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Bulgaria joins eurozone amid political and public divide
Bulgaria has officially become the 21st member of the eurozone, surpassing wealthier candidates like Poland, Hungary, and the Czech Republic in the process. The adoption of the euro marks the latest milestone in Bulgaria's integration into European institutions, following its accession to NATO, the EU, and the Schengen zone. However, the transition has exposed deep divisions within the country.
Public opinion split along generational and urban-rural lines
For younger, urban, and entrepreneurial Bulgarians, the euro represents an opportunity for economic growth and greater European connectivity. Many see it as a logical step in the country's modernization. In contrast, older and rural populations view the replacement of the Bulgarian lev with skepticism and resentment. The lev, which has been the national currency since 1881, has been pegged to the euro since 1997, but its abandonment has stirred concerns about losing national identity and economic control.
Opinion polls indicate a nearly even split among Bulgaria's 6.5 million citizens regarding the euro. Political instability has further complicated the transition. Prime Minister Rosen Zhelyazkov's coalition government collapsed on December 11 after losing a confidence vote triggered by protests against the 2026 budget. Bulgaria has held seven elections in the past four years, with an eighth likely in early 2026.
"I don't want the euro, and I don't like the way it has been imposed on us. If there were a referendum, I reckon 70% of the people would vote against it."
Todor, 50, small business owner in Gabrovo
President Rumen Radev proposed a referendum on euro adoption, but the outgoing government rejected the idea. Todor, who runs a business producing colored plastics for the domestic market, reported a difficult year due to high inflation and declining sales, which he attributes to public anxiety over the currency change.
Business owners weigh risks and opportunities
While some entrepreneurs share Todor's concerns, others are more optimistic. Ognian Enev, a 60-year-old tea shop owner in Sofia, described the euro as a "technical change" that doesn't bother him. He noted that many Bulgarians, particularly those purchasing property or cars, are already accustomed to euro-denominated prices. Additionally, the 1.2 million Bulgarians living abroad have been sending remittances in euros for years.
Like many retailers, Ognian has prepared for the transition by stocking euro coins and small-denomination notes. Throughout January, customers can pay in either lev or euros, but change will be given in euros. Starting February 1, the lev will no longer be accepted as legal tender.
Ognian hopes the euro will boost trade, as many of his flavored and fruit teas come from eurozone suppliers, while his premium teas are imported from China and Japan. Since August 2025, Bulgarian law has required all shops to display prices in both currencies to ease the transition.
Economic and symbolic measures to ease transition
The exchange rate between the lev and euro has been fixed at 1.95583 lev per euro, simplifying conversions. To address fears of price gouging, consumer protection watchdogs have been established. Some prices, such as public transport fares in Sofia, have even been rounded down slightly to mitigate concerns.
The design of the new euro coins reflects efforts to preserve Bulgarian identity. The €1 coin features St. Ivan of Rila, while the €2 coin depicts Paisius of Hilendar, an 18th-century monk and national revival figure. The smaller euro cent coins display the Madara Rider, an 8th-century rock relief symbolizing early Bulgarian statehood.
Uncertain future: Baltic success or Italian stagnation?
The long-term impact of the euro on Bulgaria remains uncertain. Observers point to two contrasting models: the "Baltic model," where Estonia, Latvia, and Lithuania combined euro adoption with structural reforms, attracting investment and reducing corruption; and the "Italian model," characterized by economic stagnation following the currency switch.
"I'm afraid we'll be more like Italy."
Ognian Enev, tea shop owner in Sofia
As Bulgaria navigates this transition, the country's ability to implement reforms and maintain public trust will determine whether the euro becomes a catalyst for growth or a source of prolonged economic challenges.
