Bulgaria’s government resigns; political uncertainty ahead

The resignation of the Bulgarian government on the 11th of December puts an end to an unpopular coalition, but is likely to usher in a period of political instability just weeks before the country joins the eurozone, Reuters reports.
Bulgaria, a member of the European Union and NATO, has held seven parliamentary elections in the past four years, and the political landscape is divided, making it difficult to hold elections for long. The outgoing government took office in January and had hoped to at least see the euro adopted on the 1st of January, 2026, but after weeks of protests over corruption in the new budget, Prime Minister Rosen Zhelyazkov announced his resignation.
Zhelyazkov’s resignation was also called for by Bulgarian President Rumen Radev.
The reaction on the streets of the capital Sofia after the government’s resignation was muted, but some were cautiously optimistic about at least one thing: that the government was listening to the protesters. One protester said it was long overdue for a resignation. He did not doubt that there were also sensible, intelligent people in the government who could come up with something sensible and put an end to the abuses that had been observed.

If a new government is not formed, Bulgaria faces another round of elections.

Dimitar Markov, director of the Law Program at the Center for Democracy Studies, said there was a risk of another round of elections.
The protests began in late November when Zhelezkov’s three-party government presented a draft budget that included increases in social security contributions and higher taxes on dividends to cover the country’s growing spending. They were fueled by increased spending on the police, security services and justice system, institutions that have lost credibility among Bulgarians over the years, and Bulgaria is considered one of the most corrupt countries in the EU. The budget bill was withdrawn, but anger remained.
Many had already been angered by other government decisions, including a crackdown on the pro-European opposition. It led to Blagomir Kotsev, the mayor of the seaside city of Varna, spending months in jail on corruption charges. Blagomir denies any wrongdoing.
The protests intensified on the 10th of December, when tens of thousands of Bulgarians took to the streets to demand the government’s resignation. The protests marked one of the largest anti-government demonstrations since the fall of communism in 1989, and the diverse demographic and political makeup of the protesters set them apart from previous protests.
Markov said

tensions had been building for a long time, and the budget bill was the final straw.

Many of the protesters were urban professionals who support the euro and want the country to integrate into European politics after a difficult transition to democracy marred by organized crime and corrupt politicians. However, there were also eurosceptics among the demonstrators who fear that the euro will increase inflation and believe that Sofia needs to maintain ties with Moscow.
The president will now give parliament’s largest party, GERB, the chance to form a new government, but it is already clear that it will have difficulty winning support in the nine-party parliament. If GERB fails to form a government or refuses to do so, the other two largest parties will be given the chance. If that fails, Radev will appoint a caretaker government and call early elections. This could push Bulgaria into another round of re-elections if no one is able to form a functioning coalition.
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