Key Takeaways:
- Bulgaria officially adopts the euro on Thursday, becoming the 21st member of the eurozone.
- The move is deeply controversial, occurring against a backdrop of mass protests, a recent government collapse, and widespread public distrust.
- Fears of inflation, loss of national identity, and ceding financial sovereignty to Brussels drive the opposition.
- A dual-display period for prices will last until August 2026, with the old lev accepted until the end of January.
Bulgaria's long-awaited entry into the eurozone is finally happening. Yet, the atmosphere in Sofia is far from celebratory. The country, the European Union's poorest member, is taking this historic step amid profound political instability and significant public scepticism.
The pro-EU coalition government was forced to resign in early December after mass protests erupted over a proposed budget. This political crisis has cast a long shadow over the currency switch, highlighting a deep rift between the political establishment and a populace worried about the economic and symbolic costs of abandoning the lev.
A Controversial Milestone
Bulgaria's journey to the euro has been protracted. An EU member since 2007, it only formally met the Maastricht Treaty criteria in January 2025. The final approvals from EU institutions followed in mid-2025, setting the stage for today's accession.
The move will bring the number of Europeans using the euro to 356 million and geographically extend the single currency to the Black Sea region for the first time. For proponents, it promises:
- Smoher trade within the EU single market.
- Lower financing costs for businesses and the state.
- Greater monetary stability.
However, for many Bulgarians, these promises are overshadowed by tangible fears.
The Roots of Public Distrust
Public opinion is almost evenly split. Recent polls show roughly 47% in favour and 47% against adoption. The opposition is particularly strong among pensioners and residents of smaller towns, with core concerns being:
- Price inflation: A widespread belief that the switch will automatically make everything more expensive.
- Loss of purchasing power and wages.
- Erosion of national identity, as iconic Bulgarian figures disappear from banknotes.
- Ceding financial sovereignty to the European Central Bank in Frankfurt.
Political figures, especially from pro-Russian and far-right parties like Vazrazhdane, have fueled these fears. They frame the adoption as "treason" and an "anti-state coup," arguing Brussels will now control the Bulgarian budget. Online disinformation campaigns, some allegedly amplified by Russian networks, have spread false claims about citizens' savings disappearing.
ECB President Christine Lagarde acknowledged a potential "modest" inflation impact of 0.2 to 0.4 percent, similar to the less-than-1% effect seen in other countries during their changeover.
The Practicalities of the Changeover
For businesses and consumers, the transition will be gradual. The official conversion rate is fixed at 1 euro = 1.95583 Bulgarian lev (BGN), a rate that has been effectively in place since the lev was pegged to the German mark in 1997.
- Prices in shops will be displayed in both leva and euros until August 2026.
- The lev will remain legal tender and can be used for cash payments until January 31.
- Bulgarians can exchange lev cash for euros free of charge at banks and post offices for six months.
Economically, the immediate shock may be limited. Over 80% of Bulgarian imports are already denominated in euros, and the country's monetary policy has been aligned with the ECB since it joined the pre-euro Exchange Rate Mechanism in 2020. The key change is that Bulgaria now gets a vote on the ECB's Governing Council.
The Bigger Picture: Eurozone Obligations
Bulgaria's entry reignites the debate about the euro's future expansion. All EU member states (except Denmark with its formal opt-out) are legally obliged to adopt the euro eventually, but there is no set deadline.
- Croatia was the last country to join, in January 2023.
- Six EU members remain outside: Poland, Denmark, Hungary, Romania, Sweden, and the Czech Republic.
- Most retain their own currencies to keep control over monetary tools like interest rates and devaluation. Only Romania has set a tentative target date (2027/2028).
Bulgaria's turbulent accession underscores that joining the eurozone is as much a political and psychological challenge as an economic one. Its success or failure will be closely watched in capitals from Bucharest to Warsaw, where similar debates about sovereignty, identity, and economic security are never far from the surface.