Bulgaria's second-largest parliamentary grouping, the reformist PP-DB, declined a request on Wednesday from the president to try to form a new government, increasing the likelihood of a snap election in the European Union's poorest member state.

Prime Minister Rosen Zhelyazkov's coalition government, backed by GERB-SDS, resigned last month after weeks of street protests against a new budget that would have increased some taxes.

In line with the constitution, Bulgarian President Rumen Radev on Monday had formally asked the conservative GERB-SDS to form the government which they rejected. On Wednesday PP-DB, which seeks closer relations with the European Union, also rejected the mandate, BTA agency reported.

Radev is now expected to offer a chance to govern to another party and then if they refuse he will have to call a snap vote, Bulgaria's eighth in just four years.

Despite such uncertainty, Bulgaria joined the euro zone on January 1 as scheduled. But it needs political stability to speed the uptake of EU funds into its creaking infrastructure, encourage foreign investment and root out endemic state corruption.

The GERB-SDS coalition won the last election in October 2024 but only took power in January 2025 after months of talks and needed the support of other parties in the divided legislature.