Bulgaria’s government said on December 2 it is withdrawing its controversial 2026 budget proposal after mass protests against the plan drew tens of thousands of people onto the streets and triggered clashes between police and demonstrators.

The rallies, the largest the Balkan country has seen in years, erupted on December 1 in Sofia and at least a dozen other cities including Varna, Plovdiv and Burgas. Organisers said around 50,000 people gathered in central Sofia, filling the square around the National Assembly, the Council of Ministers and the presidency.

Chanting “Resignation!” and “We will not allow ourselves to be robbed,” demonstrators waved Bulgarian and EU flags and held banners reading “Generation Z is Coming” and “Young Bulgaria Without the Mafia”.

The protest began peacefully but later descended into violence as groups of masked youths threw bottles, stones and firecrackers at police and party offices. Riot police pepper-sprayed crowds, while garbage containers were torched and police vehicles vandalised. Around 70 people have been arrested.

The unrest reflects anger not only over the draft budget but also over longstanding grievances about corruption, cronyism and a lack of accountability in government. Bulgaria, an EU member of 6.4mn people, is rated among the bloc’s most corrupt countries.

Controversial budget abandoned

The government said it would formally withdraw the draft budget after initially pulling it back informally last week. Opposition parties, echoing protester demands, are now calling for the resignation of Prime Minister Rosen Zhelyazkov’s minority coalition.

The draft budget had proposed higher taxes, increased social security contributions and a rise in public spending. Business groups and opposition parties warned the measures would drive investment away, expand the shadow economy and stoke inflation at a time when Bulgaria is preparing to adopt the euro on January 1, 2026.

Officials argued the budget would keep the deficit below the eurozone’s 3% threshold. Critics countered that the spending increases would be financed largely through tax hikes on workers and companies and a sharp rise in public debt.

Despite government assurances that contentious measures — including a dividend tax increase and new software requirements for traders — would be revised, opponents said legal withdrawal was necessary before any changes could be made.

Varna mayor Blagomir Kotsev, who was released from custody last week after supporters crowdfunded his bail, joined demonstrations in the Black Sea city. Solidarity protests have also taken place abroad, with Bulgarians gathering outside their embassy in London on November 30.

Political strains deepen

The protests add pressure on Zhelyazkov’s fragile cabinet, formed in January after the October 2024 snap election — the seventh since 2021 — again produced a fragmented parliament. GERB, led by former prime minister Boyko Borissov, emerged as the largest party with 69 of 240 seats and relies on an informal understanding with the Movement for Rights and Freedoms (DPS). DPS heavyweight Delyan Peevski, a polarising figure frequently invoked by protesters, is sanctioned by the United States and United Kingdom for corruption.

The government has already faced five no-confidence motions this year. The cabinet is now expected to present amendments to the budget later this week, though it remains unclear whether the revisions will ease public anger — or whether the protests will intensify into a wider challenge to the government’s survival.