SOFIA, Bulgaria — In a significant reversal, Bulgaria’s government has officially withdrawn its contentious budget proposal following days of widespread demonstrations that culminated in violent clashes between protesters and police forces. The decision comes after tens of thousands of citizens took to the streets across major cities, expressing vehement opposition to fiscal measures they believe would adversely impact economic stability.
The proposed budget, which included elevated tax rates, increased social security contributions, and substantial spending hikes, faced fierce criticism from both opposition parties and business associations. Critics argued these measures would deter foreign investment, encourage growth of the shadow economy, and potentially trigger inflation without corresponding improvements in public service efficiency. These concerns are particularly acute as Bulgaria prepares for its anticipated entry into the eurozone at the beginning of next year.
Initially, the administration pledged to retract the draft for comprehensive revision after earlier protests but subsequently reaffirmed its commitment to the proposal, sparking renewed public outrage. Monday night witnessed one of the largest gatherings in the capital, with organizers estimating approximately 50,000 participants in Sofia alone.
The demonstrations, predominantly led by younger citizens, began peacefully with participants chanting slogans such as ‘We will not allow ourselves to be lied to; we will not allow ourselves to be robbed’ and demanding either substantial revisions or the government’s resignation. Signs reading ‘Generation Z is Coming’ and ‘Young Bulgaria Without the Mafia’ highlighted the intergenerational discontent with current policies.
However, tensions escalated dramatically when splinter groups of protesters targeted the headquarters of major ruling parties. These individuals, many clad in black hoodies and masks, engaged in violent acts including throwing projectiles, setting fire to garbage containers, and vandalizing police vehicles. Riot police responded with pepper spray and other crowd control measures, resulting in multiple injuries and at least 10 arrests according to official statements.
The government maintained that its original budget draft was essential for complying with eurozone membership requirements, particularly the mandate to maintain budget deficits below 3% of GDP. Nevertheless, the scale of public opposition has forced a strategic retreat, signaling the growing influence of civic mobilization in shaping national economic policy.