Bulgaria adopts euro, deepens EU integration amid public scepticism

Bulgaria on Thursday adopted the euro as its official currency, marking a major milestone in its European integration journey and becoming the 21st member of the eurozone , even as concerns persist over prices, sovereignty and economic security.

The move fulfills a commitment Bulgaria made when it joined the European Union in 2007 and is expected to strengthen trade, investment and mobility by integrating the country more closely with the EU’s single market and monetary framework.

With the changeover on New Year’s Day, the national currency, the lev, is being replaced at a fixed conversion rate of 0.51 euro. Bank accounts have been automatically converted, while payments in levs will be accepted for about a month, after which change will be returned in euros. Old notes and coins are expected to disappear from circulation within weeks.

The lev can be exchanged free of charge at banks, post offices and the Bulgarian National Bank until June 30, and indefinitely at the central bank.

For consumers, euro adoption is expected to ease travel and shopping across borders by eliminating currency exchange costs and enabling clearer price comparisons. Bulgarians travelling or working in neighbouring eurozone countries such as Greece will no longer need to convert money, while stronger EU consumer protection rules apply to food safety, medicines, transport and digital services.

Businesses trading with the eurozone are set to benefit from reduced transaction costs, with annual savings estimated at around one billion levs, according to the Bulgarian National Bank . The common currency is also expected to boost foreign investment by providing greater economic stability and regulatory certainty.

Eurozone membership places Bulgaria under the European Central Bank’s monetary policy, including interest rate decisions. While this means surrendering some national policy tools, Bulgaria had already given up much of its monetary independence by pegging the lev to the euro in 1997 following a financial crisis.

Bulgaria will now have a seat on the ECB’s governing council, giving it a voice in eurozone-wide decisions.

Despite the expected benefits, public opinion remains divided. Eurobarometer surveys show that around half of Bulgarians opposed euro adoption, mainly due to fears of inflation and loss of national currency identity. Concerns persist that prices could rise as retailers round up costs during the transition.

Experts say these fears reflect broader economic insecurity and distrust in institutions rather than opposition to EU membership itself. Bulgaria remains among the EU’s lowest-income countries, with average monthly wages of about 1,300 euros, and ranks second-worst in corruption perceptions within the bloc.

European Central Bank President Christine Lagarde has said past euro changeovers resulted in only a small and temporary inflation increase of 0.2 to 0.4 percentage points. Economists also note that some price rises may reflect delayed adjustments rather than euro-driven inflation.

Beyond the currency switch, deeper EU integration is expected to gradually affect daily life through improved infrastructure funded by EU grants, expanded job and education opportunities across member states, and stronger regulatory standards for labour, environment and governance.

Studies show that public support for the euro typically rises after adoption, once households and businesses adjust to the new currency and experience its practical benefits.

Bulgaria’s euro entry comes after years of delays due to inflation spikes, banking sector reforms, political instability and external shocks such as the pandemic and energy crisis. Its accession underscores the EU’s broader enlargement and integration push, even as economic and social concerns remain central to public debate.