Bulgaria: Eurozone ambitions test public trust

Sofia: In a country better known for political instability—seven elections in three years—Bulgaria’s formal invitation to join the Eurozone in January 2026 marks a major turning point.

For Dimitar Radev, celebrating a decade as governor of the Bulgarian National Bank, it’s the culmination of years of economic discipline and reform.

“Membership opens new opportunities for sustainable growth and prosperity, and crowns years of consistent effort—macroeconomic convergence, institutional development, and responsible policymaking,” he told Global Finance. “For the economy, it means deeper financial integration, enhanced investor confidence, and greater resilience to external shocks. For the average citizen, the most immediate effects will be practical: elimination of exchange rate risk with our main trading partners, lower transaction costs, and more transparent pricing.”

From August, all retail prices will be shown in Lev and Euros to get Bulgarians used to the new currency. Banks and post offices will offer free conversion at the fixed rate of 51c for every Lev. Fitch Ratings raised Bulgaria’s sovereign rating to BBB+ with a stable outlook following the announcement.

Still, not everyone in Bulgaria is on board. A May Eurobarometer poll found just 43% in favor of adopting the euro, with 50% opposed—many fearing price hikes in a country long plagued by sticky inflation. Although April’s 2.7% rate met ECB criteria, deep mistrust of government and change persists. Older Bulgarians recall the 1996–1997 financial crisis that wiped out savings and nearly collapsed the economy, prompting the creation of a currency board.

Small shop owners seem most concerned, saying supplier prices are rising already, and many Bulgarians recall that the arrival of the Euro in other countries led to rising prices and sliding living standards.

Radev admits it won’t be plain sailing. He promises Bulgaria won’t “do a Greece” and go on a low interest rate fuelled spending spree. He expects it to follow the more sober example of the Baltic States.

“The real risk lies in domestic complacency: the mistaken belief that euro membership can substitute for sound national policies. It cannot. The long-term benefits will depend entirely on how consistently we uphold this commitment,” he says.