Bulgaria Embraces Euro Despite Political Turmoil and Public Doubts

Bulgaria adopted the euro, becoming the 21st member of the eurozone nearly two decades after joining the European Union in 2007. Citizens in Sofia began accessing euros from ATMs, marking the start of a dual-currency period where both the lev and euro are accepted, although only euros are provided as change during this transition.

The decision to adopt the euro stems from Bulgaria’s intention to deepen EU integration and stabilize its economy. The lev had been pegged to the euro at a fixed rate since 1999, positioning Bulgaria as a de facto eurozone member. By officially adopting the euro, Bulgaria aims to eliminate currency exchange costs and gain representation in the European Central Bank’s governing council.

However, public skepticism looms over this transition, with about half of Bulgarians opposing the change due to fears of rising prices and loss of national identity. Nationalist and pro-Russian factions have capitalized on these concerns, suggesting that euro adoption may exacerbate poverty and compromise sovereignty.

The euro adoption has coincided with political instability, as the conservative-led government resigned following widespread anti-corruption protests, leaving Bulgaria without a regular budget for the upcoming year. This lack of a stable government raises concerns about implementing crucial economic reforms and utilizing EU support funds effectively.

Economists expect minimal disruption given the long-standing peg between the lev and euro, but the absence of a stable government and budget may impede Bulgaria’s economic progress and its capacity to leverage EU membership benefits. As Bulgaria enters this new phase, its success in euro adoption hinges on addressing public concerns, achieving political stability, and executing economic reforms effectively.