Bulgaria in the Eurozone: Benefits and Common Myths to Debunk

Translated by Federico Emanuele

The entry of Bulgaria into the Eurozone marks the completion of its European integration process, representing the final transition to the single currency. This is the last stage of a process that began with the accession of the former Eastern Bloc countries to the Union, a journey that today sees Bulgaria reach the most advanced level of its economic and institutional integration. As already envisaged by the Maastricht Treaty in Article 3a, the Union's economic policy is based on the coordination of national policies, while monetary policy is entrusted to community institutions with the primary objective of ensuring price stability. This framework finds its full realization precisely with the adoption of the euro.

According to the Economic Convergence Report on Bulgaria issued by the European Central Bank (ECB) in June 2025, the country had finally made significant progress in terms of both economic convergence and legal convergence, moving substantially closer to the requirements necessary for adopting the single currency. Inflation, while remaining an element to be monitored at both national and EU levels, has progressively realigned with Eurozone levels: public debt remains among the lowest in the Union, and the deficit is under control and decreasing. At the same time, Bulgaria has achieved full compatibility of its national legislation with the Treaties and the Statute of the European System of Central Banks, thereby satisfying the legal convergence requirement provided for by Article 131 TFEU.

Despite the progress made, Bulgaria's path toward the euro still presents some critical issues. The main one concerns the stability of domestic prices, which are vulnerable to external turbulence. However, the most significant obstacle is not economic, but rather narrative: the spread of myths and unfounded fears fueling the idea that adopting the euro makes prices uncontrollable, thereby confusing public opinion. Nevertheless, the ECB emphasizes the importance of maintaining a solid and consistent macroeconomic framework capable of supporting convergence toward the single currency, even in the presence of inflationary pressures or imbalances in international markets. In this regard, Bulgaria possesses the tools to address these challenges. Mandatory participation in ERM II (Exchange Rate Mechanism II)—the European system that prepares countries with a derogation to adopt the euro—along with the strengthening of the regulatory framework, fiscal discipline, and progressive alignment with Eurozone standards, constitute a set of guarantees that, if maintained, can ensure a sustainable entry into the single currency.

As established by Article 139 TFEU, Bulgaria's journey toward the adoption of the euro began with its entry into the European Union in 2007, when the country automatically became a Member State with a derogation, required to introduce the single currency once the convergence criteria were met. Currency conversion can, of course, generate fears, uncertainties, and even feed political narratives opposed to the euro. However, as demonstrated by the experience of all States that have already completed the monetary transition, this is a carefully designed path to maximize economic benefits and minimize side effects.

In fact, Bulgaria has put in place a solid plan to curb inflation after adopting the euro, and initial data show that the impact on prices has been limited. Citizens need not fear generalized increases, because control measures are working and the economic benefits far outweigh the risks. To prevent abuses and reassure consumers, the Bulgarian government introduced a package of anti-inflation measures including: systematic price monitoring and inspections against unjustified rounding; the obligation of dual price display in lev and euro for a full year (August 2025–August 2026); information campaigns to teach citizens how to recognize any irregularities; and collaboration with the European Commission to ensure transparency and competition in the most sensitive sectors. According to the ECB, these measures have worked, and the impact of the currency switch on prices has been limited and in line with previous euro transitions.

It is understandable that nearly half of the population was initially skeptical, fearing price hikes or a loss of economic control. However, data show that these fears have not materialized. On the contrary, the euro offers Bulgaria potential advantages that can structurally improve the Bulgarian economy, guaranteeing greater financial stability, the attraction of foreign direct investments (FDI), and full participation in ECB decision-making. Bulgaria has adopted a prudent and well-structured approach to contain inflation, and the results confirm that the transition to the euro has been managed successfully. Citizens should not fear generalized price increases, because the regulatory framework, oversight, and European experience demonstrate that the euro tends to bring more stability, more protection, and more opportunities for the Bulgarian economy.

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