site.btaUPDATED Tripartite Dialogue Resumes as Finance Ministry Seeks Consensus on 2026 State Budget Bill

Commenting on the 2026 State Budget Bill at a briefing at the Finance Ministry on Friday, Finance Minister Temenuzhka Petkova said that the dialogue within the National Council fo Tripartite Cooperation has been restored and that another meeting with the social partners will take place in early December to discuss specific measures proposed by business and trade unions in order to reach a balanced solution acceptable to all. Petkova spoke to reporters following a meeting with employer organizations and trade unions on the preparation of the 2026 State Budget Bill, including the draft budgets of the Public Social Insurance (PSI) and the National Health Insurance Fund (NHIF).

Petkova explained that the 2026 State Budget Bill has not been withdrawn, but that the budget procedure has been postponed. Delyan Dobrev, Chair of the Parliamentary Budget and Finance Committee, said that parliamentary rules allow for the submission of a new report, meaning the PSI and NHIF budgets can still be amended even though they were already adopted at second reading by the Committee. He added that he was surprised to find many more points of agreement between the government and the social partners than expected. According to him, if consensus is reached next week on the proposed measures, there is enough time before the end of the year for Parliament to adopt the 2026 State Budget Bill.

The next meeting of the National Council for Tripartite Cooperation is scheduled for Tuesday, December 2.

Kiril Domuschiev, Chair of the Confederation of Employers and Industrialists of Bulgaria, voiced satisfaction with the National Council for Tripartite Cooperation meetings held on Thursday and Friday. “I believe there are truly many points of agreement, and I hope that next week employers, unions, and representatives of the governing coalition will come together to implement changes that allow workers and companies to preserve their incomes and competitiveness, without harming public-sector employees or the interests of trade unions. I believe this is entirely possible,” Domuschiev said.

Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria, said that a possible compromise on the budget is being sought so that income increases can be realized while keeping businesses satisfied. He distinguished union protests from demonstrations against tax hikes, emphasizing that it is natural for someone earning BGN 1,400 to protest.

Dimitar Manolov, President of the Podkrepa Confederation of Labour, added that efforts were also made to strengthen the sustainability of the social security system through other mechanisms, either alongside or separate from adjustments to social contributions. Some results have been achieved, though further calculations by experts are still pending. Manolov also said there was agreement that certain sectors of the administration have unacceptably low wages and require action. Salaries in sectors such as agriculture, forestry, and others will be reviewed for potential adjustments. Discussions also covered payments tied to the minimum or average wage.

Dobri Mitrev, Chair of the Bulgarian Industrial Association, said that no agreement has yet been reached with unions on the size of the dividend tax. He emphasized that the increase of this tax, together with the rising social security burden, is the biggest concern for Bulgarian businesses. Mitrev added that the BIA will insist that any increase in the dividend tax be offset by other measures.

On Wednesday evening, people flooded streets in central Sofia at the square known as the “Power Triangle”, where the new National Assembly building is flanked by the President’s administration building and the Council of Ministers on Wednesday evening, to protest the adoption of the 2026 budget bills. The protest lasted more than six hours and ended after midnight. The gathered citizens formed a human chain around the National Assembly building and booed the MPs as they left the building. The demonstrators chanted "Mafia". "The budget has a hole in it, we do not want bankruptcy", "No consensus? No second reading", "You are using our money to make trouble", "I want a future in Bulgaria", "We are fed up! We want to live normally" some of the posters carried by protesters said.