Newsletters
Bulgaria enters the end of 2025 under mounting political and economic tension. The governing coalition alliance of GERB, the Bulgarian Socialist Party (BSP) and smaller centrist groups has struggled to balance ambitious social programs with long-term fiscal stability.
Citizens, trade unions, and business groups have raised concerns over the proposed budget, turning what would normally be a routine fiscal process into a politically charged debate.
Against this backdrop, the government proposed the 2026 draft state budget. Initially, the plan included measures such as a proposed dividend tax, a 2% increase in social security contributions, and other fiscal adjustments aimed at meeting revenue targets for the coming years.
The proposals immediately drew criticism from opposition parties, trade unions, and employer associations, sparking protests in Sofia and increasing pressure on the coalition to reconsider its approach.
Despite early concessions, including partial adjustments to social security contributions, tensions escalated after GERB leader Boyko Borissov signaled that the draft would remain in Parliament pending further consultations.
This led reformist coalition We Continue the Change – Democratic Bulgaria (WCC–DB) to demand a full withdrawal and rewrite of the draft, citing flaws in the macroeconomic framework and the risk of imposing an unfair burden on citizens and businesses.
Ivaylo Mirchev and Asen Vassilev, key figures of WCC–DB, intensified the political pressure in Parliament while announcing a nationwide protest for Monday. Mirchev further accused Delyan Peevski, co-chair of the Movement for Rights and Freedoms (MRF)–New Beginning, of exerting influence over the budget process through BSP deputy Atanas Zafirov, allegations denied but indicative of growing public suspicion about informal decision-making channels.
On Saturday, President Rumen Radev commented on the budget, describing it as ‘a warning of what awaits us in the euro area’ and criticizing the government for acting prematurely under what he called ‘an essentially anti-European administration.’ Radev hailed the withdrawal of the draft as a victory for the people and praised citizens for raising their voices.”
Also Radev, sharply criticized lawmakers he said “hide behind the walls of Parliament,” calling them unworthy of representing Bulgarian citizens.
Within the governing coalition, the BSP has warned that a full withdrawal of the budget could jeopardize critical social commitments, including pensions, maternity benefits and salary adjustments.
The fate of Bulgaria’s 2026 draft budget now rests with the Tripartite Council, scheduled for Tuesday, Dec. 2. Bringing together government officials, trade unions, and employer representatives, the council will review proposed changes and seek consensus on contentious fiscal measures.
Until then, the budget remains formally in Parliament but effectively frozen, with protests and political negotiations continuing to shape its outcome.
1 min read
2 min read
