Bulgaria’s center-right minority government resigned Thursday under the weight of weeks-long anti-corruption protests, plunging the nation into political uncertainty just weeks before it is set to adopt the euro on Jan. 1, 2026.

Prime Minister Rosen Zhelyazkov announced the decision minutes before parliament was to vote on the sixth no-confidence motion against his cabinet, sparing his administration a potential defeat while leaving Europe’s poorest member state at a crossroads.

"The government resigns today,” Zhelyazkov told reporters after a meeting with ruling party leaders, echoing the demands of tens of thousands of demonstrators who filled Sofia’s streets the night before.

The resignation marks yet another episode in Bulgaria’s chronic political instability, as the country has held seven national elections in the past four years amid accusations of oligarchic control, state capture, and pervasive graft.

Controversial budget and corruption concerns

The latest unrest erupted after the government unveiled its 2026 budget, drafted entirely in euros in preparation for the currency switch.

The plan proposed higher social security contributions, increased taxes on dividends, and expanded public spending on pensions and infrastructure.

Critics called it regressive, burdening middle- and low-income households, while employers branded it the "worst budget in 30 years,” warning it could stifle growth in a country where GDP per capita lags the EU average by over 50%.

The first demonstrations on November 26 drew around 20,000 people, primarily organized by the opposition We Continue the Change – Democratic Bulgaria coalition, who sought to disrupt parliamentary budget discussions.

Initial peaceful rallies turned tense, resulting in minor clashes with police and temporary blockades.

By Nov. 27, Zhelyazkov suspended the budget process, pledging dialogue with unions and businesses, with support from GERB party leader and former Prime Minister Boyko Borissov.

Protest momentum surged on December 1, driven by Gen Z activists mobilized through TikTok and Instagram, attracting between 50,000 and 100,000 people – the largest demonstrations since the 2020-2021 anti-corruption wave.

While family-friendly at first, parts of the protests escalated into vandalism and clashes near offices of ruling parties, leading authorities to arrest 71 people.

The government withdrew the budget that day, but demands intensified, calling for Zhelyazkov’s resignation and snap elections.

By Dec. 3, protests had spread nationwide and abroad, including demonstrations in Plovdiv, Varna, Burgas, Ruse, and diaspora rallies in Vienna, Brussels, and New York.

President Rumen Radev urged lawmakers to heed the "energy of the people” and floated the idea of early elections.

Opposition MPs submitted the no-confidence motion on Dec.5, citing "endemic corruption” and economic mismanagement.

Wednesday’s rallies in Sofia marked a crescendo, with more than 100,000 filling central squares and thousands more marching in 25 cities nationwide.

Protesters projected slogans like "Resignation” and "For Fair Elections” onto parliament, while symbolic props mocked government figures.

University students and professionals called for reform, emphasizing judicial overhaul as key to dismantling entrenched oligarchic networks.

Political instability and graft

Bulgaria’s turbulence stems from its post-communist transition and repeated political deadlocks.

Following the Oct. 27, 2024, snap elections, Zhelyazkov’s GERB-UDF coalition formed a fragile minority government with tacit support from the Movement for Rights and Freedoms (DPS), drawing accusations of shielding corrupt figures like DPS co-leader and media mogul Delyan Peevski.

Transparency International ranks Bulgaria as the second-most corrupt EU state, with both Peevski and Borissov emblematic of "state capture” that has siphoned billions in EU funds.

The protests echo prior uprisings, including the 2020 wave that toppled Borissov’s government, fueled by graft scandals and broader grievances such as underfunded healthcare, judicial inefficiency, and high poverty rates.

Immediate fallout and the road ahead

Although Zhelyazkov preempted the no-confidence vote, parliament remains intact.

Under Bulgaria’s constitution, President Radev must appoint a caretaker prime minister within seven days, likely triggering fresh elections in the next two months.

Opposition leaders insisted the euro adoption will proceed as planned despite public skepticism; a June 2025 poll showed 46.8% of Bulgarians opposed the switch.

Economically, instability threatens Recovery and Resilience Plan funds ($6.7 billion) for green and digital initiatives. Inflation hovers at 3.2%, unemployment at 4.1%, and Brussels is closely monitoring Bulgaria’s compliance for full Schengen access.

The protests, fueled by a youth-led, cross-ideological coalition, reflect a generational push against entrenched elites.

Radev called the unrest a "vote of no confidence in the cabinet,” urging MPs to choose "dignity over dependence.” With euro adoption imminent, Bulgaria’s stability hangs in the balance, testing whether this "Gen Z revolution” can finally dismantle the entrenched networks protesters decry.