Why Bulgaria is adopting the euro from today and what it means
Bulgaria is set to adopt the euro on New Year's Day, becoming the 21st eurozone member. This move, replacing the Bulgarian lev, promises enhanced economic stability, easier trade, and increased influence. While proponents highlight growth and resilience, opponents voice concerns about inflation and loss of monetary control, reflecting public division on this strategic choice.
New Delhi: Bulgaria is all set to begin using the euro from the New Year Day. It will become the 21st member of the eurozone as the country says farewell to its national currency, the Bulgarian lev (BGN).
Earlier last year, Bulgaria got permission to join the eurozone, the group of European Union countries that use the euro as their official currency.
The approval was granted after Bulgaria met the formal entry criteria this year, including requirements for inflation, budget deficit, long-term borrowing costs and exchange rate stability. It was in 2007 that Bulgaria, home to only 6.7 million people, became a member of the European Union.
Why it is joining the eurozone
The European Union consists of 27 countries. The eurozone, comprising countries that use the euro, includes 20 of the EU’s 27 nations, excluding Denmark, Sweden, Poland, Hungary, the Czech Republic, and Romania. The euro is the world’s second most traded currency, after the US dollar. It is used by approximately 350 million people.
For a long time, Bulgaria has been keen to join the eurozone. It first proposed the move in 2018, with its currency pegged to the euro since 2007.
Joining the eurozone offers several advantages to Bulgaria, such as improved economic stability, simpler trade, and increased political and economic clout. Besides using euro notes and coins, members also gain a seat on the European Central Bank’s rate-setting Governing Council.
Even though Bulgaria is still among the EU’s less affluent members, its economy has seen significant growth over the past decades. The country’s GDP rose from about $44 billion (Rs 3.96 lakh crore) in 2007 to an estimated $150 billion (Rs 13.49 lakh crore) in 2025, while GDP per capita went up from around $6,000 (Rs 5.39 lakh) to approximately $20,000 (Rs 17.98 lakh) over the same period.
In November, Bulgaria’s Prime Minister Rosen Zhelyazkov reportedly said that embracing the euro would boost Sofia’s position in Europe. He called it "not just a currency, but a strategic choice”. Joining the eurozone will strengthen Bulgaria’s economic foundations, improve its resilience to global shocks, and increase its influence in eurozone decision-making. From January 1, 2026, Bulgarians will have to use only the euro.
What is the stand of opponents
Opponents contend that Bulgaria will lose control over its monetary policy by adopting the euro. They have warned that prices could shoot up while wages are likely to stagnate. The detractors also claim that the move would essentially benefit the wealthy and elite, with inflation disproportionately affecting the elderly and low-income earners.
But, the European Union has said that there is no proof to indicate that joining the eurozone leads to a surge in inflation. Bulgarians remain split on the issue. A poll by Bulgaria’s Ministry of Finance revealed that about 51 per cent of citizens backed joining the eurozone, while 45 per cent opposed it.