Bulgarian Prime Minister Rosen Zhelyazkov announced his resignation on Thursday, following weeks of mass protests over his handling of the economy and government corruption.

"Our coalition met, we discussed the current situation, the challenges we face and the decisions we must responsibly make," Zhelyazkov said.

"Our desire is to be at the level that society expects," he added. "Power stems from the voice of the people."

The announcement came minutes before parliament had been set to vote on a no-confidence motion in his government.

Thousands of protesters had been out again in Sofia and other cities on Wednesday night, even after Zhelyazkov withdrew his contentious 2026 budget.

Why have there been mass protests in Bulgaria?

Among other things, protesters were upset over planned hikes in taxes and social security contributions. Demonstrators have said this money would finance corruption, and that ordinary Bulgarians see little improvement in their daily lives.

Indeed, younger Bulgarians in particular have taken part in the rolling demonstrations, saying they see no way to plan a future in the country.

Even President Rumen Radev had called on the government to resign. In a statement on his official Facebook page, he wrote: "Between the voice of the people and the fear of the mafia. Listen to the public squares!"

Although Radev has limited political power, he must now call on Bulgaria's political parties in parliament to form a new government. In the likely event of them being unable to, he will appoint a caretaker government that will rule until elections can be held.

The country's political crisis comes just ahead of its planned entry into the eurozone on January 1. The controversial budget had been Bulgaria's first to be calculated in euros.

Edited by Sean Sinico