Bulgaria's Parliament has approved an extension of the 2025 budget to cover the first three months of 2026, or until a new 2026 state budget is adopted. This decision follows the recent resignation of Prime Minister Rosen Zhelyazkov's coalition government, triggered by mass anti-corruption protests and political instability, setting the stage for potential snap elections.
Seven individuals, including three serving police officers, have been charged in Bulgaria for participation in an organized criminal group involved in arson, bribery, and narcotics trafficking in Sofia and the Lovech region. The charges follow a five-month investigation by the Lovech District Prosecutor's Office.
Bulgarian President Rumen Radev is set to begin consultations with parliamentary groups on Monday, December 15, 2025, to form a new cabinet. This follows the resignation of Prime Minister Rosen Zhelyazkov's government on December 11, triggered by widespread anti-corruption protests over a controversial 2026 budget plan and economic mismanagement. The political crisis unfolds weeks before Bulgaria's planned eurozone entry.
Bulgaria's government, led by Prime Minister Rosen Zhelyazkov, resigned on December 11, 2025, following mass protests against economic mismanagement, pervasive corruption, and concerns surrounding the nation's upcoming eurozone entry. The resignation was approved by parliament on December 12, 2025.
A Bulgarian court on December 11, 2025, rejected Lebanon's request to extradite Igor Grechushkin, the Russian-Cypriot owner of the ship linked to the 2020 Beirut port explosion. The decision cited insufficient assurances from Lebanese authorities regarding the death penalty. Grechushkin remains in custody, and prosecutors plan to appeal the ruling.
A recent European Investment Bank (EIB) report highlights Bulgaria's persistent struggle with the lowest investment activity among EU member states. Geopolitical and domestic uncertainties, coupled with challenges like skilled staff shortages and regulatory compliance, continue to deter investment, despite some cautious optimism among businesses.
Germany has issued an urgent travel alert for Bulgaria, advising heightened caution due to ongoing political instability, elevated crime rates, and new security protocols. Travelers are urged to monitor local advisories and be vigilant.
Bulgaria's opposition alliance We Continue the Change - Democratic Bulgaria (WCC-DB), supported by Alliance for Rights and Freedoms (ARF) and MECH, submitted a no-confidence motion against Prime Minister Rosen Zhelyazkov's government on December 5, 2025. The motion, the sixth against the cabinet, targets its economic policies amidst widespread public protests.
Tens of thousands of Bulgarians protested nationwide against the draft 2026 state budget, leading to its withdrawal. Demonstrations in Sofia and other major cities opposed proposed tax hikes, increased social security contributions, and record government spending, alongside broader concerns about corruption and the adoption of the euro. Clashes with police occurred in Sofia.
Bulgaria will host the opening three stages of the 2026 Giro d'Italia from May 8-10, marking the 16th time the prestigious cycling race begins outside Italy. The route, unveiled in Rome on December 1, 2025, features stages along the Black Sea coast, through Veliko Tarnovo, and concluding in Sofia before the race transfers to Italy.
Bulgarian Prime Minister Rosen Zhelyazkov stated on November 24, 2025, that Bulgaria is prepared to actively participate in efforts to find peace solutions for Ukraine. He emphasized the crucial need for coordination among the United States, the European Union, and Ukraine to achieve a lasting resolution.
The International Monetary Fund (IMF) has recommended that Bulgaria adopt a tighter fiscal policy and reorient spending towards quality investment. This advice follows the IMF's 2025 Article IV Consultation, citing the country's robust domestic demand, cyclical economic position, elevated inflation, and rapid credit growth. The IMF also highlighted the upcoming euro adoption as a key opportunity.
The European Commission has referred Bulgaria to the EU Court of Justice for failing to meet its ammonia emission reduction commitments under the NEC Directive. This action, taken on November 21, 2025, is part of a broader move against several EU member states for air pollution non-compliance.
A coordinated international operation led by Bulgarian authorities and supported by Europol and Eurojust resulted in 35 arrests in Bulgaria and the dismantling of a criminal network involved in large-scale trafficking of cultural goods. Over 3,000 artifacts valued at more than €100 million were seized, with the network's illicit activities spanning over 16 years and involving an estimated €870 million in stolen goods.
The European Union is significantly enhancing its anti-money laundering and counter-terrorist financing efforts with the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). Announced by Bulgarian MEP Emil Radev, this new body will centralize supervision and enforce stricter rules across the bloc.
A joint analysis by the European Central Bank and the University of Mannheim indicates that natural disasters have cost Bulgaria's economy at least €1 billion (approximately $1.15 billion) in 2025, representing 1% of its GDP. The country has faced devastating floods, wildfires, and heatwaves, highlighting its vulnerability due to outdated infrastructure and reliance on agriculture. This figure is preliminary, with further losses anticipated.
The UK Office of Financial Sanctions Implementation has issued a temporary exemption for Lukoil's Bulgarian subsidiaries, including the Burgas refinery and associated gas stations, until February 14, 2026. This measure aims to ensure Bulgaria's energy security and prevent fuel shortages following recent sanctions on the Russian oil giant.
Sofia's beloved German Christmas Market, the oldest in the Bulgarian capital, is set to open its doors on November 14, 2025, in the City Garden. Celebrating its 15th anniversary, the market will offer traditional German delicacies, mulled wine, handcrafted goods, and a diverse cultural program until December 21, 2025.
Bulgaria's Parliament has approved legislation to appoint a special manager for the Lukoil Neftochim Burgas refinery. Deputy Speaker Kostadin Angelov stated this decision ensures fuel supply stability and protects national interests, responding to impending US sanctions on Lukoil set for November 21.
Bulgaria's consumer confidence indicator dropped by 4.0 percentage points in October 2025, reaching -25.1% from -21.1% in July, according to the National Statistical Institute. Pessimism deepened across economic outlook, household finances, and unemployment expectations.
