Budget 2026 frozen, protests flare as talks heat up

The government pulled back its 2026 budget proposal after protests hit the streets, but officials say the process is just on pause until social partners and the state can hash out a deal. GERB's leader signaled he might give ground on dividend taxes and insurance caps, which employers have been pushing to drop alongside pension contribution hikes.

Unions want a 10 percent pay bump for underfunded state workers instead of the 5 percent originally floated. Another round of talks is coming up where everyone will try to find some middle-ground compromise that doesn't piss off either side completely.
 

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