Bulgaria set to adopt the euro – why is this causing controversy?

Bulgaria volition go the 21st subordinate of the eurozone – oregon Schengen monetary country – connected Thursday, contempt heavy scepticism from immoderate successful the state amid fears of inflation.

The Southeast European state has been a subordinate of the European Union since 2007, but formally met the eurozone’s introduction criteria lone successful January 2025, paving the mode for its currency ascension aft a agelong delay.

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The determination volition summation the fig of Europeans utilizing the euro to 356 cardinal people, and geographically widen the azygous currency into the Black Sea country for the archetypal time, contempt ongoing geopolitical tensions.

However, determination is interest among immoderate Bulgarians that adopting the euro could bring connected an economical situation successful a state considered the poorest successful the EU.

There is wide mistrust successful the government. Earlier this December, the number pro-EU conjugation starring the state was compelled to resign aft wide protests erupted against a projected fund program that sought to present higher taxes. Despite the program being withdrawn, the protests grew to encompass demands for broader governmental change.

Here’s what we cognize astir wherefore the determination to follow the euro successful Bulgaria has go truthful controversial:

Protesters clasp placards depicting Bulgarian person Delyan Peevski, accused of corruption, during an antigovernment protestation successful Sofia connected December 1, 2025. Tens of thousands of radical protested connected December 29, widening an anticorruption question sweeping the state arsenic it prepares to follow the euro [Nikolay Doychinov/AFP]

What’s happening?

Bulgaria, a state of 6.7 cardinal people, joined the EU successful 2007 and has since been pushing to articulation the eurozone.

However, governmental instability has slowed the advancement of reforms required for the state to beryllium accepted into the zone, arsenic authorities aft authorities has grappled with allegations of corruption.

Under the 1992 Maastricht Treaty, EU subordinate states indispensable conscionable 5 criteria earlier they tin articulation the eurozone. These acceptable fixed targets for inflation, fund deficit, debt-to-GDP (gross home product) ratio, speech complaint stableness and semipermanent involvement rates. Monetary argumentation is centrally controlled by the European Central Bank (ECB).

The EU yet greenlit Bulgaria’s ambitions successful January 2025, aft determining that it had present met the economical and legislative criteria to articulation the eurozone. In June and July, EU institutions – the European Council, the Financial Affairs Council, some successful Brussels, and the European Parliament successful Strasbourg – gave their support for the accession.

How does joining the eurozone work?

The EU has acceptable a conversion complaint of 1 euro to 1.95583 Bulgarian lev (BGN) nether the European Exchange Rate Mechanism, which Bulgaria joined successful 2020 arsenic a information for adopting the euro. The determination formally pegged the lev to the euro. However, the lev had informally already been pegged to the euro since 1999 erstwhile Germany switched to the currency. This is due to the fact that Bulgaria had tied its currency to the German people successful 1997 successful a bid to stabilise its system and rein successful soaring inflation. Therefore, galore analysts say, the ceremonial adoption of the azygous currency whitethorn not bring arsenic large a alteration arsenic immoderate fear.

Furthermore, portion Bulgarian businesses volition present beryllium capable to entree the azygous euro marketplace without further speech risks, researchers from the National Bank of Belgium estimation that much than 80 percent of Bulgarian imports person been denominated successful euros since 1999.

Since it joined the speech complaint mechanics successful 2020, Bulgaria has been taxable to ECB policy. Now, it volition person a spot astatine the bank’s governing council, giving the state a accidental connected standing policy.

There volition beryllium a transitional process for businesses and consumers. Prices successful stores volition beryllium displayed successful some leva and euros until August 2026, and the lev volition proceed to beryllium accepted until January 31.

For six months, Bulgarians volition beryllium capable to speech leva successful currency for euros astatine immoderate commercialized bank, station office, oregon the Bulgarian National Bank. Once aged currencies person been collected backmost in, they are typically shredded and recycled.

Why are immoderate Bulgarians sceptical astir joining the eurozone?

Bulgarians are reasonably evenly divided connected the contented of joining the eurozone. Surveys conducted by the Bulgarian steadfast Alpha Research showed that successful May 2025, 46.5 percent supported adopting the euro, portion 46.8 percent opposed it. According to pollsters, astir of those against the determination were residents of smaller towns and villages, often pensioners oregon semi-educated working-age individuals progressive connected societal media.

The main fears driving absorption to the euro are that the alteration volition propulsion up prices, impact buying power, and trim wages, according to the survey.

Experiences successful different countries person shown that “whenever determination is simply a changeover from nationalist currency to the euro, determination is often a insignificant ostentation effect, but it’s typically little than 1 percent”, expert Zsolt Darvas of Brussels-based deliberation vessel Bruegel told The Associated Press quality agency.

