From Political stalemate to Government of Compromise: A New Path to Stability and Progress in Bulgaria

Since 2020, Bulgaria has struggled with short-lived governments after anti-corruption protests disrupted GERB’s long-standing coalition. Over the past four years, the country has experienced only two regular governments, neither of which managed to serve a full term, highlighting the challenges of political cohesion and effective governance. Nevertheless, since 27 October 2024, former Prime Minister Boyko Borisov's center-right “GERB” managed to find allies in the face of “Bulgarian Socialist Party – United Left” (BSP), "There Is Such People" (ITN), and secured the backing of “Alliance for Rights and Freedoms - Dogan” (MRF – Turkish minority party)’s founder Ahmed Dogan to form a coalition cabinet which was sworn into office on Thursday morning, 16 January 2025.

Pro-European, centrist-right coalition “We Continue the Change-Democratic Bulgaria” (WCC-DB), pro-russian “Vuzrazhdane” (Revival), Magnitsky sanctioned Delyan Peevski’s “Movement for Rights and Freedoms (MRF) – New Beginning” coalition and nationalist-populist party “MECH” all stand in opposition.

Events leading to 16 January 2025:

The October 27 elections marked a pivotal moment in Bulgaria's recent political landscape, concluding a prolonged period of instability. The results showed that GERB emerged as the leading party and after 3 months of negotiations, they fulfilled its government mandate, handed by President Rumen Radev on Wednesday, 15 January. Shortly thereafter on 16 January, Parliament proceeded with a vote to elect the new government, with Rosen Zhelyazkov assuming the role of Prime Minister. Parliamentary elections have been held 7 times in the last 4 years. During this period, GERB was given the mandate to form the government 8 times. During these attempts, Boyko Borissov's party returned a total of five mandates unfulfilled. On two occasions GERB proposed the composition of a government, but it failed to negotiate support in parliament. Thus, Zhelyazkov's cabinet is the first successfully fulfilled mandate to form a government.

The broad four party alliance garnered 125 votes in the National Assembly, forming the new Council of Ministers amidst unanimous opposition from other parties. During the debate in Parliament most MPs agreed that Bulgaria needs a regular government but expressed doubt that the proposed cabinet would be able to meet the goals it has set for itself.

Since winning the elections, GERB had changed its position several times on whether it will form a government. In December it decided to negotiate with Democratic Bulgaria (DB), BSP and ITN. "We Continue the Change" did not participate in the negotiations after GERB refused to sign a declaration to isolate Delyan Peevski from the government. He has been sanctioned for corruption by the US and the UK. DB had set several conditions for forming a government - isolating Peevski from power, a prime minister who is not a bright party figure, stopping the election of the current prosecutor general for a new term and changing the composition of the Supreme Judicial Council (SJC), whose term has long expired.

BSP's demand was to form a "programme" government with a non-partisan prime minister, while the ITN's was that Boyko Borissov should not be prime minister.

In early January, GERB broke off negotiations with DB over disagreements on the proposal for prime minister - Rosen Zhelyazkov. Negotiations with ITN and BSP continued, and on Monday 13 January ARF - Dogan announced that it would support the draft cabinet of BSP, ITN and GERB, without having any participation in it.

Government composition and priorities:

Rosen Zhelyazkov is known for his expertise in digital transformation and transport policies with extensive experience in public administration and governance. He was the first Chairman of the State Electronic Governance Agency from 2016 to 2018, served as Minister of Transport, Information Technology, and Communications from 2018 to 2021 and was Speaker of the 49th National Assembly from 2023 to 2024. A graduate of Sofia University with a law degree, Zhelyazkov has held various key positions, including Chief Secretary of the Council of Ministers.

The draft cabinet of Rosen Zhelyazkov includes well-known names from GERB. There are three deputy prime ministers, one each from GERB-UDF, Bulgarian Socialist Party – United Left and ITN, and 19 ministers, from the three coalition government partners. The ARF – Dogan loyalists do not have seats at the Cabinet table.

An agreement for the implementation of the governance program has been signed by all parties in the new coalition. The agreement states that no later than 30 days from the signature, the parties will have to prepare and sign a joint legislative program.

The new government has set an ambitious agenda aimed at addressing Bulgaria’s most pressing challenges and securing its strategic goals. Prior to the vote in Parliament, in his opening speech to the MPs, new PM Rosen Zhelyazkov stated that the quality of life of the people will be his main priority, with a focus on education, healthcare and the development of the labour market. In addition we can highlight the main policy priorities outlined in the governance program:

Advancing Eurozone Integration: Building on Bulgaria’s readiness to meet euro adoption criteria, the government seeks to bolster economic stability and growth by accelerating this process.

• Eradicating Money Laundering Risks: By removing Bulgaria from the EU's grey list, the government aims to restore financial integrity, strengthen international trust, and attract investment.
• Fast-Tracking the National Recovery and Resilience Plan: Prioritizing the timely execution of this plan ensures Bulgaria can access vital EU funds and advance key structural reforms.
• Boosting Investment in Scientific Research: Committing to allocate 2% of GDP to innovation underscores the government’s focus on long-term economic competitiveness and technological advancement.
• Strengthening Energy Security: Diversifying energy sources and promoting sustainability are central to reducing Bulgaria’s reliance on external suppliers and enhancing national resilience.
• Modernising National Defence and Security: Plans include modernizsng the armed forces, enhancing NATO integration, building robust cybersecurity systems, and countering foreign interference to ensure comprehensive national security.
• Promoting European Peace and Security: The government reaffirms Bulgaria’s commitment to Europe’s peace framework and solidarity with Ukraine, reflecting a strong alignment with EU and NATO policies.

Rud Pedersen Public Affairs Bulgaria Analysis:
The newly elected government marks Bulgaria's first regular administration since April 2023, signaling a critical step toward political stability after years of turbulence. This “Government of Compromise” unites ideologically diverse parties—GERB-UFD, BSP, ITN, and the ARF-Dogan— under a shared recognition of the need for effective governance. While their ideological differences will pose challenges, the successful formation of the coalition demonstrates a mutual understanding of the high stakes for all parties involved.

The coalition's ideological diversity makes it vulnerable to internal tensions, especially on contentious policy issues. However, the decision to govern together reflects a calculated effort to avoid further instability, as all parties have much to lose in the event of a government collapse. With this shared incentive, the coalition has the potential to establish itself as a stable and productive administration.

A distinguishing feature of this government is the presence of a genuine opposition. Unlike previous parliaments, where opposition parties often collaborated with those in power, this administration is likely to face more structured and substantive scrutiny, which could enhance accountability and public trust.

This government represents a delicate yet promising balance between compromise and ambition. Its success will depend on the coalition’s ability to manage internal disagreements, deliver on its priorities, and effectively navigate opposition scrutiny.

Key priorities for the coalition, which are likely to impact business, include advancing Eurozone integration, speeding up the uptake of EU funds for the country’s infrastructure—particularly through the National Recovery and Resilience Plan (€6.27 billion in grants, of which Bulgaria has so far received €1.37 billion)—and, last but not least, strengthening the rule of law.

Annex 1: Composition of Parliament following 27 October 2024 election results