In a country better known for political instability – seven elections in three years – the official invitation of Bulgaria to join the euro zone in January 2026 marks a major turning point.
For Dimitar Radev, celebrating a decade as governor of the Bulgarian National Bank, it is the culmination of years of economic discipline and reform.
“Adhesion opens up new sustainable growth and prosperity opportunities, and crowns years of constant efforts-macroeconomic convergence, institutional development and the development of responsible policies,” he told Global Finance. “For the economy, this means deeper financial integration, increased confidence in investors and greater resilience with external shocks. For the average citizen, the most immediate effects will be practical: elimination of exchange rate risk with our main business partners, lower transaction costs and more transparent prices. ”
From August, all retail prices will be indicated in Lev and euros to get used to the Bulgarians at the new currency. Banks and post offices will offer free conversion to the fixed rate of 51 ° C for each Lev. Fitch Ratings increased the sovereign note of Bulgaria to BBB + with a stable perspective after the announcement.
However, everyone in Bulgaria is not on board. A Eurobarometer survey of May only revealed 43% in favor of the adoption of the euro, with 50% opposite – many price hikes fearing a country in a country which collapsed by sticky inflation. Although the rate of 2.7% of April met the criteria of the ECB, a deep distrust of the government and the change persist. The older Bulgarians remember the 1996-1997 financial crisis which destroyed the economies and almost collapsed the economy, provoking the creation of a currency commission.
The owners of small stores seem to be the most concerned, saying that suppliers’ prices are already increasing, and many Bulgarians remember that the arrival of the euro in other countries has resulted in a sliding prices and standard of living.
Radev admits that it will not be a simple navigation. He promises that Bulgaria will “not do Greece” and will not give a wave of expenses fueled at interest rate. He expects he follows the more sober example of the Baltic States.
“The real risk lies in inner complacency: the erroneous belief that membership in the euro can substitute for good national policies.