Bulgaria will resubmit draft 2026 budget after protests

SOFIA (Reuters) -Bulgaria's government will resubmit to parliament for approval its 2026 budget plan, the first drafted in euros before the country adopts the currency on January 1, the prime minister said late on Thursday, following protests in the capital Sofia.

The aim is to allow more time for consultations with opposition parties, trade unions and employers, Prime Minister Rosen Zhelyazkov said, after a parliamentary committee had adopted the budget plan on a first reading on November 18.

Opposition parties and other organisations mobilised large numbers of protesters on the streets of central Sofia on Wednesday evening against the government's plans to hike social security contributions and taxes on dividends to finance higher spending and also against state corruption.

Following a meeting with representatives of parliamentary groups, Zhelyazkov, who heads a minority government, said his cabinet would seek to "re-establish" dialogue with workers and employers before resubmitting the budget to parliament.

He did not give a date for doing so.

Around half of Bulgaria's public oppose euro adoption, fearing that it will impinge on sovereignty and retailers will exploit the changeover to raise prices.

The president of the European Central Bank, Christine Lagarde, warned this month that inflation may jump when the Balkan state joins the euro zone.

(Reporting by Angeliki Koutantou and Stoyan NenovEditing by Gareth Jones)