Bulgaria Enters the Eurozone, Marking a Historic Shift in Its EU Integration

Bulgaria officially adopted the euro on New Year’s Day, becoming the 21st member of the eurozone and taking a decisive step in its nearly two‑decade journey toward deeper European integration. The move brings the number of Europeans using the single currency to more than 350 million, according to the European Central Bank (ECB).

The transition, long anticipated but politically contentious, comes 19 years after Bulgaria joined the European Union in 2007. The euro’s introduction follows the European Commission’s 2025 confirmation that Bulgaria met all convergence criteria required for accession.

A Dual‑Currency Transition Period

Under the government’s transition plan, the Bulgarian lev will continue to circulate alongside the euro throughout January. From February 1, the euro becomes the country’s sole legal tender.

Key transition measures include:

• Cash payments accepted in both lev and euro during January, with retailers required to give change in a single currency—preferably euros.
• Free currency exchanges at banks and post offices until June 30, after which nominal fees may apply.
• Dual price displays are mandated until August 8, 2026, to ensure transparency and prevent unjustified price increases.
• ATMs are dispensing only euros after technical adjustments were completed early on January 1.

The official conversion rate is fixed at 1.95583 lev per euro, a parity maintained for years under Bulgaria’s currency board arrangement.

A Symbolic and Strategic Milestone

ECB President Christine Lagarde welcomed Bulgaria to what she called the “euro family,” describing the currency as “a powerful symbol of what Europe can achieve when we work together” amid global geopolitical uncertainty.

The ECB marked the occasion by illuminating its Frankfurt headquarters to celebrate the integration of Bulgaria’s central bank into the Eurosystem. The Bulgarian National Bank now holds a seat on the ECB Governing Council and becomes a full participant in the Single Supervisory Mechanism overseeing European banks.

Former Bulgarian leaders have framed the euro adoption as both an economic and geopolitical signal, reinforcing Bulgaria’s alignment with Western institutions at a time of heightened regional tensions.

Public Opinion Split and Political Tensions

Despite the historic nature of the shift, public sentiment in Bulgaria remains divided. Recent surveys show nearly half of Bulgarians opposed the transition, citing fears of inflation, loss of national identity, and insufficient public consultation.

President Rumen Radev acknowledged the significance of the moment but criticized the lack of a referendum, calling it “a dramatic symptom of the deep divide between the political class and the people” during his New Year’s address.

The country has faced political instability in recent years, holding seven parliamentary elections since 2021. Protests over the 2026 budget and corruption allegations led to the resignation of Prime Minister Rosen Zhelyazkov in December, adding further tension to the transition period.

Economic Expectations and Retail Readiness

Retailers and financial institutions have spent months preparing for the currency shift. Large chains and small shops alike have updated payment systems, while banks warned of potential short‑term disruptions to card payments and ATM withdrawals during the initial hours of the transition.

Officials, however, expressed confidence that the euro will stabilize markets and reduce transaction costs for businesses and consumers. Analysts expect 2025 to serve as a year of market stabilization ahead of a smoother 2026 under the new currency regime.

A New Chapter for Bulgaria in the European Project

With Bulgaria’s accession, only six EU member states—Sweden, Poland, the Czech Republic, Hungary, Romania, and Denmark—remain outside the eurozone.

For supporters, the euro represents economic security, easier trade, and deeper integration with Europe’s wealthiest economies. For critics, it raises concerns about inflation and the erosion of national sovereignty.

But for Bulgaria, the adoption of the euro marks a definitive step in its European journey—one that reshapes its financial landscape and cements its place within the core structures of the European Union.