Bulgaria Joins the Euro, Becoming the 21st Eurozone Member

Bulgaria joins the euro, closing a 140-year chapter in its economic history and becoming the 21st country to adopt the single European currency. The move places the EU’s poorest member firmly inside the eurozone, leapfrogging wealthier states such as Poland, Hungary, and the Czech Republic.

The decision marks a symbolic and economic milestone for a country that has spent decades trying to anchor itself to the European mainstream. Yet while younger and urban Bulgarians welcome the change, deep anxiety remains among older and rural communities who fear rising prices, lost sovereignty, and political instability.

What Happened

On 1 January, Bulgaria formally replaced its national currency, the lev, with the euro. The transition follows years of preparation, legal reforms, and technical alignment with European Central Bank rules.

Throughout January, Bulgarians can pay using both currencies, although change must be returned in euros. From 1 February, the lev will no longer be accepted as legal tender.

Although the lev has existed since 1881, it has been tightly pegged to European currencies since 1997 — first the German Deutschmark and later the euro. For many economists, the latest step formalises an arrangement that already existed in practice.

Still, symbolism matters. The lion-named lev has long represented Bulgarian independence, and its disappearance has stirred emotions far beyond balance sheets.

Why Bulgaria Joins the Euro Now

Supporters argue that Bulgaria joins the euro at a critical moment for its economy and geopolitical standing.

Euro adoption completes a long journey that includes NATO membership, joining the European Union, and entry into the Schengen free-travel zone. Together, these steps anchor Bulgaria firmly within Western institutions at a time of global instability.

Younger Bulgarians, especially those in cities and the tech sector, see the euro as a gateway to easier trade, lower transaction costs, and stronger investor confidence. Many already think and spend in euros, particularly when buying property or cars.

The country’s large diaspora — around 1.2 million Bulgarians living abroad — has also sent remittances home in euros for years, making the transition feel overdue rather than abrupt.

Public Opinion Remains Deeply Divided

Despite government assurances, public opinion on euro adoption remains split almost evenly among Bulgaria’s 6.5 million people.

“I don’t want the euro, and I don’t like how it was imposed on us,” said Todor, a 50-year-old small business owner from Gabrovo. He believes a referendum would have rejected the currency change decisively.

President Rumen Radev previously called for such a vote, but the proposal was rejected by the outgoing government, fuelling claims that public consent was bypassed.

For many small business owners, recent high inflation has already squeezed profits. Some blame euro fears for falling sales, as customers delayed purchases ahead of the switch.

Political Turmoil Clouds the Transition

Bulgaria joins the euro amid one of the most unstable political periods in its modern history.

Prime Minister Rosen Zhelyazkov’s coalition government lost a confidence vote on 11 December following mass protests against the 2026 budget. The country has held seven elections in four years, and an eighth appears increasingly likely.

This instability has amplified public mistrust. Critics argue that such a major economic decision should not occur under a caretaker or weakened government.

Economists counter that delaying euro entry further could undermine Bulgaria’s credibility and deter long-term investment.

How the Euro Will Change Daily Life

In practical terms, the shift may feel less dramatic than feared.

Since August 2025, all shops have been required to display prices in both lev and euros. Conveniently, €1 equals 1.95583 lev, making conversions relatively straightforward.

To counter fears of price manipulation, authorities established consumer watchdogs to monitor rounding practices. Some prices have even dropped slightly. Public transport fares in Sofia are set to fall marginally after the transition.

Shopkeepers like Ognian Enev, who runs a tea shop in central Sofia, say the change feels mostly technical. “People already think in euros,” he said. “It doesn’t bother me.”

Preserving National Identity Through Coin Design

To address sovereignty concerns, Bulgaria insisted on national symbols for its euro coins.

The €1 coin features St Ivan of Rila, Bulgaria’s most revered saint. The €2 coin depicts Paisius of Hilendar, a key figure in the Bulgarian national revival. Smaller eurocents show the Madara Rider, an 8th-century symbol of early Bulgarian statehood.

Officials hope these designs send a clear message: Bulgaria joins the euro without erasing its identity.

Lessons From Other Eurozone Countries

As Bulgaria joins the euro, economists point to two contrasting paths.

The Baltic model, followed by Estonia, Latvia, and Lithuania, paired euro adoption with reforms targeting corruption, efficiency, and investment. Those countries saw long-term growth and stability.

The Italian model tells a different story. Italy’s euro years brought stagnation, weak productivity, and growing public debt.

Some Bulgarians fear the latter outcome. “I’m afraid we’ll be more like Italy,” Enev admitted.

What Happens Next

The next 12 months will prove decisive.

Authorities must enforce price controls, stabilise politics, and reassure sceptical citizens. Businesses will complete technical upgrades, while banks and public services adjust fully to euro-only operations.

Much depends on whether Bulgaria’s leaders can pair euro membership with meaningful governance reforms — especially in tackling corruption and improving public trust.

Failure could deepen disillusionment. Success could accelerate Bulgaria’s economic convergence with Western Europe.

Conclusion

Bulgaria joins the euro at a moment filled with both promise and uncertainty.

For supporters, it marks the end of a long European journey and the start of deeper economic integration. For critics, it feels rushed, imposed, and risky amid political chaos.

The euro itself will not solve Bulgaria’s problems. But how the country uses this moment may determine whether euro adoption becomes a springboard for reform — or another missed opportunity.