SOFIA, Bulgaria — In a dramatic display of public discontent, thousands of Bulgarians flooded Independence Square in the heart of Sofia on Wednesday evening, November 26, 2025, to protest the government's draft state budget for 2026. Organized primarily through social media by the opposition We Continue the Change – Democratic Bulgaria (WCC-DB) coalition, the rally marked one of the largest anti-government demonstrations in the capital in recent years, drawing an estimated 20,000 participants waving Bulgarian and European Union flags. The protesters' chants of "Resign!" and "No to the mafia budget!" echoed off the facades of the National Assembly and the Council of Ministers buildings, underscoring deep frustrations with Prime Minister Rosen Zhelyazkov's administration and its three-party ruling coalition.
The demonstration, which began around 6 p.m. local time, quickly escalated as the crowd encircled the parliament's main entrances, forming a human chain in a bid to trap lawmakers inside during a key committee session on the budget's second reading. Demonstrators attempted to block vehicles carrying deputies from departing, leading to tense standoffs with riot police who deployed cordons to maintain order. Videos circulating on social media showed protesters hurling bottles and firecrackers at officers, resulting in minor scuffles and three police injuries, though no arrests were reported. One particularly striking image captured a protester climbing atop a police van spray-painted with the word "mafia," symbolizing accusations of entrenched corruption in public spending. Despite the intensity, the approximately three-hour event dispersed peacefully around 9 p.m., after the parliamentary session extended longer than anticipated, allowing lawmakers to exit unimpeded.
At the core of the outrage is the draft budget's fiscal blueprint, the first ever prepared entirely in euros in anticipation of Bulgaria's historic adoption of the single currency on January 1, 2026. This transition, approved by the European Council in July 2025 with a fixed conversion rate of 1.95583 levs per euro, represents a milestone in Bulgaria's EU integration since joining the bloc in 2007. However, critics argue that the €60.2 billion spending plan—equivalent to nearly 46% of projected GDP—prioritizes short-term populism over sustainable reforms, potentially fueling inflation and burdening households and businesses.
Key flashpoints include a proposed two-percentage-point hike in mandatory social security contributions, raising the total rate to 35.2% and the maximum insurable income ceiling to €2,352 monthly. Opponents, including employer associations and economists, warn this could impose an additional €15,000 debt burden per worker through escalated public borrowing, projected to reach €10.5 billion in new debt next year alone. The budget also doubles the tax on dividends from 5% to 10% and mandates businesses to adopt National Revenue Agency-approved software for reporting, measures decried as a "direct assault on the middle class and entrepreneurship." WCC-DB leader Asen Vassilev, a former finance minister who addressed the crowd, lambasted the plan as "pro-inflationary" and reminiscent of "communist-era unchecked spending," arguing it fails to address systemic rot in healthcare and the judiciary while risking a "freezer effect" that erodes real incomes despite nominal hikes in pensions (up 12%) and healthcare wages (€260 million allocated).
The ruling coalition—comprising Boyko Borissov's Citizens for European Development of Bulgaria (GERB), the Bulgarian Socialist Party (BSP), and There Is Such a People (ITN), bolstered by external support from the Movement for Rights and Freedoms – New Beginning—defends the budget as essential for eurozone compliance and social stability. GERB leader Borissov, speaking in parliament, accused the opposition of orchestrating the protests to sabotage the euro transition, which he called a "clear political discomfort" for WCC-DB. Government officials highlight that revenues are expected to rise to €44.71 billion through better tax collection and anti-fraud measures, funding a 2.7% GDP growth forecast amid favorable macroeconomic conditions. Yet, even Brussels has raised alarms: The European Commission flagged the draft in its 2026 economic priorities for potentially breaching EU fiscal rules on debt and deficits, urging Bulgaria to prioritize structural reforms.
This unrest is not isolated. It follows a pattern of demonstrations since the coalition's formation in June 2025, amid lingering corruption scandals and economic pressures from post-pandemic recovery and the Ukraine war's ripple effects on energy prices. Public opinion polls reveal deep skepticism about the euro switch, with a majority opposed or favoring indefinite delay, citing fears of price gouging and loss of monetary sovereignty. Far-right Vazrazhdane party supporters have previously stormed EU offices over the issue. Trade unions decry insufficient social investments, while business lobbies demand scrapping the contribution hikes to preserve Bulgaria's competitive tax regime.
As the budget advances to its third and final reading next week, the coalition's parliamentary majority makes passage all but certain. However, the Sofia rally signals escalating civic mobilization, with WCC-DB vowing more blockades if demands for revisions—including dropping the contribution increase and enhancing spending transparency—go unmet. Analysts warn that failure to heed these voices could deepen political polarization, especially as Bulgaria navigates its euro debut amid a projected 3% inflation rate and 7% unemployment. For now, the streets of Sofia serve as a stark reminder that fiscal policy, once the domain of technocrats, has become a battleground for Bulgaria's democratic soul.
