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The Bulgarian Confederation of Employers and Industrialists (KRIB) has outlined six specific conditions under which it will support the government's proposed 2026 budget. These conditions were presented by KRIB President Kiril Domuschiev during a Facebook post, following discussions within the organization about whether to back the budget proposal in the National Council for Trilateral Cooperation (NSTC).

According to KRIB, the current year’s budget is already largely fulfilled, and the government faces a fait accompli regarding the first seven months of the year. Additionally, nearly all reforms aimed at reducing expenditures have been postponed until 2027. Despite these challenges, KRIB acknowledges that steps such as removing automatic salary increases and having employees pay their own insurance contributions are moving in the right direction.

The six conditions set forth by KRIB include ceasing the indexing of salaries in the public sector for those earning above the maximum insurance income threshold, while allowing indexing for those below this level. Specifically, salaries under €1,000 should be indexed with an additional 3 percent increase. This measure aims to address perceived inequalities highlighted by recent winter protests against unfair treatment in the public sector.

Another condition involves requiring the Prime Minister and the Minister of Finance to demand each ministry present three annual expenditure regimes that would pass on silent agreement. For every unsubmitted regime, the Minister of Finance would cut 10 percent of the respective ministry's budget.

KRIB also calls for the creation of a list containing at least two major assets for concession or privatization in the coming year. This follows concerns over high directorial salaries in state-owned enterprises burdened with debts and losses, some of which threaten the stability of entire systems. The confederation argues that when private businesses lose money, they fail, but when the state does, it receives more funds—an unsustainable situation that must end.

Furthermore, KRIB demands the removal of all automatic mechanisms through legal changes by the end of 2026 and prohibits the signing of collective labor agreements involving automatic mechanisms in the public sector since the funds come from taxpayers who are not parties to such agreements.

The confederation also urges the acceleration of the formation of the government's management program, ensuring that all measures not included in the pre-election program are presented in advance to social partners by the economic or financial vice-premier. A medium-term fiscal framework should be based on this program to instill confidence and stability.

Lastly, KRIB proposes a plan to reduce the number of employees in the public sector to reach two-thirds of the average for the Organization for Economic Co-operation and Development (OECD) by 2028. Given Bulgaria’s demographic crisis and its 35-year history of modern market economy, KRIB argues that it is unrealistic for future five-million-strong Bulgaria to have one worker supporting two civil servants, three pensioners, and one non-working person.

KRIB remains concerned about high inflation levels, emphasizing that any budget deficit in full employment conditions will further increase inflation, regardless of current trends in fuel, food, or services. Inflation can be reduced below 2 percent only through the implementation of a surplus budget, which should be prepared by 2028 at the latest.

An extraordinary session of the Trilateral Council is scheduled for today at 2 p.m., where the discussion will focus on the republican budget and so-called small budgets—those of the Health Fund and the State Social Insurance Agency. At the same time, trade unions KNSB and KT “Support” are expected to hold a protest outside the Government Building, opposing the proposed changes in the budget project for the current year, which they believe will lead to reduced personnel expenses and shifting the payment of insurance contributions onto state employees.

Trade unions insist on the repeal of the Law on Public Servants and related subordinate normative acts, ensuring that all workers in the administration have equal rights and responsibilities. They also demand the cancellation of planned reductions in budgetary funds for wages and freezing of incomes, as well as preventing layoffs in administrative structures without prior analysis of the status of each institution. They call for additional human resources to be allocated to the most burdened administrations.

The Ministry of Finance published the draft of the national budget for 2026 last week, projecting a deficit of 5.7 percent of gross domestic product (GDP). Measures for fiscal consolidation include freezing personnel expenses, with no anticipated increase tied to the rise in average or minimum wage, nor linked to collective labor contracts. It is expected that this budget will save over €560 million.

The draft also includes a review of the mechanism for determining the minimum wage, with a new model set to take effect in 2027. Until then, the minimum wage will remain at the 2026 level of €620.20.

The project also outlines a phased introduction of personal insurance contributions for public officials and those working under the Judicial Service Act. From August 1st of this year, the insurance burden will be distributed in an 80:20 ratio between the insurer and the insured, and from 2027 onwards, it will shift to a 60:40 ratio.