Bulgaria withdraws 2026 budget after protests over tax hikes and spending
Bulgaria’s government has withdrawn its 2026 draft budget after mass street protests and warnings from the EU and IMF over steep tax hikes and rising expenditure.
GERB party leader Boyko Borissov announced the decision Thursday, urging the government to restart talks with employers and unions to rebuild consensus. The reversal comes as Bulgaria prepares to join the eurozone next year.
The draft budget had sparked public anger with plans to raise social security contributions and double the dividend tax. Prime Minister Rosen Zhelyazkov said the bill — already approved in a first reading — will be revised to correct its “defects” and ensure a balanced approach ahead of eurozone entry.
Opposition parties and business groups warned that the budget’s higher taxes and expanded spending would deter investment, fuel the shadow economy and increase inflation. Earlier this week, the European Commission said the proposal risked breaching EU spending limits, while the IMF urged a tighter fiscal policy.
Protests peaked Wednesday night as thousands gathered outside parliament to denounce the tax increases and demand greater transparency. Organizers estimated over 20,000 demonstrators, criticizing record-high spending levels projected at about 46 percent of GDP next year.
