Bulgarian Constitutional Court upholds 2026 budget, strikes down specific provisions

The Bulgarian Constitutional Court has ruled to uphold the 2026 state budget, rejecting challenges to its constitutionality. The court determined that exceeding the 3% GDP deficit threshold, while a violation of national legislation and EU fiscal rules, does not automatically render the entire budget unconstitutional.

However, the court struck down several specific provisions included within the budget law. These include changes to the Labor Code that would have calculated seniority proportionally based on hours worked, a move that would have significantly impacted employees on four-hour contracts. Additionally, the court invalidated a mechanism intended to link the salaries of judges, prosecutors, and investigators to 60% of a Member of Parliament's monthly salary, ruling that such permanent changes to judicial compensation cannot be implemented through an annual budget law.

The ruling follows legal challenges from members of the 52nd National Assembly and the Ombudsman. Political figures, including former Finance Minister Temenuzhka Petkova, have criticized the decision, arguing that the budget violates public finance laws and expressing concerns over the potential for future governments to manipulate budget deficits.