A wish finally granted in January: Bulgaria enters the euro era

A wish finally granted in January: Bulgaria enters the euro era

Since this summer, Bulgarians have been preparing for the switch to the Euro from the Bulgarian Lev. Everywhere in shops, prices have been displayed in both currencies. However, the Bulgarian political system remains fragile. In four years, the country has held seven elections, which has considerably destabilized the domestic political situation. Some fear that this instability will worsen with the adoption of the euro.

Legally, all European Union countries have committed to adopting the euro, but six remain outside the system. However, Denmark has chosen the op-out option written in EU law, and Sweden has decided to not be a member of the Exchange Rate Mechanism (ERM II) nor to adopt the Euro. Regarding Poland, the Czech Republic, Hungary, and Romania, they have not yet met the necessary economic criteria or remain hesitant for political and public opinion reasons. EU member states outside the euro zone must implement measures to control inflation, budget deficits, and public debt, according to the Maastricht convergence criteria. 

Euro Transition Amid Political Crisis

At the time of this historic transition, the country is mired in political instability. The government resigned in the face of fierce criticism regarding the 2026 budget, the first in euros. On December 11, 2025 Prime Minister Rosen Zhelyazkov, expected to announce a vote of no confidence, surprised everyone by instead announcing his resignation. The government yielded after several days of popular pressure from across the country, with tens of thousands of protesters. The draft budget had included a substantial increase in social security contributions, triggering discontent in a country riddled with corruption. These long-standing governance problems have also driven many Bulgarians to emigrate for economic reasons. Thus fell the seventh government in four years, fragile from the outset as a minority coalition dependent on the goodwill of the opposition. Delyan Peevski, politician and media mogul, an oligarch subject to international sanctions by the USA and the UK, is accused of controlling the judiciary and the government also by its political opponents. The pro-Western opposition had also been demanding the government's resignation. Assen Vassilev, head of the political coalition  "Continue the Change", stated that "this is a first step towards a Bulgaria that inspires stability in Europe. The next step is free and fair elections." For now, parliament is trying to form a new government. If this fails, the president will appoint a transitional government until the next elections.

A Transition That Worries Part of the Population

As in other European Union countries prior to their adoption of the euro, Bulgaria is experiencing significant public apprehension about the forthcoming monetary change. A significant portion of the population is worried about the impact of the switch to the euro on the national economy. Concerns focus primarily on speculation and a possible widespread price increase, particularly for basic necessities. While the Croatian example is often cited to put these fears into perspective, prices there did not rise significantly during the transition to the euro, according to economist Petar Šorić The Bulgarian situation appears more precarious. The fact that the government has deemed it necessary to artificially regulate the price of certain foodstuffs fuels suspicions of an impending inflationary shock, as highlighted by Reuters.

Beyond immediate concerns, some critics believe that adopting the euro could facilitate money laundering by accelerating and streamlining financial transactions. By standardizing the currency and integrating Bulgaria fully into the eurozone’s fast, cross-border banking and payment systems, large sums of money could move quickly between accounts in different countries with less scrutiny, making it harder for authorities to track illicit financial flows.This mistrust is deeply rooted in the Bulgarian collective memory. The generations who lived through the hyperinflation of the 1990s, a period of economic chaos and massive loss of purchasing power, retain a traumatic memory of the monetary collapse. For many, the idea of ​​abandoning the lev in favor of a new currency reawakens this fear of losing control over their economic stability.

Fear Campaigns in a Sensitive Geopolitical Context

The question then arises: who is trying to frighten the Bulgarian population in the face of the transition to the euro? Bulgaria has always occupied a position at a geographical, political, and cultural crossroads, making it fertile ground for multiple foreign influences. As the country has become more integrated into the European Union, campaigns hostile to the euro and closer ties with Western Europe have intensified. The lever of identity, particularly powerful in times of uncertainty, is widely used to fuel these fear-mongering narratives.

In this tense climate, some political parties are openly exploiting fears about adopting the euro to spread anti-European rhetoric. This is particularly true of the Vazrazhdane party, which means "Renaissance" or "Awakening" in Bulgarian. Emerging from the October 2024 elections with 33 seats in parliament, this Russophile party identifies as sovereignist and Eurosceptic. In 2023, it launched a petition that was supported by 603,000 signatures to hold a referendum against the euro.

Its chairman, Kostadin Kostadinov, regularly asserts that the disappearance of the Bulgarian lev "would spell the end of the Bulgarian state." According to him, joining the eurozone is not a voluntary choice, but an imposed annexation. Vazrazhdane claims to be fighting against what he calls Bulgaria's "forced entry" into the Eurozone, and is multiplying initiatives hostile to the European currency. Kostadinov goes so far as to declare that Russia is the only ally capable of defending Bulgarian national interests, which he believes have been violated in recent years.

These speeches resonated in the streets. In Sofia, thousands of people demonstrated against the euro, with some actions escalating into violence, including molotov cocktails and paint cans being thrown at the European Union representation building. These demonstrations were supported, openly or implicitly, by the Renaissance party, which adopts a radical rhetoric:

"We will do everything in our power to destroy the eurozone. It is the enemy of Bulgaria's economic and financial interests," proclaims Vazrazhdane.

