site.btaEmployers View Withdrawal of Budget Bill As Response to Call for In-depth Changes

Employers view the withdrawal of the 2026 State Budget Bill as a response to the business sector’s demand for more in-depth changes, but their satisfaction will depend on whether adequate amendments are made, said Rumen Radev, Chairman of the Bulgarian Industrial Capital Association (BICA) and rotating chairman of the Association of Bulgarian Employer Organizations, in a BTA interview.

Earlier on Tuesday, the Council of Ministers proposed that the National Assembly adopt a decision to withdraw the 2026 State Budget Bill. Under the same decision, the National Health Insurance Fund Bill and the Public Social Insurance Budget Bill will also be withdrawn.

“In my opinion, this move by the government is both a response to public pressure to withdraw the state budget bill and a demonstrated intention for deeper changes that are interconnected with all other topics included in the national financial framework,” the BICA Chairman said. “I assume this is the main motive. In addition to that, in my view, we should also consider the letter from the European Commission,” he added.

Radev noted that later on Tuesday, representatives of employers as well as trade unions are invited to a meeting at the Finance Ministry regarding the parameters of the state budget bill.

Radev said that employers firmly oppose any changes to the current tax and social security model. They insist that, first, there must be a shared understanding and broad public consensus on the pension model, as this is key to restoring and building trust in the solidarity-based system, as well as for developing additional voluntary forms of insurance. Only after wide approval of the model can the levels of social security contributions for each stakeholder be discussed, including the contribution rates currently being debated.

Radev recalled that employer organizations have sent a package of proposals related to both budget revenues and expenditures. “We are still not familiar with the final content of the proposals, for example those of the trade unions,” Radev said, adding that this is expected to become clear at Tuesday’s meeting.