The Euro on the Horizon for Bulgaria
EU Commission grants approval for Bulgaria's currency transition to the Euro
Brussels/Sofia — Bulgaria has the green light from the European Commission to adopt the common currency, the Euro. The Balkan nation has met all necessary criteria, with plans to phase out their national currency, the Lev, by January 1, 2026.
Bulgaria, an EU member since 2007, will join 20 other nations in the Eurozone, making it the 21st nation to use the Euro. Croatia was the most recent addition to the Eurozone in 2023.
Ursula von der Leyen, EU Commission President, believes the Euro signifies "European strength and unity." By adopting the Euro, the Bulgarian economy is expected to strengthen, with increased trade with Eurozone partners, greater foreign investments, access to financial markets, and improved job opportunities, leading to higher real incomes. Protests against the Euro adoption, however, have occurred across Bulgaria.
Postponed Introductions
Bulgaria is among the EU's poorer nations and, in 2024, ranks last in terms of GDP per capita, despite higher growth rates compared to other countries. Preliminary data from Eurostat shows that Bulgaria's per capita economic performance in 2023 was 34 percent below the EU average.
Adopting the Euro would facilitate trade and travel for Bulgarian businesses and tourists. As the Euro replaces the Lev, there would be no need for foreign currency exchange, making economic transactions smoother and reducing costs for tourists.
The initial plan for introducing the Euro in Bulgaria was for January 1, 2024, but was postponed due to a relatively high inflation rate of 9.5 percent. This delay was due to concerns over meeting the EU Commission's criterion for price stability.
All EU members, except Denmark, are obligated to join the Eurozone once they meet the requirements. Apart from Bulgaria, Euro adoption remains pending in Poland, Romania, Sweden, the Czech Republic, and Hungary.
Criteria for Euro Adoption
To adopt the Euro, countries must fulfill several key criteria. These include maintaining price stability, sound public finances, and a stable exchange rate. Inflation must be kept under control to preserve the value and purchasing power of money.
Euro adoption candidates must demonstrate control over public debt and maintain a stable national currency exchange rate, ensuring predictability for companies.
The European Central Bank (ECB) and the EU Commission evaluate the progress of Euro adoption candidates in terms of the so-called convergence criteria. Ultimately, the Council of the European Union makes the final decision on a nation's readiness for the Euro, based on a proposal from the EU Commission and input from the European Parliament.
The ECB's Assessment
The ECB's assessment affirms that Bulgaria is Euro-ready, having made significant progress since 2024 in meeting the economic requirements for joining the currency area. ECB Chief Economist Philip R. Lane states, "Bulgaria's positive convergence assessment paves the way for the country to adopt the Euro on January 1, 2026, and become the 21st EU member state to join the Eurozone."
However, the ECB emphasizes the need for far-reaching structural reforms to stabilize Bulgaria's economic situation. This includes efforts to combat corruption, ensure an independent and efficient judicial system, improve the education system, and modernize infrastructure to boost production potential.
Rise of Protests in Bulgaria
Opposition to the Euro in Bulgaria is strong and has led to protests in cities like Sofia. In February, nationalists attacked the EU representation in Sofia, setting fires, throwing Molotov cocktails, and defacing the building with red paint.
The pro-Russian nationalist opposition party, Vazrazhdane (Revival), alleges that the Bulgarian government is manipulating data to facilitate the introduction of the Euro. They argue that it would lead to the loss of national sovereignty.
The Call for a Referendum
Vazrazhdane leader Kostadin Kostadinov is advocating for a referendum on retaining the Bulgarian national currency, the Lev. Despite collecting over 600,000 signatures for a referendum, the Bulgarian Parliament rejected it twice—in 2023 and May 2025.
Polls indicate that the Bulgarian population is split on the issue, with 54.9 percent opposing the Euro in 2026, while 34.4 percent support its adoption in 2026. A survey by the Gallup International Balkan Institute in May showed that while 33.4 percent see advantages in adopting the Euro, 32.9 percent fear disadvantages.
Research suggests that the opposition to the Euro is influenced by factors such as fear of inflation, distrust in institutions, misinformation, nationalist sentiments, and populist politics.
- The implementation of the Euro in Bulgaria is expected to stimulate business activities, with increased trade within the Eurozone, leading to higher foreign investments, financial market access, and improved job opportunities – all factors aimed at boosting the nation's real income.
- Despite the promised economic benefits, the Euro's adoption in Bulgaria has been met with resistance from certain groups, particularly those worried about inflation, institutional mistrust, misinformation, nationalist sentiments, and concerns over loss of national sovereignty.
