With No Budget and Nationwide Protests, Bulgaria's Government Still Refuses to Step Down

Prime Minister Rosen Zhelyazkov announced that the government is withdrawing its draft budget for 2026, but will not step down despite the mounting political pressure and the large-scale public protests that erupted across Bulgaria. He stated that the new budget procedure will continue for as long as necessary, with the intention of reviewing every proposal submitted by employers, unions, political parties and the opposition. According to him, the goal is to shape a budget after a broad and open discussion that reflects the positions of all social partners.

Zhelyazkov confirmed that the automatic increase of salaries in the public sector will be removed. The cabinet will also revisit the proposal to change the dividend tax, as well as the planned two percent rise in social security contributions. Discussions in the Ministry of Finance will be held publicly. He added that proposals that have generated significant criticism will be withdrawn, including a concession for the lottery and possible state guarantees at the Bulgarian National Bank related to a potential acquisition of Lukoil. The capital programme will be reassessed, particularly in the areas of defence and transport, while funding for municipalities will remain secured.

The Prime Minister underlined that the cabinet intends to have a state budget for 2026 adopted by the end of 2025. He also made clear that the government will not resign and is prepared to take part in a no-confidence vote requested earlier in the day by the opposition WCC-DB coalition. Zhelyazkov argued that in the weeks before the introduction of the euro, the authorities cannot abandon their responsibilities. He acknowledged the mistake of not entering into timely negotiations with businesses and unions, and reiterated that the draft budget is being withdrawn for this reason.

Zhelyazkov described the ongoing protests as largely social and civic in nature rather than political, saying they reflect a demand for more dialogue, fairness and respect. He said he supported the concerns of the many young people who have joined the demonstrations, stressing that they are searching for their place in Bulgaria, and that the state is obliged to respond. He pointed out that some of the violence seen on Monday night did not come from participants in the main protest, but from provocateurs aiming to provoke confrontation with the police and destabilize the situation.

Despite this, the Prime Minister insisted that the protests were not partisan, even if some political groups were trying to take advantage of them. He stressed that the months ahead are crucial for Bulgaria’s political direction. Completing the adoption of the euro, in his words, is a fundamental step in the country's long process of full integration into the European Union. He warned that various forces are attempting to divert Bulgaria from this path. After more than twenty years of EU membership, he said, the country is now close to finalizing this process and cannot afford to fail just weeks before the deadline.

During the briefing, Zhelyazkov recalled that the government inherited a budget deficit of 18 billion leva, or approximately 9.2 billion euros. He said the cabinet will listen to proposals from the business community to ensure that the economy functions properly in 2026. He admitted that the government made tactical errors by avoiding early communication with social partners and by relying on overly optimistic assumptions on both revenue and spending. He expressed hope that those who share Bulgaria’s European orientation will be constructive partners in the coming period.

The decision to withdraw the draft budget came after intense protests on Monday evening, which turned into the largest demonstration in Sofia in recent years, bringing tens of thousands of people to the streets. Similar protests occurred across the country, including in Varna, Plovdiv, Burgas, Stara Zagora, Dobrich, Sliven, Veliko Tarnovo, Shumen, Ruse, Lovech, Blagoevgrad, Gotse Delchev and other cities. Demonstrators criticised the budget for shifting additional tax and social security burdens onto the private sector, while safeguarding increased spending for state institutions. On Tuesday morning, the government press service informed the media that the withdrawal procedure had already begun, and shortly afterward, Zhelyazkov confirmed it at a briefing.

He explained that the new version of the budget will remove the automatic salary increase in the public sector and reassess the proposed tax changes, including the idea of increasing the dividend tax from 5 to 10 percent. The government will also reconsider the plan to raise the maximum social security income to 4,600 leva, which is approximately 2,352 euros, and the minimum social security income to 1,213 leva, which equals around 620 euros. The two percent increase in pension contributions will also be reviewed. The intention to grant a concession for the lottery will be abandoned.

Despite acknowledging errors, Zhelyazkov reiterated that the cabinet will remain in office and cannot resign at a moment when Bulgaria is preparing to adopt the euro next month. He said that the government has a political obligation to complete this transition and will be, in his words, the last to abdicate. His comments came after both President Rumen Radev and the WCC-DB coalition demanded the resignation of the cabinet. WCC-DB gave the government a deadline to resign by the end of the week and threatened new protests and a no-confidence vote if this does not happen.

The withdrawal of the 2026 budget follows earlier statements from the ruling coalition that the draft would only be amended, not pulled back. Those statements triggered new demonstrations, including a protest last Wednesday. Criticisms from opposition parties, employers and trade unions focused on several key proposals, particularly the increases in social security contributions, the higher income thresholds for social insurance and the dividend tax hike.

"We Continue the Change-Democratic Bulgaria" (WCC-DB) announced that they will seek a vote of no confidence, saying that the government has completely failed and accusing it of acting under the influence of Delyan Peevski. Peevski, who is sanctioned for corruption, is not formally a member of the government but is considered a supporter of the ruling majority. The opposition argues that he exerts significant informal influence over the cabinet and the judiciary. During Monday’s nationwide demonstrations, his name was repeatedly chanted by protesters demanding his removal from public life.

Zhelyazkov urged society to remain calm and to ensure a stable transition into 2026. He insisted that Bulgaria, being only weeks away from joining the eurozone, cannot allow itself to falter now.