Bulgaria's Grand Coalition Government Enters Office
Implications of the Denkov Government for Investors

June 7, 2023
Bulgaria’s parliament has voted the country’s new government into office. Led by former Education Minister Nikolay Denkov, the new government is the result of a surprise coalition agreement between the two largest political formations of the country – the centre-right GERB-SDS party of ex-PM Boyko Borissov and its former rival, the centrist We Continue the Change-Democratic Bulgaria (PP-DB) alliance.

Under its legislative program, the Denkov Government will aim to implement sweeping constitutional and judicial reform, ensure the flow of EU recovery funds, as well as to support the country’s aspirations to join the Euro and the Schengen Zone. Despite their numerous disagreements, the informal alliance of the two largest political blocs also means a pro-Western majority in parliament.

The formation of the Denkov Cabinet is seen as a major step towards resolving the country’s longrunning political crisis, after a series of inconclusive parliamentary elections since April 2021. However, political stability will remain one of the key issues to monitor, given Bulgaria’s highly fragmented parliament and history of short-lived governments.

Below, Aretera provides further insight into the formation of the country’s new government.
If you would like to schedule a discussion of this paper, please contact:
Lilyana Zagorcheva, Regional Director for Bulgaria & the Balkans at l.zagorcheva@areterapa.com