Bulgaria has officially adopted the euro as its currency, becoming the 21st country to join the eurozone. The switch, which took place on January 1, marks a significant milestone for the Balkan nation, nearly 20 years after it joined the European Union. The European Central Bank’s president, Christine Lagarde, welcomed Bulgaria to the euro family, calling the euro a “powerful symbol” of shared values and collective strength.
The adoption of the euro is expected to boost the economy of the European Union’s poorest member, reinforce ties to the West, and protect against Russia’s influence. However, the decision has been met with mixed reactions from Bulgarians, with many worrying about potential price hikes and added political instability. Successive governments have advocated for joining the euro, but the population remains divided, with 49% opposing the switch, according to the latest Eurobarometer survey.
As the country began to transition to the new currency, thousands of people gathered in the capital, Sofia, to celebrate the New Year. President Rumen Radev hailed the adoption as the “final step” in Bulgaria’s EU integration, while also expressing regret that citizens had not been consulted through a referendum. The switch is expected to make traveling and living abroad easier, boost market transparency and competitiveness, and facilitate trade, according to European Commission President Ursula von der Leyen.
The introduction of the euro has raised concerns about inflation, with food prices rising by 5% year-on-year in November, more than double the eurozone average. Some business owners have complained about difficulties in obtaining euros, and there are fears that any problems with the adoption could be seized upon by anti-EU politicians. Nonetheless, the adoption of the euro is a significant step for Bulgaria, bringing the number of Europeans using the currency to over 350 million. As the country navigates this change, it will be important to monitor the impact on its economy and citizens.