In a country known for political instability – seven of the agreement in three years – the official call of Polaria to join the euro area in January 2026 represents a major turning point.
For Dimitar Radev, which celebrates a decade as a ruler of the Bulgarian National Bank, the culmination of years of economic discipline and reform.
“Membership opens new opportunities for sustainable growth and prosperity, years of fixed voltage – economic rapprochement, institutional development, and the manufacture of responsible policies,” he told Global Finance: “For the economy, this means deeper financial integration, enhancing the investor’s confidence, and more flexibility in external shocks. For the ordinary citizen, the most urgent effects will be a process: getting rid of the risk of exchange rate with our main commercial partners, low transaction costs, and more transparent prices.”
From August, all retail prices will be shown in Lev and Euros to use the Bulgarians in the new currency. Banks and mail offices will provide free transfer at the fixed rate of 51 ° C per fiber. Fitch Ratses raised Bulgaria’s sovereign rating to BBB+ with a strategic look after the announcement.
However, not everyone in Bulgaria is on board. In May, a survey in May found only 43 % to adopt the euro, with 50 % opposition – for fear of high prices in a country with sticky inflation. Although the April 2.7 % rate has achieved the standards of the European Central Bank, the deep lack of confidence in the government and change continues. The older Bulgarians remember the 1996-1997 financial crisis, which has almost destroyed the economy and has almost collapsed, prompting the establishment of a currency council.
Small store owners seem more interested, saying that suppliers prices are already rising, and many Bulgarians remember that the arrival of the euro to other countries has led to high prices and sliding living levels.
Radev admits that it will not be a normal sailing. It is Bulgaria that will not “do Greece” and go to the low interest rate in a splash. It is expected to follow the most realistic example of the Baltic cases.
He says: “The real danger of contentment lies: The wrong belief that the euro membership can replace sound national policies. The long -term benefits cannot depend on the extent of continued adherence to this commitment.”
