Bulgarian government resigns after weeks of street protests

SOFIA (Reuters) - Bulgaria's government resigned on Thursday after less than a year in power, following weeks of street protests over its economic policies and its perceived failure to tackle corruption.

Prime Minister Rosen Zhelyazkov announced the decision in a televised address just minutes before parliament was due to vote on a no-confidence motion.

The resignation comes less than three weeks before Bulgaria is due to join the euro zone on January 1.

"Our coalition met, we discussed the current situation, the challenges we face and the decisions we must responsibly make," Zhelyazkov said, confirming that the government would step down.

Thousands of Bulgarians rallied on Wednesday evening in Sofia and dozens of other towns and cities, the latest in a wave of demonstrations highlighting public anger over endemic graft and successive governments' inability to root it out.

"We realise that the protest was against arrogance and conceit, this is not a social protest, but a protest for values," Zhelyazkov said. "It was not a meeting of political opponents over policies but over attitudes, and therefore it unites different components of Bulgarian society."

Many of the protesters are younger, urban professionals who strongly support Bulgaria's accession to the euro zone and want it to become more part of the European mainstream.

Bulgaria remains the poorest and most corrupt member state in the European Union, which it joined in 2007.

CALL FOR FREE AND FAIR ELECTIONS

Last week, Zhelyazkov's government withdrew its 2026 budget plan, the first drafted in euros, after protests erupted over proposals to raise social security contributions and taxes on dividends to fund higher state spending.

Despite the retreat, demonstrations continued in a country that has held seven national elections in the past four years, most recently in October 2024, amid deep political divisions.

"This (resignation) is the first step towards Bulgaria becoming a normal European country," said Asen Vassilev, leader of the opposition Continue the Change - Democratic Bulgaria (CC-DB), the party that filed a no-confidence motion.

"The next step... is to hold fair and free elections, not elections marred by electoral manipulation, as was the case with the last parliamentary elections," Vassilev added.

President Rumen Radev will now ask the parties represented in parliament to try to form a new government. If they fail - as appears likely - he will appoint an interim administration to run the country until a new election can be held.

Boyko Borissov, leader of the centre-right GERB party that led the outgoing coalition, defended its record, which included ushering Bulgaria into the European Union's open-border Schengen zone and completing preparations to join the euro.

"We have nothing to be ashamed of over these past 11 months," Borissov told a news conference at his party's headquarters. "After today, we will be a strong opposition; we will work to win the (next) elections."