Bulgarian Government Withdraws 2026 Budget After Mass Protests Across the Nation

Nationwide Protests Force Budget Withdrawal

Bulgaria's government has officially withdrawn its draft 2026 state budget following widespread protests that saw tens of thousands of citizens take to the streets across the country. The decision, announced on Tuesday, December 2, 2025, came after a series of demonstrations, with the largest rallies occurring on Monday, December 1, 2025, and Wednesday, November 26, 2025.

Protesters gathered in numerous cities, including the capital Sofia, Plovdiv, Varna, Burgas, Ruse, Blagoevgrad, Shumen, Yambol, Lovech, Veliko Tarnovo, Dobrich, Sliven, and Pleven. Organizers estimated that approximately 50,000 people protested in Sofia on December 1, with another 50,000 joining demonstrations in other major cities. The opposition coalition 'We Continue the Change – Democratic Bulgaria' (WCC-DB) was instrumental in organizing these rallies.

Key Contentions in the Draft Budget

The proposed 2026 budget faced strong opposition primarily due to several key measures:

• An increase in the state pension insurance contribution by 2 percentage points, raising it from 14.8% to 16.8%.
• A plan to double the tax on dividends to 10%.
• Concerns over record-high government spending, projected at nearly 46% of GDP.

Opponents argued that these measures would disproportionately affect businesses and workers, potentially leading to increased public debt and hindering investment. Beyond fiscal policies, protesters also voiced broader dissatisfaction with perceived government corruption and called for systemic change.

Euro Adoption and Public Sentiment

Adding to the public's discontent were plans for Bulgaria to adopt the euro currency on January 1, 2026. Many Bulgarians expressed fears that the transition from the national currency, the lev, to the euro could lead to increased inflation and impact national sovereignty. European Central Bank President Christine Lagarde had previously warned of potential inflation increases upon Bulgaria's entry into the Eurozone.

Government Response and Aftermath

Initially, on November 27, 2025, Prime Minister Rosen Zhelyazkov's government announced it would withdraw the budget for revision following earlier protests. However, a subsequent reversal of this decision fueled further outrage and led to the massive demonstrations on December 1. During the protests in Sofia, some individuals clashed with police, throwing objects and vandalizing property, including the headquarters of the ruling GERB party and the Movement for Rights and Freedoms (DPS). Police used pepper spray, resulting in ten arrests and two injured officers.

Following the sustained pressure, the government formally withdrew the 2026 State Budget Bill, along with related legislation for the National Health Insurance Fund and Public Social Insurance. Prime Minister Zhelyazkov indicated that the government would review the investment program and did not rule out operating with an extended budget from the current year. Meanwhile, President Rumen Radev has called for the government's resignation and early elections, a sentiment echoed by opposition leader Assen Vassilev, who plans a no-confidence motion if the government does not step down.