Bulgaria government resigns amid mass protests

Thursday, December 11, 2025 at 12:45 UTC+01:00 (+0100), Bulgaria, Sofia

News category : Geopolitical Events

On December 11, 2025, Bulgaria’s Prime Minister Rosen Zhelyazkov announced the resignation of his minority government following extensive street protests over perceived corruption and unpopular economic policy proposals. The resignation came minutes before parliament was set to vote on a no-confidence motion, a sign that sustained civic pressure had eroded political support despite earlier concessions by the government, including the withdrawal of its controversial 2026 budget draft. Demonstrations drew tens of thousands of participants across Sofia and other major cities, focusing on broader grievances about governance, corruption, and economic direction. The timing of the government’s departure is significant, as Bulgaria is scheduled to join the eurozone on January 1, 2026; market watchers and EU policymakers are closely monitoring whether political instability could influence the currency transition or investor confidence in Bulgarian bonds. President Rumen Radev will now seek to form a new administration or appoint a caretaker government if coalition talks fail, potentially leading to fresh elections in 2026.

Overall market impact

Strong neutral market impact - strength score : 80/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

EUR/FX markets

Eurozone sovereign debt

Balkan stock indices

Credit risk spreads

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