Bulgaria becomes the 21st country to adopt the euro as an official currency – National
On New Year’s Day, Bulgaria becomes the 21st country to join the euro currency union, furthering its integration with the European Union. But the milestone comes amid political instability and skepticism among ordinary people fueled by fears of rising prices.
Proponents of switching to the euro from the old currency, the lev, hail the move as one of the biggest achievements since the 1989 transition from a Soviet-style economy to democracy and free markets. They hope it will make the country more attractive to investors and strengthen its focus on wealthy Western Europe.
But many people are not free, in a country where corruption is rampant and trust in the authorities is low. Another fear is that retailers will raise prices or use the change to fuel the currency, at a time when inflation has rebounded to 3.7%.
An EU Eurobarometer survey from March showed that 53% of the 1,017 people interviewed were against joining the eurozone, while 45% were in favor. A separate Eurobarometer poll, taken between Oct. 9 and Nov. 3 in the same sample, showed that almost half of Bulgarians are against the single currency while 42% are in favor. The margin of error was about plus or minus 3.1 points for the March poll.
Some welcome the euro, others are wary
The government successfully completed the euro adoption process by reducing inflation to 2.7% earlier this year in order to comply with EU rules and get approval from EU leaders. But removing that hurdle was followed by a new chapter of political unrest. The government resigned after less than a year in power amid anti-corruption protests across the country. This has left the country without a regular budget for next year and is disrupting long-awaited structural reform plans and decisions on the use of EU support funds.
New elections – the eighth in five years – are expected to be held next spring.
Nevelin Petrov, 64, said he accepts the euro. “Bulgaria is a full member of the European Union, and its rightful place is with other developed and democratic European countries,” he said. “I am convinced that the adoption of the euro will contribute to the long-term prosperity of our country,” he said.
Others, like Darina Vitova, who runs a hair salon in Sofia, say things are moving too fast, although she welcomes “basically this change.”
Get the latest country news
For news that affects Canada and the world, sign up for breaking news alerts delivered directly to you as they happen.
“The quality of life and income in our country is far from that of the richest European countries, while the prices here are rising and the life of the common man will be very difficult,” he said. He admits that when he goes to the beaches of neighboring Greece, it will be much easier to pay with the same “pocket money” that he uses at home.
Bulgaria, with its 6.4 million people, is one of the poorest members of the 27-nation European Union. The average monthly salary is 1,300 euros ($1,530).
Countries joining the EU commit to the euro, but actually joining could take years and some members are in no rush. Poland in particular has seen strong economic growth since joining the EU in 2004 without adopting the euro.
Pro-Russian politicians have encouraged discontent
Opponents of joining fear that these changes will lead to more poverty and a loss of national identity. Social media has spread misinformation such as false claims that the euro could lead to the confiscation of bank accounts. Nationalist and pro-Russian groups are taking advantage of this fear.
European Central Bank President Christine Lagarde said countries had a small, temporary rise in prices of 0.2%-0.4% shortly after joining. Price increases may be more visible than real, as cafes and hairdressers may stop printing new menus and price lists before the change, so that the increase is only delayed, which may be caused by the euro.
Anti-euro rallies in May and September were organized by the pro-Russian group Vazrazhdane but remained smaller than the larger protests that overthrew the government. While the anti-euro protests were supported by older people based on economic concerns, the mass protests that overthrew the government appear to represent young voters fed up with corruption and eager to integrate with Europe.
The analyst says the adoption of the euro is a strategic move
Anti-euro disinformation spread by pro-Russian politicians and the media aims “to reduce support for the European Union, NATO and Ukraine,” said Dimitar Keranov, coordinator of the Central Europe engagement program at the German Marshall Fund in Berlin.
Bulgaria’s European integration “is not in Moscow’s interest at all, so if it can somehow divide society and reduce support for the European Union that is what it is trying to achieve,” he said.
The adoption of the Euro is another way to combat Russian influence, he said: “As Bulgaria advances in its European integration, it becomes more and more difficult for Russia to influence the country.”
Petar Ganev, an analyst at the Sofia-based Institute for Market Economics, says that the resignation of the outgoing government has sent a signal of uncertainty to foreign investors.
“Instead of using the adoption of the euro as a strong and positive sign for the international community – investors, credit holders, and those investing in Bulgarian goods and economic activities – we risk sending a different message,” said Ganev in an interview with the Associated Press.
Ganev believes that eurozone membership should be considered an opportunity, an additional way to deal with corruption and the rule of law, although alone it will not solve the endless cycle of Bulgarian elections and political divisions and instability.
The economic impact may be minimal
Local economists think that joining the euro will not bring dramatic changes to the Bulgarian economy. That is because the lev has been pegged since 1999 to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.
The lev and the euro will be used twice for cash payments throughout the month of January, but people will only receive euros.
McHugh reported from Frankfurt, Germany. Valentina Petrova in Sofia contributed to this report
© 2025 The Canadian Press
