Bulgaria Already Seeing Economic Boost Ahead of Euro Adoption

Early Benefits Emerge from Eurozone Path

Bulgaria is already experiencing tangible benefits from its impending adoption of the euro, according to Peter Dilov, the country's Minister of Economy and Industry. Speaking at various events in September 2025, Minister Dilov emphasized that these positive effects are visible even before the official introduction of the euro on January 1, 2026. He cited significant credit rating upgrades as a prime example of the international financial markets' growing confidence in Bulgaria's economic trajectory.

The Minister noted that the country's credit rating had been upgraded by three rating agencies by one notch, with expectations for a further increase by year-end, potentially reaching Bulgaria's highest-ever credit rating.

Credit Rating Agencies Affirm Positive Outlook

Indeed, international credit rating agencies have affirmed Bulgaria's positive economic outlook. In July 2025, Fitch Ratings and S&P Global Ratings upgraded Bulgaria's long-term foreign currency credit rating to 'BBB+' with a stable outlook. This marks the highest level within the upper-medium investment-grade category. Separately, Scope Ratings raised Bulgaria's long-term issuer and senior unsecured debt ratings to 'A-' from 'BBB+', also revising the outlooks to stable.

These upgrades were directly attributed to the formal decision by the Council of the European Union on July 8, 2025, approving Bulgaria's entry into the eurozone. The agencies highlighted that eurozone accession would significantly enhance Bulgaria's economic and financial profile by:

• Reducing currency risk
• Integrating the country more deeply into the EU's capital markets
• Providing access to the European Central Bank's (ECB) robust monetary policy and liquidity mechanisms
• Strengthening the monetary policy framework and eliminating exchange rate volatility

Broader Economic Advantages Anticipated

Minister Dilov further elaborated on the broader economic advantages expected from euro adoption. He stated that the introduction of the euro would bring greater security, competitiveness, and new opportunities for the Bulgarian economy. He projected that Bulgaria would become 'approximately 2 billion richer' upon joining the eurozone, primarily due to the elimination of annual losses of around BGN 1 billion (approximately 195 million euros) caused by currency conversion.

Small and medium-sized enterprises (SMEs), which form the backbone of the Bulgarian economy, are expected to be among the greatest beneficiaries. The removal of currency conversion costs will mean direct savings, freeing up resources for investment, innovation, and expansion. The single currency will also facilitate easier access to European markets, faster and cheaper trade, and more secure contracts with foreign partners.

ECB President Christine Lagarde also affirmed these benefits, stating on September 23, 2025, that Bulgaria's entry into the euro area would mean 'greater economic stability as well as benefits for citizens, businesses, and banks.' She noted that the euro protects savings and purchasing power, and membership would give Bulgaria a voice in decision-making on the future of the common currency.

Safeguards and Preparations Underway

To ensure a smooth transition, the Bulgarian government is implementing safeguards to protect consumer interests. This includes monitoring for unjustified price increases and ensuring that prices will be displayed in both lev and euro in the months before and after the transition. The European Commission confirmed in its 2025 Convergence Report on June 4, 2025, that Bulgaria has met the criteria for euro adoption, including price stability, sound public finances, and a stable exchange rate.