BSP), and There Is Such a People (ITN).

Quoted from Euronews.