Background on Bulgaria and its Journey to the Eurozone
On July 8, the European Union (EU) ministers gave their final approval for Bulgaria to adopt the euro, starting from January 1, 2026. This decision makes Bulgaria the 21st member of the Eurozone, a significant step for this Balkan country with 6.4 million inhabitants.
Key Figures and Reactions
Bulgarian Prime Minister Rossen Jeliazkov expressed his joy, stating, “We have achieved it!” He extended gratitude to all institutions, partners, and individuals whose efforts made this historic moment possible. The government remains committed to a smooth and efficient transition for the benefit of all citizens.
The EU ministers responsible for Economy and Finance officially set the euro at 1.95583 Bulgarian leva following the adoption of necessary legal texts.
Ursula von der Leyen, President of the EU, and Christine Lagarde, Director of the European Central Bank, congratulated Bulgaria post-approval.
Benefits and Concerns of Adopting the Euro
Valdis Dombrovskis, EU Economy Chief, highlighted that joining the Eurozone is about building a brighter and more prosperous future for Bulgaria and its citizens within Europe’s heart. He added that it is more than just replacing the leva with the euro.
However, societal division persists in Bulgaria regarding the euro. Experts attribute this skepticism mainly to fears of price increases and a decrease in purchasing power.
Expansion of the Eurozone
The approval comes as the euro has been gaining value against the US dollar, with Donald Trump’s protectionist trade policies shaking confidence in the American currency.
Initially, only 12 countries were part of the Eurozone, including France, Germany, Italy, Spain, and Greece. The euro was introduced on January 1, 2002, with banknotes and coins circulating.
- Eslovenia joined in 2007
- Cyprus and Malta followed in 2008
- Slovakia joined in 2009
- Estonia came on board in 2011
- Latvia and Lithuania joined in 2014 and 2015, respectively
- Croatia became the most recent member in 2023, bringing the total to twenty
Bulgaria had previously aimed to adopt the euro earlier, but Brussels deemed its inflation too high to meet necessary criteria. EU member states wishing to join the Eurozone must demonstrate economic convergence with other eurozone countries and a commitment to sound public spending.
