The Bulgarian government has withdrawn its draft budget for 2026 after tens of thousands of protesters filled central Sofia on Wednesday, voicing anger over proposed tax hikes and higher social security contributions, according to Euro News. The rare show of nationwide discontent pushed the ruling coalition to reverse course, the Council for Joint Governance announced late in the day.
Prime Minister Rosen Zhelyazkov acknowledged that the unrest sent an unmistakable message. “We must place the interests of the country, the interests of society above purely political views,” he said, calling for a reset in negotiations with business groups, employer organizations, and trade unions, many of whom had boycotted recent meetings.
The proposed budget had sparked widespread alarm for its plan to double the dividend tax and raise social security contributions, measures critics warned would burden both households and companies at a sensitive moment. Bulgaria is preparing to join the eurozone early next year, and economists cautioned that the draft introduced serious economic risks, including a surge in public debt. Government spending in the plan would have reached a record 46 percent of GDP.
Wednesday’s protest drew roughly 20,000 people who formed a human chain around parliament and attempted to block lawmakers’ vehicles. Police intervened as tensions escalated; officers reported being hit with bottles and firecrackers, leaving three injured.
Former Prime Minister Boyko Borissov of GERB noted that if no new budget is passed by year’s end, Bulgaria will continue operating under its current fiscal plan. Opposition groups, including the We Continue the Change–Democratic Bulgaria coalition, urged the government to reassess the most controversial provisions.
Bulgaria is currently governed by a minority coalition of GERB, the Bulgarian Socialist Party, and There Is Such a People.
