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2w ago

Bulgaria Pulls 2026 Budget After Protests, Plans Revised Submission

The cabinet seeks consultations to meet EU fiscal guidance, keeping the January 1 euro switch on track.

Protesters try to overturn a police vehicle during a demonstration organised by Bulgarian opposition parties and organisations against the proposed financial framework of the country's budget, outside the parliament, Sofia, Bulgaria. REUTERS/Stoyan Nenov
Protesters surrounded the parliament to prevent lawmakers from leaving
SOFIA, BULGARIA - NOVEMBER 26: Protesters hold a demonstration against the 2026 State Budget Bill in Sofia, Bulgaria, on November 26, 2025. Hundreds gathered to halt the budget vote, which includes increased public-sector wage costs alongside higher insurance premiums for private-sector employees. Among the most criticized proposals are raising the external debt to 37.6 billion, increasing pension contributions by 2%, lifting the maximum social security income to 4,600 leva (2,352), raising the minimum social security income to 1,213 leva (620), and doubling the dividend tax rate from 5% to 10%. (Photo by Borislav Troshev/Anadolu via Getty Images)

Overview

  • Prime Minister Rosen Zhelyazkov said the withdrawn plan will be reworked with unions, employers and opposition before returning to parliament, with no date set.
  • The draft, Bulgaria’s first budget calculated in euros ahead of the planned currency adoption, proposed higher social security contributions and a doubled dividend tax to fund more spending.
  • Several thousand people rallied outside parliament in Sofia, with organizers claiming over 20,000, accusing politicians of corruption and calling for resignations.
  • GERB leader Boyko Borissov urged renewed dialogue with social partners after the plan cleared a parliamentary committee on November 18 and passed a first reading.
  • The European Commission warned the proposal risked breaching EU limits on expenditure growth, and the IMF pressed for tighter fiscal policy.