Bulgaria Adopts the Euro as 21st Eurozone Member Amid Mixed Public Reactions

As of 1 January 2026, Bulgaria has officially adopted the euro, becoming the 21st member of the eurozone and bidding farewell to the lev, its national currency since the late 19th century. The move crowns a long process of economic convergence that began when the country joined the European Union in 2007.

European Central Bank (ECB) President Christine Lagarde hailed the step in a New Year’s Eve video message, calling it “a historic moment that will strengthen trade, travel and financial stability across Europe.” She even promised to raise a glass of Bulgarian wine to mark the occasion. With Bulgaria’s accession, the number of Europeans using the single currency has risen to more than 350 million.

Divided Public Opinion and Inflation Fears

Despite its symbolic and economic significance, the currency switch has not unified Bulgarian society. According to the latest Eurobarometer survey, around 49 percent of citizens oppose the adoption of the euro. Opposition is particularly strong in rural areas and among pensioners on fixed incomes, many of whom fear rising prices and a loss of purchasing power.

Those concerns have been reinforced by recent price dynamics. In November, food prices were up 5 percent year-on-year, more than double the average inflation rate in the wider eurozone at that time. “Unfortunately, prices no longer correspond to what we used to think of in levs,” said pastry shop owner Turgut Ismail in comments to the press, capturing how everyday life is being reshaped.

Throughout the year, a protest campaign under the slogan “Keep the Bulgarian lev” mobilised euro-sceptic sentiment both online and in the streets. The movement tapped into broader frustrations over the cost of living, high inflation and wages that struggle to keep pace with rising prices.

Currency Reform in the Midst of Political Turmoil

The transition to the euro is unfolding against the backdrop of one of Bulgaria’s most turbulent political periods in recent memory. Following anti-corruption protests, the government resigned in mid-December, pushing the country toward its eighth election in five years. At the same time, the state budget for 2026 has yet to be approved, adding another layer of uncertainty to the process.

Nevertheless, the technical preparations and the official timetable have proceeded largely as planned. For months, retailers, banks and small businesses have been upgrading cash registers, banking software and pricing systems to make them compatible with the euro. Dual price displays became an increasingly common sight in shops ahead of the changeover.

In his final days in office, outgoing Prime Minister Rossen Jeliazkov sought to reassure citizens about the country’s economic fundamentals. “Bulgaria is ending the year with a gross domestic product of around 113 billion euro and economic growth above three percent, placing us among the top five fastest-growing economies in the EU,” he said, arguing that the country is joining the eurozone from a position of relative strength.

From Lev to Euro: How the Changeover Works

The conversion rate has been fixed at 1.95583 lev per euro, reflecting the long-standing currency board arrangement that pegged the lev to the euro. During January, both currencies will be in circulation, but retailers are required to give change exclusively in euros. This is designed to accelerate the withdrawal of leva from the market and to help citizens adjust quickly to the new notes and coins.

From 1 February 2026, the euro will become the sole legal tender in Bulgaria. Payments in shops, restaurants, public institutions and online will then be accepted only in euro. Bank deposits, loans, salaries and public payments will be converted automatically at the official rate.

Economists note that Bulgaria’s long-standing peg to the euro should cushion some of the potential shock, since prices and contracts have effectively been linked to the single currency for years. Even so, they warn of so-called “rounding effects,” where businesses use the switch as an opportunity to round prices upwards. Regulators and government agencies have pledged intensive inspections in the first months of the transition to curb unjustified price hikes.

The Latest Step in Bulgaria’s European Integration

Adopting the euro marks a new milestone in Bulgaria’s integration into the European project. After joining the EU in 2007, the country entered the Exchange Rate Mechanism II (ERM II) in July 2020, a prerequisite for adopting the common currency. ERM II functions as a “waiting room” for the euro, requiring participating countries to keep their exchange rates within a limited fluctuation band while demonstrating macroeconomic stability.

The last country to join the eurozone was Croatia, which adopted the euro in January 2023 at a conversion rate of 7.5345 kuna per euro, becoming the 20th member. With Bulgaria now joining as the 21st member, the geographical reach of the single currency has expanded further into the Balkans, deepening regional economic integration.

Supporters argue that the switch will boost investor confidence, reduce long-term borrowing costs and more firmly anchor Bulgaria in the European financial system. Critics counter that prices will rise permanently, wages will struggle to catch up and the country will lose what little room it had to pursue an independent monetary policy, effectively outsourcing key decisions to Brussels and Frankfurt.

Ultimately, Bulgaria’s accession to the eurozone is more than a technical currency reform. It is a focal point for broader debates over the country’s economic model, national sovereignty and place within Europe. In the coming months, developments in prices, wages and politics will determine whether this historic step is embraced as an opportunity or resented as an imposed burden by the Bulgarian public.