Bulgaria is set to adopt the euro on Jan. 1, 2026, becoming the 21st member of the euro zone in a move that marks a major milestone nearly two decades after joining the European Union.
The Balkan country’s accession will leave six EU states outside the single currency bloc, including Poland, Hungary and Romania.
Prime Minister Rosen Zhelyazkov has described the euro as a “strategic choice” that strengthens Bulgaria’s position in Europe, while European Central Bank President Christine Lagarde has said adoption would bolster economic resilience and amplify Sofia’s influence in euro-area decision-making.
The European Commission and euro zone finance ministers approved Bulgaria’s bid earlier this year, citing stable macroeconomic indicators and compliance with convergence criteria.
Inflation has eased to about 2.8% from a peak near 13% in 2022, while the budget deficit and public debt stand at around 3% and 24% of GDP respectively — among the lowest in the EU. The bloc expects Bulgaria’s economy to grow by about 3% in 2025.
The lev, Bulgaria’s national currency, has been pegged to the euro since 1999 and entered the Exchange Rate Mechanism in 2020.
However, economists warn that euro adoption alone will not close Bulgaria’s development gap with the rest of the EU.
“Macroeconomic performance has been stable, but the catch-up process has been suboptimal,” said Guntram Wolff of the Bruegel think tank, adding that income levels remain well below the EU average.
According to the European Commission, Bulgarian incomes stand at roughly 59% of the bloc’s average.
Analysts have also cautioned against fiscal loosening after accession. “The main risk is that budget discipline weakens once inside the euro zone,” Wolff said, though he added that low debt levels mitigate the danger.
Political instability poses an additional challenge. Bulgaria has held seven parliamentary elections since 2021 amid persistent public anger over corruption and economic mismanagement. Transparency International ranks the country among the EU’s most corrupt.
Zhelyazkov resigned earlier this month following mass protests over graft allegations and controversial budget plans. If coalition talks fail, Bulgaria could face its eighth election in four years, raising concerns about investor confidence.
Public opinion on euro adoption remains divided. Supporters say it will boost foreign investment, cut transaction costs and deepen integration with the EU single market. Critics fear price increases and the loss of national monetary control.
“Joining the euro zone will not automatically raise living standards,” said economist Rossitsa Rangelova of the Bulgarian Academy of Sciences, arguing that structural reforms and stronger institutions are needed first.
Disinformation has further fuelled skepticism, analysts say, with Russia accused of spreading anti-euro narratives to weaken Sofia’s ties to the West.
“Euro adoption anchors Bulgaria more firmly in Europe,” said Norbert Beckmann of the Konrad Adenauer Foundation, adding that pro-euro parties have consistently held a parliamentary majority.
Despite lingering doubts and political uncertainty, Bulgaria’s euro accession remains on track, underscoring the country’s long-term commitment to deeper European integration.