Bulgaria withdraws 2026 budget proposal following street protests

SOFIA, Bulgaria (AP) — Bulgaria’s government announced Thursday that it is withdrawing its 2026 draft budget, following street protests at home over steep tax increases included in the budget, and warnings from abroad.

The surprise move was announced by the leader of the ruling center-right GERB party, Boyko Borissov, who asked the government to restore dialogue with employers and labor unions to reach consensus on the state finances. The turmoil surrounding the budget comes as the Balkan country prepares to join the euro currency union next year.

The protests have reflected widespread concern over the budget’s economic impact on individuals and businesses. The disputed budget included increases in social security contributions and the doubling of the dividend tax.

Prime Minister Rosen Zhelyazkov said that the budget, which had already been approved on a first reading in parliament, will be revised after talks with social partners and opposition parties to iron out its “defects."

“The new budget package should keep things balanced and match the goals of the parties in the government coalition. This will make sure that Bulgaria can join the euro zone on January 1 without any problems,” he said.

Opposition and business groups have warned that higher taxes, increased social security contributions and planned expenditure increases foreseen in the budget could restrain investment and expand the shadow economy.

Earlier this week, the European Commission warned that Bulgaria’s draft budget risked breaking the EU's recommended cap on net expenditure growth, while the International Monetary Fund urged the Balkan country to pursue a tighter fiscal policy.

People have taken to the streets to protest the budget, with the largest protest on Wednesday night. Thousands gathered in front of the parliament to denounce government plans to increase the state pension insurance contribution by 2 percentage points and double the tax on dividends to 10%.

Protesters also demanded full transparency in public spending and criticized record-high government spending of some 46% of GDP planned for next year. Organizers estimated that more than 20,000 people joined the protest.

Opponents of the budget argued that the plan to increase spending would have been financed primarily through higher taxes on businesses and workers, as well as a sharp rise in public debt. They argued this would spur inflation without improving the efficiency of public services.

Protesters whistle and wave Bulgarian flags as thousands took to the streets of Bulgaria's capital, Sofia, to denounce steep tax hikes in next year's draft budget before being finally voted on in parliament, Wednesday, Nov 26, 2025. (AP Photo/Valentina Petrova)

Protesters scuffle with police as thousands took to the streets of Bulgaria's capital, Sofia, to denounce steep tax hikes in next year's draft budget before being finally voted on in parliament, Wednesday, Nov 26, 2025. (AP Photo/Valentina Petrova)

A young protester shouts anti-government slogans as thousands took to the streets of Bulgaria's capital, Sofia, to denounce steep tax hikes in next year's draft budget before being finally voted on in parliament, Wednesday, Nov 26, 2025. (AP Photo/Valentina Petrova)

Protester stands on top of a police vehicle as thousands took the streets of Bulgaria's capital, Sofia, to denounce steep tax hikes in next year's draft budget before being finally voted on in parliament, Wednesday, Nov 26, 2025. (AP Photo/Valentina Petrova)

ANN ARBOR, Mich. (AP) — Michigan point guard Elliot Cadeau received medical attention for a possible allergic reaction while his teammates were flying to Indianapolis for the Final Four.

Detroit radio station WWJ 950 posted a video on X on Wednesday showing a covered individual being wheeled out of Michigan's player development center on a gurney and loaded into an ambulance.

Michigan later confirmed it was Cadeau, who complained of a possible allergic reaction.

“Elliot alerted the medical staff that he may have had an allergic reaction to something that he ate," the team said in a statement. “The doctors evaluated Elliot and he is fine. Out of an abundance of caution, he is receiving medical supervision and will be traveling to Indianapolis later today.”

The school said Cadeau will meet the team in Indianapolis, where Michigan is set to take on Arizona on Saturday night in a Final Four clash between No. 1 seeds.

The Wolverines are chasing their first national title since 1989 and second in program history.

Michigan’s backcourt took a hit late in the regular season when key reserve LJ Cason had a knee injury, forcing coach Dusty May to lean on Roddy Gayle and Trey McKenney to play more.

Cadeau averages 10.2 points, a team-high 5.8 assists, 2.7 rebounds and 27 minutes a game. He earned All-Big Ten honorable mention while helping the Wolverines win the conference championship.

Directing a high-scoring offense, Cadeau has at least seven assists in each of Michigan’s four games in the NCAA Tournament. He had 17 points and 10 assists in the win over Tennessee that lifted the team to the Final Four.

The 6-foot-5 Cadeau, who is from New Jersey, is in his first season with the Wolverines after transferring from North Carolina. He started in 68 games over the previous two years for the Tar Heels. He has not missed a game in three seasons, playing in 112 straight games.

AP March Madness bracket: https://apnews.com/hub/ncaa-mens-bracket and coverage: https://apnews.com/hub/march-madness

Michigan's Elliot Cadeau celebrates after making a 3-point basket during the second half in the Sweet 16 of the NCAA college basketball tournament against Alabama, Friday, March 27, 2026, in Chicago. (AP Photo/Nam Y. Huh)