Eighteen years after joining the European Union, Bulgaria has received final approval from the Council of European Union to join the euro area and adopt the ‘Euro’ as its currency starting 01 January 2026. This will make Bulgaria the 21st member of the euro area, and only the second nation to join in the past decade, after Croatia.
Bulgaria began its path to euro adoption shortly after joining the European Union (EU) in 2007. Efforts stalled during the Eurozone debt crisis, but resumed in 2016. With inflation under control and public debt among the lowest in the EU, Bulgaria met all five Maastricht convergence criteria in 2025.
Prime Minister Rossen Jeliazkov called the development a “landmark moment,” promising a smooth and effective transition. The euro will replace the lev at a fixed rate (1.95583 Lev = Eur 1), with dual pricing set to begin from August 2025. European Central Bank (ECB) and Bulgarian National Bank will monitor the developments in the Bulgarian lev against the euro on the foreign exchange market until 01 January 2026.
Economically, euro adoption is expected to lower transaction costs, improve credit ratings, and boost foreign investment. Bulgaria’s Central Bank said the move will strengthen its financial sector, ease trade flows, and benefit tourism, which accounts for over 6% of its GDP.
Public opinion is divided, with concerns over inflation and cost of living. Some opposition groups have framed the shift as a loss of sovereignty, calling for protests and referendum. The Bulgarian Parliament had overwhelmingly backed the transition, reinforcing its alignment with long-term EU commitments.
Bulgaria’s entry is seen as a sign of trust in the EU amid growing geopolitical uncertainty. It also brings clear responsibilities for Bulgaria – ensuring fiscal discipline, strengthening anti-money laundering efforts, and managing the challenges of the transition.
The euro is the world’s second most popular currency. The stability of the euro makes it attractive for businesses around the world that trade with Europe.
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𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: This post has reference to open sources including Bloomberg, European Central Bank press releases, the Hindu and Reuters.
