Bulgaria's Political Turmoil and the Road to Eurozone

Bulgaria faces political instability as its government collapses amidst anti-corruption protests. President Rumen Radev will hold consultations to form a new cabinet. Political fragmentation looms with upcoming elections. A pro-Russian party seeks to delay eurozone entry. Radev may launch a new political party. Inflation fears impact euro support.

Bulgaria is on the brink of political upheaval following the collapse of its government due to nationwide anti-corruption protests. Next week, President Rumen Radev will begin consultations with parliamentary groups to attempt to form a new cabinet. The collapse of Rosen Zhelyazkov's minority government marks the end after surviving six no-confidence votes since January.

Amidst this backdrop, political analysts predict another election, the eighth since 2021, could result in a fragmented parliament, adding to the instability as Bulgaria gears up to join the eurozone on January 1. Concerns over inflation, allegedly fueled by disinformation from Moscow, have dampened enthusiasm for adopting the euro.

In a bid to delay eurozone entry, the pro-Russian Vazrazhdane party has proposed postponing it for a year, blaming political uncertainties and the lack of a new budget. However, the chances of this resolution passing seem slim, though it mirrors the growing tensions in Bulgaria's political landscape ahead of potential changes in its pro-Western alignment.

(With inputs from agencies.)