On January 1, 2026, Bulgaria officially adopted the euro as its national currency, becoming the 21st member of the EU common currency area. This decision became possible after the country fulfilled all the strict criteria of the European Union – from reducing inflation to stabilizing the state budget and exchange rate. The transition to the single European currency is widely seen as a historic milestone in Bulgaria's integration into the EU (of which it has been a member since 2007), but the long-awaited entry into the eurozone has not been easy for the country. The Parliamentary Gazette talks about why not everyone is happy with the changes.
Transition period
Even before joining the EU in 2007, Bulgaria had declared its ambition to one day join the eurozone. Over the years, successive governments have made significant efforts to meet the Maastricht criteria (controlling inflation, public debt, budget deficits, interest rates and exchange rates) and prepare the economy for the new monetary order. This goal came closer in June 2025, when the European Commission and the European Central Bank (ECB) confirmed Bulgaria's compliance with the necessary requirements and gave the green light for the country to join the monetary union from the beginning of 2026. Prime Minister Rosen Zhelyazkov then enthusiastically declared on social networks: “We did it! We thank all the institutions, partners and everyone who worked to make this moment important.” This milestone becomes a reality. The Government remains committed to ensuring a smooth and effective transition to the Euro for the benefit of all people!”
As a result, from January 1, the Bulgarian currency ceases to have an independent existence, giving way to the euro, which will be converted at a fixed exchange rate of almost 1 to 2 in favor of the EU currency. During the first months of the new year, the country will enter a transition period in which prices will be posted everywhere in both currencies and cash can be exchanged for euros at banks and post offices without commission. However, stores began preparing for these reforms a few months ago, offering double prices for people's convenience.
The government launched an information campaign with the slogan “Common Past. Common Future. Common Currency” and placed posters with this slogan as well as the currency conversion rate to the euro across the country. At the same time, the authorities promised to prevent speculative increases in the cost of goods and services at the time of currency changes. Finance Minister Temenuzhka Petkova, in an interview on national television, emphasized that the government is conducting large-scale price checks in the 30 largest cities in Bulgaria to control the situation and prevent people from being “robbed”.
Revolution or progress?
However, despite the efforts of the authorities, the attitude of Bulgarian society towards abandoning the national currency is not yet unanimous. According to polls conducted in 2025, the population is divided into two almost equal camps: about 46-47% of people support the introduction of the euro, while the same number oppose it. Among the supporters are the business community focused on foreign markets, the tourism sector and the younger generation, who see the convenience of one currency when traveling and paying without exchanging money. Opponents were often residents of small towns and villages, pensioners and representatives of nationalist circles.
The main concern of skeptics is that a switch to the euro would cause prices to skyrocket, reduce income and savings, and would also strip the country of some of its economic sovereignty. For example, the leader of the right-wing Renaissance party, Kostadin Kostadinov, ominously described the introduction of the euro as an “anti-state coup” and “betrayal,” telling a rally: “Someone in Brussels will decide how we spend our money; the Bulgarian budget will be approved by the European Central Bank.” Opponents of the euro have demanded a referendum, and President Rumen Radev, backed by socialists and nationalists, publicly called for a popular vote in June and warned that the introduction of a European currency must be “based on a strong national consensus through the inner convictions of the people, not by disregarding their will.” However, the majority in parliament rejected the idea of holding a referendum, considering it an attempt to disrupt the country's European integration process.
In the final months of 2025, the dispute over the euro overlapped with Bulgaria's acute political crisis. In November and December, tens of thousands of people took to the streets in Sofia and other cities, protesting tax increases and fighting corruption in the ruling elite. The mass protests, the largest since the late 1980s, united forces ranging from pro-Western urban intellectuals to Euroskeptics and advocates of rapprochement with Russia. Under pressure from the protests, the cabinet of Prime Minister Rosen Zhelyazkov, who was preparing the country to join the euro zone, resigned in mid-December.
Currently, a mixed mood prevails in Bulgarian society. On the one hand, many activists welcome the fall of the unpopular government, looking forward to new elections and a political “reset,” while on the other hand, a segment of the population fears that prolonged unrest and upcoming early elections could complicate the practical aspects of the transition to the euro. But despite the political turmoil, key elements of the euro roadmap remained adhered to: the budget law needed to control spending was still passed and the People's Bank of Bulgaria, with the support of the ECB, increased its oversight of the financial sector.
