The year 2025 entered Bulgaria’s political history as one marked by the collapse of a regular government under public pressure and by decisive steps toward eurozone membership, according to BTA. After a prolonged cycle of early parliamentary elections, a cabinet led by Prime Minister Rosen Zhelyazkov was finally approved on January 16, securing 125 votes in favor and 114 against, with no abstentions. The government rested on the support of GERB, BSP-United Left, Democracy, Rights and Freedoms (later renamed the Alliance for Rights and Freedoms, APS), and There Is Such a People (TISP). Opposition came from "We Continue the Change-Democratic Bulgaria" (WC–DB), Revival, DPS-New Beginning, and Morality, Unity, Honour (MECH). The cabinet formally took office after swearing an oath before the National Assembly.

A fragile majority and mounting pressure

The governing majority proved unstable from the outset. Several months into the mandate, ARF withdrew its backing, arguing that instead of dismantling what it described as the “Peevski model,” the government was entrenching it further. Over its 11 months in office, the Zhelyazkov cabinet faced six motions of no confidence. The first four were initiated by Vazrazhdane, MECh, and Velichie, while the final two came from CC–DB. Until early July, CC had refrained from supporting no-confidence votes, maintaining that Bulgaria should not be pushed away from its European path. This position shifted after July 8, when the decision for Bulgaria to adopt the euro on January 1, 2026, was finalized.

Protests, budget turmoil, and resignation

Public anger escalated sharply toward the end of the year, driven largely by the draft 2026 budget. The proposal included a two-percentage-point increase in pension insurance contributions and a doubling of the dividend tax from 5% to 10%. The first major protest against the draft budget took place in Sofia on November 26. Although the government promised revisions after talks with trade unions and employers, dissatisfaction continued. On December 1, thousands again demonstrated across the country, demanding the budget’s withdrawal.

Tensions peaked in early December. On December 11, just before the sixth vote of no confidence and following renewed mass protests, Zhelyazkov announced his resignation. The night before, large crowds filled central Sofia, including the area around the Council of Ministers, Parliament, and the Presidency, known as the “triangle of power.” Demonstrations were also held by Bulgarians abroad, notably in Brussels and Vienna, drawing international media attention from outlets such as Reuters and AFP. CC–DB organizers described the protests as a demand for the removal of a “puppet government” and the permanent exclusion of Boyko Borissov and Delyan Peevski from power.

President Rumen Radev publicly stated that resignation was unavoidable and that early elections were the only viable solution. In the wake of the protests, the draft laws for the state budget, the National Health Insurance Fund, and Public Social Insurance for 2026 were withdrawn.

Extension budget and eurozone entry

With Bulgaria weeks away from adopting the euro, Parliament opted not to pass a full new budget. Instead, lawmakers approved an extension budget covering the first three months of 2026. Trade unions opposed this approach, while BSP–United Left insisted on a full budget to safeguard social policies. GERB–UDF and TISP backed only the extension law. Under this temporary arrangement, public-sector employees not earning the minimum wage received a one-off indexation equal to accumulated annual inflation as of December 31, 2025. In effect, Bulgaria will enter the eurozone using its 2025 budget converted into euros.

The original 2025 budget, adopted after nearly 22 hours of debate in March, avoided tax hikes and fixed the deficit at 3% of GDP to meet eurozone requirements. During the year, lawmakers also passed significant amendments to the Energy Act, ensuring households remain indefinitely on the regulated electricity market.

Eurozone decisions and political clashes

On June 4, the European Commission and the European Central Bank released positive convergence reports confirming Bulgaria’s readiness to adopt the euro on January 1, 2026. This triggered sharp reactions in Parliament, with Vazrazhdane MPs blocking access to the rostrum and supporters of the Bulgarian lev protesting outside. Further legislative steps followed: on July 30, Parliament adopted amendments to the Euro Introduction Act, later promulgated in August, mandating dual price displays in euros.

In December, MPs rejected President Radev’s proposal for a national referendum on the euro, a motion backed by Vazrazhdane. The proposal was defeated by 135 votes.

Reforms, institutions, and energy disputes

Beyond eurozone preparations, Parliament worked on legislation tied to the Recovery and Resilience Plan, including whistleblower protection, changes to insult and defamation laws, mandatory mediation procedures, and the introduction of personal insolvency for individuals unable to service debts exceeding ten minimum wages for over a year.

Institutional reforms included transferring the appointment of the heads of SANS, SATO, and the State Intelligence Agency from the president to Parliament, and removing SANS’s role in providing transport for the presidency. Lawmakers also addressed the fallout from U.S. sanctions against Russia’s Lukoil, temporarily banning exports of petroleum products and appointing a special commercial administrator after overriding a presidential veto. Former National Revenue Agency chief Rumen Spetsov was named to the post.

Appointments and political reshuffles

The year also saw the renewal of key regulatory bodies and the election of a national ombudsman, Velislava Delcheva, and deputy ombudsman Maria Filipova. Kiril Valchev was re-elected as Director General of the Bulgarian News Agency. In October, Raya Nazaryan replaced Nataliya Kiselova as Chair of Parliament, following internal tensions and the introduction of a rotating speakership.

Party landscapes shifted as well. Atanas Zafirov became BSP chair, Slavi Trifonov was re-elected to lead TISP, and Yes, Bulgaria appointed Bozhidar Bozhanov and Ivaylo Mirchev as co-chairs. Continue the Change elected Assen Vassilev as chair after Kiril Petkov stepped down amid allegations and internal controversy. Supporters of Ahmed Dogan formed the Alliance for Rights and Freedoms after Delyan Peevski consolidated leadership of MRF.

Varna mayor case and rule of law concerns

One of the most contentious cases of the year involved Varna mayor Blagomir Kotsev from CC–DB. Arrested on corruption charges linked to a failed procurement tender, Kotsev spent nearly five months in detention before being released on a BGN 200,000 bail, equivalent to about EUR 102,260. His party and supporters described the case as politically motivated. Protests in Varna, Sofia, and other cities followed, while the Renew Europe group in the European Parliament raised concerns about democratic standards and the rule of law in Bulgaria.

An unsettled end to the year

By late December, with Parliament heading into recess until January 10 and the next plenary session set for January 14, Bulgaria closed 2025 in a state of political uncertainty. The resignation of the government, unresolved questions over early elections, and the imminent adoption of the euro ensured that the country entered 2026 facing both historic change and deep divisions.