European Commission Approves Bulgaria's Euro Adoption by January 1, 2026

The European Commission has granted Bulgaria the green light to adopt the euro as its official currency starting January 1, 2026. This decision is based on the assessment that Bulgaria meets the necessary criteria for euro adoption, marking a significant milestone for the nation.

Bulgaria plans to replace its current currency, the lev, with the euro, making it the 21st member state to join the eurozone. The last country to adopt the euro was Croatia, which transitioned to the common currency on January 1, 2023.

Ursula von der Leyen, President of the European Commission, emphasized the euro's role as a symbol of European unity and strength. She stated that the adoption of the euro is expected to enhance Bulgaria's economy by facilitating increased trade with eurozone partners, attracting foreign direct investment, and improving access to financial resources, ultimately leading to better job opportunities and real income growth.

Despite this positive outlook from the European authorities, the announcement has sparked significant protests within Bulgaria. Many citizens, particularly supporters of nationalist and pro-Russian parties, have expressed their opposition to the euro's introduction, fearing that it could lead to higher prices and a loss of national sovereignty.

Bulgaria has been a member of the European Union since 2007 and, according to Eurostat, it has consistently ranked as one of the EU's lower-income nations, with its GDP per capita still trailing the EU average by 34% as of 2024, despite having higher growth rates than many other countries.

Joining the eurozone is expected to simplify commerce and travel, eliminating concerns over exchange rates for businesses and consumers alike. Tourists will also benefit from the elimination of foreign currency exchange requirements, reducing associated costs.

To qualify for euro adoption, Bulgaria must meet several convergence criteria, including price stability, sound public finances, and stable exchange rates. The European Central Bank (ECB) and European Commission regularly monitor the progress of candidate countries in fulfilling these criteria. The final decision to allow a country to adopt the euro rests with the Council of the European Union, which evaluates recommendations made by the Commission after consulting the European Parliament.

All EU member states, with the exception of Denmark, are obligated to join the eurozone once they meet the necessary conditions. In addition to Bulgaria, countries such as Poland, Romania, Sweden, the Czech Republic, and Hungary are still in the process of preparing for their euro adoption.

Initially, Bulgaria aimed to switch to the euro by early 2024; however, concerns over a high inflation rate of 9.5% at that time led to a postponement. The European Commission determined that the country did not fulfill the price stability criterion at that moment.

Now, the ECB believes Bulgaria is ready for the euro, highlighting notable advancements in key economic indicators since 2024. ECB Chief Economist Philip R. Lane stated that this positive assessment paves the way for Bulgaria to proceed with its euro adoption.

To further stabilize its economy, the ECB has indicated that Bulgaria must undertake substantial structural reforms, including measures to combat corruption, ensure an independent and efficient judicial system, and improve its educational framework. Additionally, enhancing infrastructure is crucial for increasing the country's production capacity.

The debate surrounding the euro adoption is intensifying within Bulgaria, with recent protests organized by opposition groups calling for the retention of the lev. These groups contend that the government has manipulated data to pursue euro adoption. The leader of the nationalist party Wasraschdane has demanded a national referendum on the matter, claiming widespread public dissent against abandoning the lev. Despite collecting over 600,000 signatures in support of a referendum, the Bulgarian Parliament has twice rejected proposals for a public vote on this issue in 2023 and May 2025.

Public opinion on the euro adoption is deeply divided. A recent survey conducted by the Mjara Institute indicates that approximately 54.9% of adults oppose the euro's introduction, while 34.4% support joining the eurozone next year. In contrast, a Gallup International Balkan poll reveals that 33.4% perceive potential benefits from euro adoption, whereas 32.9% fear potential drawbacks. A further 22.6% expect no significant impact from the transition.