Bulgaria’s government has withdrawn its controversial 2026 budget proposal after nationwide protests against planned tax hikes and higher social security contributions.

The backlash comes amid years of political instability and deep public divisions over eurozone adoption and corruption.

Tens of thousands of mostly young protesters in Sofia accused the government of perpetuating corrupt institutions and demanded either a revised budget or the cabinet’s resignation.

Some demonstrations turned violent, with clashes between protesters and police resulting in injuries and arrests, Al-Jazeera has reported.

The government says it will begin drafting a new budget once parliament formally confirms the withdrawal.