Economists in Favor of the Euro

Bulgaria is currently the least wealthy country in the European Union, with a GDP per capita of around €24,000, compared to the European average of €38,000. Yet, according to European institutions in Brussels, the conditions are right for the country to join the eurozone. For many Bulgarian economists, this decision is not only conceivable, it is logical. Krassen Stanchev, an economist at the Institute for Market Economies, asserts that Bulgaria has been ready for a long time. According to him, the country has been ready "since March 1, 1997," the date on which the Bulgarian lev was pegged to the Deutsche Mark and then automatically readjusted to the euro in January 1999. This commitment to low inflation and fiscal stability which underpins its predictable economic environment, explains why Bulgaria regularly ranks among the top three EU countries in annual rankings of the most competitive tax systems.

Aware of public concerns, the authorities have announced several measures to easethe transition. In particular, a price control mechanism has been implemented to prevent any artificial price spikes during the switch to the euro. The Bulgarian National Bank has also begun selling the first euro coin sets, featuring national historical figures. Their design, deliberately similar to that of the lev, aims to make the transition more smooth and less abrupt for citizens.

Contrary to sovereigntist rhetoric, this would not represent an abandonment of national sovereignty, but rather an additional obstacle to corruption. Integration into the eurozone would entail increased oversight by European institutions, thus limiting the room for maneuver of corrupt politicians and strengthening the transparency of public finances.

This argument is finding increasing resonance among the population. Thousands of Bulgarians have demonstrated in front of parliament to denounce the country's fiscal policy. Among them are many young people, determined to oust a political elite they consider corrupt. Just a month ago, opinion polls shifted in favor of the euro, a sign of a significant change in public opinion.

National Identity and European Belonging

A lawyer by training and an influential figure in Bulgaria, Mimi Shishkova-Petrova observes that the announcement of new euro coins featuring Bulgarian historical figures has helped to ease identity tensions. She believes that these pronouncements stem more from political manipulation than from genuine cultural concern. She points out that Bulgaria was part of the Ottoman Empire for several centuries and then lived under a communist regime for 45 years, without ever losing its distinct identity.For supporters of the euro, this adoption now appears as a logical step for a country that has been a member of the European Union since January 1, 2007. The euro is seen as an opportunity to attract more investment, create better jobs, and facilitate tourism with the rest of Europe.

The debate surrounding the adoption of the euro goes far beyond monetary issues alone. It is part of a broader, deeply rooted conflict concerning identity and the sense of national belonging. Behind the currency, a fundamental question remains: what does it mean to be Bulgarian today? For a segment of the population, the transition to the euro is not merely an economic change, but a symbol of cultural transformation, from traditional Bulgarian habit to a more western globalized culture, perceived as a threat.

Bulgaria is a country composed of about 10 ethnic groups, with ethnic Bulgarians forming the majority and smaller communities such as Turks, Roma, spread across 7 major regions. Each has its own traditions, customs, and cultural references. This diversity is a strength, but it also makes the question of national identity more sensitive. For some Bulgarians, the euro represents a loss of bearings. The lev, the national currency, represents much more than a simple economic tool: it is perceived as an element of heritage, a symbol of sovereignty and historical continuity. Its abandonment fuels the fear of a dilution of national identity within a European entity deemed too homogeneous.

In Western Europe, Bulgaria remains a relatively unknown country, often trapped in stereotypes linked to its communist past. Many still wrongly associate it with the Soviet Union, even though Bulgaria was never part of it, despite being its most loyal satellite. This confusion contributes to a biased view of the country and its citizens. The outside world sometimes tends to reduce Bulgaria to a fixed identity, marked by authoritarianism and economic backwardness.

This reductive view is regularly contradicted by Bulgaria's vibrant cultural scene. When free and audacious artists, creators, and public figures are brought to the forefront, stereotypes crumble. "People are unsettled because it doesn't fit the image they had in mind," explains chalga singer Azis. Music, moreover, is a powerful vehicle for cultural visibility. Without always realizing it, we are already familiar with Bulgarian songs. The choirs of the Mystery of Bulgarian Voices, notably Pilentze Pee, have inspired countless international pop hits, including Jason Derulo's Breathing. Hip-hop fans will recognize Bulgarian samples in Chabos wissen wer der Babo ist de Haftbefehl or Stromae's L'Enfer. Even more iconic, Izlel Delyo Haïdoutin, performed by Valya Balkanska, was sent into space in the 1970s as a message to potential extraterrestrial civilizations. More recently, social media has popularized Biser King's Dom Dom Yes Yes, while the vocal hook "Skibidi" is now listed in the Cambridge Dictionary.

For Mimi Shishkova-Petrova, a lawyer and influential figure in Bulgaria, the country's future should not be viewed as an identity dilemma. She envisions a strong Bulgaria, confident in its place within the European Union, and united with other European nations without denying its unique character. According to her, it is possible to honor one's culture, history, and identity while being fully European. Adopting the euro would therefore not be a loss, but a further step in a constantly evolving Bulgarian identity.

Thus, Bulgaria's adoption of the euro is as much a test of political resilience as it is of economic capacity and cultural confidence within the country. While fears related to increased elite corruption or the loss of national identity persist, they are accompanied by budgetary control and closer ties with other European countries. Therefore, the transition to the euro projects the image of a Bulgaria committed to a more harmonized European future while simultaneously affirming its rich heritage, as exemplified by the vignettes featuring symbols of Bulgarian historical figures on the new coins.