Protests in Bulgaria: government withdraws draft budget and resigns

Photo: Reuters

Bulgaria’s government has withdrawn the draft state budget for 2026 and resigned amid large-scale protests against higher taxes and social security contributions, as well as allegations of election fraud and corruption. The political crisis unfolded on the eve of the country’s transition to the euro, although most experts agree that governance failures and a loss of public trust — rather than the currency reform itself — were the key trigger.

“The voice of society must be heard”

Bulgaria’s parliamentary budget committee approved the country’s first financial plan drafted in euros at first reading on November 18, Reuters reports. However, from late November the country saw mass street protests. As a result, the budget proposal was withdrawn, and on December 11 the cabinet led by Prime Minister Rosen Zhelyazkov announced its resignation. The prime minister said that power derives from the people and that the voice of society must be heard. At the same time, he highlighted the cabinet’s achievements, including progress toward eurozone accession and improvements in budget indicators.

The resignation was announced just hours before a scheduled no-confidence vote initiated by the Continue the Change – Democratic Bulgaria coalition, BTA reports. Until a new cabinet is formed, Zhelyazkov’s government will continue to perform its duties.

Causes of the protests

The latest surge in street protests became another chapter in a prolonged political crisis. This marks Bulgaria’s ninth change of government in the past five years, Euronews notes. The immediate trigger for the demonstrations was the 2026 budget proposal, which envisaged higher taxes and social insurance contributions to finance increased public spending.

A deeper cause of the unrest has been growing frustration with corruption within the political elite and its impact on living standards. Protesters, particularly young people, point to worsening access to healthcare, limited opportunities for education and employment, and a lack of prospects inside the country.

Public anger has focused primarily on former prime minister Boyko Borissov, who led the government during several terms between 2009 and 2021 and remains the leader of the GERB party, as well as on Delyan Peevski, whose DPS party provided parliamentary backing to the minority coalition. Protesters demanded fair and free elections, arguing that the previous electoral campaign was marked by vote manipulation, vote-buying and falsification of results.

Against the backdrop of the protests, debate over Bulgaria’s transition to the euro has intensified, although the demonstrations have not been anti-European in nature. A survey conducted in June on behalf of the Ministry of Finance showed a divided public opinion: 48% of respondents oppose adopting the single currency, fearing a loss of national sovereignty and price increases due to the conversion from the Bulgarian lev to the euro. At the same time, 46.5% support the change. Bulgaria, with a population of about 6.4 million, is set to switch from the lev to the euro on January 1, becoming the eurozone’s 21st member. The country has been a member of the European Union since 2007.

Outlook

As a result, Bulgaria is entering 2026 without an approved budget and with a caretaker government in place — just ahead of eurozone accession. President Rumen Radev is expected to appoint an interim cabinet and set a date for early parliamentary elections. Mario Bikaraski, Senior Europe Analyst at Verisk Maplecroft, notes that there is broad consensus in Bulgarian society on the need for fiscal restraint, but repeated attempts to raise taxes risk further fuelling social tensions. Deputy Minister of Labour and Social Policy Ivan Krastev, in turn, warned that without an agreed budget, social support payments — including assistance for citizens living below the poverty line — could be affected.

Analysts at International Investment note that Bulgaria is entering 2026 facing a dual challenge: the need to swiftly prepare a new budget amid public pressure, while simultaneously ensuring a smooth transition to the euro — a process that will largely determine the country’s economic and political stability in the years ahead.