Speaking successful the superior city, Sofia, successful November, ECB President Christine Lagarde said switching to the euro would present “smoother trade, little financing costs and much unchangeable prices”. She added that adopting the euro would person a “modest” ostentation interaction of 0.2 to 0.4 percent.

But galore Bulgarians besides fearfulness the determination volition pb to a nonaccomplishment of Bulgarian identity, arsenic salient figures are presently featured connected lev banknotes. Ivan Milev, for example, whose representation is displayed connected the 5 lev note, was a salient aboriginal twentieth-century creator who helped signifier Bulgarian modernism.

Bulgaria has endured 7 parliamentary elections successful the past 4 years, and galore voters are acrophobic astir the governmental establishment’s quality to grip the change.

The ruling coalition, which was forced to measurement down successful December aft it projected higher taxes, was itself divided connected the issue.

It was a fragile conjugation of ideologically opposed groups, including the centre-right and pro-Europe Citizens for European Development of Bulgaria (GERB) party, the pro-Russian, post-communist Bulgarian Socialist Party-United Left (BSP-OL) and the conservative-nationalist There is Such a People (ITN).

President Rumen Radev, who is backed by the BSP-OL and ITN, called for a referendum connected the contented successful June, citing the country’s deficiency of readiness and prompting heated debates successful parliament. Lawmakers rejected the move, however.

Political absorption groups, peculiarly pro-Russian parties which are ideologically opposed to further integration with the EU, reason that adopting the euro volition impact Bulgaria’s fiscal sovereignty and marque it excessively babelike connected Brussels.

“Someone other volition determine however we walk our money, the Bulgarian fund volition beryllium approved by the European Central Bank,” Kostadin Kostadinov, person of the pro-Russian Vazrazhdane party, told protesters calling for a referendum connected the currency contented successful June. “This is an antistate coup, this is treason,” helium added.

Kostadinov and different far-right politicians person besides been accused of spreading mendacious claims that the savings of communal Bulgarians volition vanish arsenic a effect of the change, portion online Russian networks are alleged to person amplified akin narratives, according to Euronews reports.

“I americium against it, archetypal due to the fact that the lev is our nationalist currency,” Emil Ivanov, a pensioner successful Sofia, told the Reuters quality agency. “Secondly, Europe is heading towards demise, which adjacent the American president mentioned successful the caller national information strategy.

“I whitethorn not beryllium live erstwhile this [the EU’s demise] happens, but that is wherever everything is going,” she added.

Euroscepticism is rising crossed the continent arsenic a full arsenic far-right governmental parties summation much influence. Nearly one-third of European voters present enactment far-right parties, up from conscionable 3 percent successful the mid-2000s, according to the London-based Centre for Economic Policy Research (CEPR).

However, contempt the distrust, galore Bulgarians are blessed astir joining the eurozone, peculiarly businesses which commercialized crossed borders and those moving successful the tourism sector. Government billboards successful Sofia show the message: “Common past. Common future. Common currency.”

Are EU subordinate states required to follow the euro?

Yes, each 27 EU subordinate states are legally obliged to usage the euro, though determination is nary acceptable timeframe by which they indispensable follow the currency. Members person the close to postpone adoption and acceptable their ain timelines, and the EU releases its ain study each 2 years assessing members’ readiness to articulation the eurozone.

In January 2023, Croatia became the latest EU state to follow the euro, relinquishing its kuna astatine a complaint of 1 euro to 7.53 kuna (KN). It joined the EU successful 2013.

Six EU members are inactive not portion of the eurozone: Poland (which has the zloty), Denmark (krone), Hungary (forint), Romania (leu), Sweden (krona), and the Czech Republic (koruna).

Most person chosen to clasp connected to their currencies to support independency from the ECB connected cardinal issues, specified arsenic maturation rates, handling inflation, oregon nationalist debt, and being capable to take to devalue their currencies. Only the Romanian authorities has acceptable a tentative deadline of 2027 oregon 2028 for joining the azygous currency.

Under the 1992 Edinburgh Agreement, Denmark was the lone subordinate to unafraid a peculiar opt-out woody with the EU aft Danish voters rejected the Maastricht Treaty successful a referendum, voting alternatively to support the krone. A 2nd referendum connected joining the eurozone successful 2000 yielded different “no” effect from 53.2 percent of voters.

The United Kingdom, which was a subordinate of the EU until 2020, secured an opt-out erstwhile the Maastricht Treaty was being negotiated successful 1992, and it ne'er adopted the euro.

At its instauration successful 1999, 1 euro was worthy astir $1.17, and it is presently $1.18. Against the pound, the euro was initially acceptable astatine astir 0.70 pounds, portion the existent complaint is astir 0.87 pounds.