SOFIA, Bulgaria (AP) — Bulgaria’s government announced Thursday that it is withdrawing its 2026 draft budget, following street protests at home over steep tax increases included in the budget, and warnings from abroad.

The surprise move was announced by the leader of the ruling center-right GERB party, Boyko Borissov, who asked the government to restore dialogue with employers and labor unions to reach consensus on the state finances. The turmoil surrounding the budget comes as the Balkan country prepares to join the euro currency union next year.

The protests have reflected widespread concern over the budget’s economic impact on individuals and businesses. The disputed budget included increases in social security contributions and the doubling of the dividend tax.

Prime Minister Rosen

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