Bulgaria poised to adopt the euro amid growing public debate

Bulgaria to Adopt Euro as 21st Member of Schengen Monetary Area

On Thursday, Bulgaria will become the 21st member of the eurozone and the Schengen monetary area. The country has been a member of the European Union since 2007 but formally met the eurozone’s entry criteria in January 2025.

The switch is expected to increase the number of Europeans using the euro to 356 million people, and it will mark the first time the single currency will be used in the Black Sea area. The move comes despite ongoing geopolitical tensions in the region.

Bulgaria has been pushing to join the eurozone since its accession to the EU in 2007. However, the country’s progress has been slowed by political instability and allegations of corruption. Under the Maastricht Treaty, EU member states must meet five criteria before they can join the eurozone, including fixed targets for inflation, budget deficit, debt-to-GDP ratio, exchange rate stability, and long-term interest rates.

The European Central Bank will continue to control monetary policy in Bulgaria. The country has set a conversion rate of 1 euro to 1.95583 Bulgarian lev under the European Exchange Rate Mechanism, which it joined in 2020 as a condition for adopting the euro.

Bulgaria’s adoption of the euro is expected to have a limited impact on the economy, with many analysts saying that the formal adoption may not bring significant changes. The country will still be subject to ECB policy and will gain a seat at the bank’s governing council, giving it a say in rating policy.

A transitional process has been put in place for businesses and consumers, with prices displayed in both leva and euros until August 2026. Bulgarians will also be able to exchange lev in cash for euros at commercial banks, post offices, or the Bulgarian National Bank from January 31 to June 30.

Source: Al Jazeera