Bulgaria’s senior ruling GERB party will withdraw its draft 2026 budget after coalition tensions and a large protest in central Sofia, party leader Boyko Borissov said on November 27, BTA reported.

The budget, adopted in its first reading last week, triggered a political storm after coalition partners in the budget committee pushed through a rise in social security contributions, a move opposed by the opposition and employers’ organisations.

Thousands of people filled downtown Sofia on November 26, blocking traffic and occupying the “Power Triangle” between the National Assembly, Presidency and Council of Ministers to protest the draft bill. The protest was called for by the opposition Change Continues. The Association of Industrial Capital in Bulgaria (AIKB) also urged participation. Police reported three officers and three protesters injured.

Borissov said on November 27 that he had instructed Prime Minister Rosen Zhelyazkov and Finance Minister Temenuzhka Petkova to withdraw the bill or find a legal mechanism to halt it, as it had already cleared first reading. “Until the dialogue with the tripartite is restored … the old budget will be used,” Borissov told journalists in parliament, according to BGNES.

Zhelyazkov confirmed that the government would reopen talks with employers and unions. “We will sit at the negotiating table, we will try again to restore dialogue… We need to find the golden ratio in income policy,” he told parliament, BGNES reported. He said the government would invite social partners this week to restart the process.

Several options are now under discussion, including revising the draft quickly while keeping the current tax and social security burden, or continuing to operate under the 2025 framework into next year until a new bill is prepared.

Change Continues – Democratic Bulgaria (CC-DB) MP Atanas Atanassov also urged the prime minister and finance minister to withdraw the bill immediately. The opposition and business groups have warned that higher taxes, increased social security contributions and planned expenditure increases could restrain investment and expand the shadow economy.

The turmoil comes as Bulgaria prepares to join the eurozone in January 2026. “We need stability and confidence on the eve of Bulgaria’s entry into the eurozone,” Zhelyazkov said on November 27, indicating he was prepared to revise the budget to restore trust among businesses and the public. 

The European Commission warned on November 25 that Bulgaria’s draft 2026 budget may breach EU fiscal rules.