The European Commission on Wednesday approved Bulgaria’s readiness to adopt the euro, saying the country was sufficiently ready to switch to the common currency.A commission report found that, after successfully reducing inflation, Bulgaria was in a position to become the 21st European Union country to use the euro.
When will Bulgaria adopt the euro?
Bulgaria, an EU member since 2007, had initially aimed to adopt the euro in 2024 but delayed the move due to an inflation rate of 9.5% at the time. The European Commission now expects Bulgarian inflation to ease to 3.6% this year and drop to 1.8% by 2026.The latest decision confirms that Bulgaria meets the necessary economic criteria to adopt the common currency on January 1, 2026.The European Central Bank (ECB) also assessed Bulgaria’s economy as sufficiently prepared. “The government in Sofia has shown tremendous commitment to implementing the necessary changes,” said ECB Chief Economist Philip Lane.
Why does Bulgaria want to be part of the euro?
Adopting the euro gives Bulgaria access to the European Central Bank’s monetary policy and financial backstops, reducing the risk of currency crises.It lowers interest rates on government and business loans and eliminates currency exchange risk with eurozone countries, boosting investor confidence.Using the euro simplifies cross-border transactions, making trade and tourism with other EU countries easier.“Congratulations, Bulgaria!” said European Commission President Ursula von der Leyen. “The euro is a tangible symbol of European strength and unity.”“Thanks to the euro, Bulgaria’s economy will become stronger, with more trade with euro area partners, foreign direct investment, access to finance, quality jobs and real incomes,” she said.Bulgarian Prime Minister Rossen Jeliazkov said the EU’s approval confirmed the progress made by the Balkan country.“A remarkable day. Another step forward on Bulgaria’s path to the euro… This follows years of reforms, commitment and alignment with our European partners,” he said in a post on X.
Is everybody happy about joining the eurozone?
The push to adopt the euro has sparked a significant backlash in Bulgaria. Protests have taken place in Sofia and other cities, and recent surveys indicate that nearly half of those polled oppose joining the eurozone.Some 1,000 people demonstrated Wednesday outside the National Assembly in central Sofia, protesting the planned change.Holding signs that read “Preserve the Bulgarian lev,” “No to the euro,” and “The future belongs to sovereign states,” the crowd voiced concern that joining the eurozone would erode national sovereignty and economic stability.Pro-Russian opposition party Vazrazhdane, which has led several similar rallies in recent months, organized the demonstration.“If Bulgaria joins the eurozone, it will be like boarding the Titanic,” said Nikolai Ivanov, a retired senior official, during another recent protest, reflecting fears that euro adoption could harm savings and dent the Bulgarian economy.
What is Bulgaria’s currency right now?
Bulgaria’s national currency, the lev, has served as the country’s official tender since 1881.The name “lev” translates to “lion” in old Bulgarian, reflecting a traditional symbol of national pride.The lev has undergone three major revaluations, most recently in 1999, when 1 new lev replaced 1,000 old leva. Since then, the lev has been pegged to the euro at a fixed exchange rate of 1.95583 BGN to 1 EUR under a currency board system. Fellow EU countries and the European Parliament must still approve Bulgaria’s accession to the eurozone, though approval is widely expected.Bulgaria’s path to joining the eurozone has been marked by political instability, with the country holding seven elections in just three years — the most recent in October 2024.Despite the turbulence, Bulgaria has made steady efforts to align its economy with eurozone standards. With a population of 6.4 million, it remains the European Union’s poorest member.Under EU treaties, all member states except Denmark are required to adopt the euro once they meet the necessary criteria. Bulgaria is one of six EU countries yet to do so, alongside Poland, Romania, Sweden, the Czech Republic, and Hungary.