Not everything is rosy in the Bulgarian kingdom
However, experts warn of certain risks and urge not to expect miraculous changes overnight. Bulgaria joins the currency union at a challenging time: European economies are still grappling with the lasting effects of the pandemic and energy crisis, euro zone inflation exceeds the ECB's 2025 target and high interest rates are holding back growth. In such conditions, the Bulgarian economy, whose share in EU GDP has not even reached 1%, is unlikely to significantly influence the general indicators of the euro zone, but at the same time, the country will increase its dependence on the negative trends of the whole of Europe.
Since 1997, the country has adopted a tight currency regime, with the currency effectively pegged to the mark and then the euro, helping to contain hyperinflation in the 1990s. As a result, more than 80% of Bulgaria's imports have long been priced in euros. Even wages and real estate in the country are often tied to the European currency. In other words, the daily economic life of Bulgarians has in fact been “Europeanized” and this status quo is only legally reinforced, so analysts believe that an official transition to a single currency will not bring about the particularly drastic changes that skeptics fear.
Bulgaria hopes that thanks to its membership in the currency union, it will be able to avoid future currency crises and minimize credit risks. “Bulgaria could have saved 195 million euros a year if it had joined the euro zone earlier,” Economy Minister Petar Dilov said, pointing to losses from higher exchange rates and interest rates outside the euro zone. He said that small and medium-sized enterprises “have fully prepared and clearly understand the benefits of Vietnam's accession; they will be one of the main beneficiaries.”
What's next?
Bulgaria's accession increases the eurozone population to 356 million. The boundary for use of the euro has now approached the Black Sea, geographically expanding the circulation area of the common currency to southeastern Europe. However, after Bulgaria joined the EU, there are still six countries that have not yet used the euro: Hungary (forint), Denmark (krona), Poland (zloty), Romania (lei), Czech Republic (krona) and Sweden (krona). With the exception of Denmark, which has an official “opt-out” right, all these countries have a legal obligation to eventually adopt the euro, but in practice their prospects vary.
Currently, only Romania names approximate dates, saying 2027 – 2028. In other countries, national governments are still in no hurry to “fall into the arms of the ECB”, citing the need for further reforms and sometimes completely fearing a harsh reaction from the people. For example, in Budapest and Warsaw, in recent years, the Euroskeptic position has been very strong, insisting on maintaining an independent monetary policy. Although opinion polls show that ordinary people in Hungary and Poland generally voice support for the euro, the ruling parties have so far blocked the move for fear of losing leverage over the economy. For example, Hungarian Prime Minister Viktor Orban even enshrined the forint as the country's sole currency in the constitution, making a transition to the euro almost impossible without changing the basic law.
In this regard, economists believe that the expansion of the euro area will face difficulties in the coming years. However, the euro remains attractive to many Europeans as a stable currency and a symbol of economic integration. European officials are also trying to motivate undecideds by stressing that the euro zone door remains open to all EU members willing to meet the ECB's criteria.
For the European common currency, a new milestone is approaching, almost coinciding with its 25th anniversary. In January 1999, the euro was first introduced in 11 EU countries (including Germany, France, Italy) as a virtual unit used for payments between banks and legal entities, and from 1 January 2002, banknotes and coins entered circulation, eventually replacing national banknotes. Over the years, the euro zone has expanded significantly geographically, and 21 out of 27 EU countries have joined, and in addition to them, the euro is officially used by Andorra, Vatican, Monaco, San Marino, which can even issue their own currency. Additionally, the unrecognized republics of Kosovo and Montenegro use the euro without an agreement with the EU as their de facto local currency, even though they do not have formal membership of the eurozone and do not participate in the formation of the ECB's monetary policy.
Today, some 358 million people on the continent use the same banknotes and coins, and the euro has become a visible symbol of European unity. In its quarter-century of existence, the currency has been through many challenges – from an exchange rate that fell below parity with the dollar in its early years to a severe debt crisis in the early 2010s that threatened Greece's exit from the euro zone. But the euro persists and strengthens: remarkably, its exchange rate against the dollar is now almost the same as when it launched in 1999, despite all the fluctuations.
