- European Central Bank President Christine Lagarde has said that joining the eurozone would reinforce Bulgaria’s economic resilience, shield it more effectively from global shocks and grant it a stronger voice in euro-area policymaking.
- Supporters of euro membership see the move as a gateway to greater stability, lower transaction costs and increased investor confidence.
- Critics warn against inflated expectations.
- Economists caution that adopting the euro does not automatically translate into higher living standards, particularly in a country where long-delayed structural reforms remain unfinished.
Bulgaria is preparing to cross a historic threshold. On January 1, 2026, the southeastern European nation is set to abandon its long-standing national currency, the lev, and adopt the euro, formally entering the eurozone as its 21st member.
For a country that joined the European Union in 2007, the move represents far more than a technical monetary shift — it is a symbolic arrival at Europe’s economic core.
With Bulgaria’s accession, the dw.com says, only six EU member states will remain outside the single-currency bloc: Sweden, Poland, the Czech Republic, Hungary, Romania and Denmark. Sofia’s decision underscores a strategic commitment to deeper European integration — a choice Bulgarian leaders have framed as both economic and geopolitical.
Prime Minister Rosen Zhelyazkov has described euro adoption as a “strategic choice” rather than a mere currency swap, arguing that it strengthens Bulgaria’s standing within Europe and anchors its long-term economic direction.
Echoing that view, European Central Bank President Christine Lagarde has said that joining the eurozone would reinforce Bulgaria’s economic resilience, shield it more effectively from global shocks and grant it a stronger voice in euro-area policymaking.
Yet beneath the official optimism lies a more complicated national debate.
Supporters of euro membership see the move as a gateway to greater stability, lower transaction costs and increased investor confidence. Critics, however, warn against inflated expectations.
Economists caution that adopting the euro does not automatically translate into higher living standards, particularly in a country where long-delayed structural reforms remain unfinished.
Rossitsa Rangelova, a professor at the Bulgarian Academy of Sciences’ Economic Research Institute, has warned that euro entry is often presented as a shortcut to prosperity.
Without deep reforms — many of them postponed for years — Bulgaria risks entering the currency union without the economic strength needed to compete on equal terms with wealthier members.
From a macroeconomic perspective, Bulgaria has made notable progress. The lev has been effectively tied to the euro since 1999, and the country formally began its accession process in 2018, joining the EU’s exchange rate mechanism in 2020.
Earlier this year, European institutions gave their approval for Bulgaria’s entry into the eurozone, citing improved fiscal discipline and economic stability.
Inflation, which surged to double-digit levels in 2022, has eased to below 3 percent. Public debt remains among the lowest in the European Union, and the budget deficit is within EU-mandated limits. Growth forecasts, while modest, remain positive over the coming years.
Still, experts stress that headline figures tell only part of the story. Bulgaria’s income levels remain well below the EU average, and productivity gains have lagged behind those of its regional peers. While the country meets all formal convergence criteria, its broader economic structure continues to trail the rest of the bloc.
There are also warnings against complacency after euro adoption. Analysts note that low debt levels can sometimes encourage fiscal looseness, particularly in politically fragmented environments. Maintaining discipline will be critical to avoiding the kind of imbalances that once destabilized countries such as Greece.
Perhaps the most serious risk, however, lies outside the realm of economics.
Bulgaria is grappling with deep political instability and widespread public anger over corruption and governance failures. Ranked among the EU’s most corrupt countries, the nation has endured repeated election cycles, caretaker governments and mass protests. Since 2021, Bulgarians have gone to the polls seven times, with the prospect of yet another election looming.
Prime Minister Zhelyazkov resigned in December amid nationwide protests over alleged graft and controversial budget proposals, including tax increases and higher social security contributions. Although the budget was withdrawn, public frustration has not subsided.
If coalition talks fail, Bulgaria could be pushed into another snap election, prolonging uncertainty and undermining investor confidence just as the country prepares for its most consequential economic transition in decades.
As Bulgaria edges closer to eurozone membership, the moment stands as both an achievement and a test. The euro promises stability, credibility and closer integration with Europe’s economic heart. But without political cohesion, institutional reform and a sustained fight against corruption, the currency change alone will not deliver the transformation many Bulgarians hope for.
The euro may mark Bulgaria’s entry into a new monetary era — but whether it ushers in a new economic reality will depend on what the country does next.
