Bulgaria Set to Join Eurozone as 21st Member on January 1, 2026

A New Era for Bulgaria's Economy

On January 1, 2026, Bulgaria is officially slated to become the 21st member of the eurozone, marking a significant milestone in the country's economic integration with the European Union. This historic transition will see the retirement of the national currency, the Bulgarian lev (BGN), which has been in circulation since 1881. The adoption of the euro is anticipated to bring Bulgaria closer to the heart of Europe's economic and political structures.

The Road to Euro Adoption

Bulgaria's journey towards euro adoption began with its entry into the European Union in 2007. The country committed to joining the eurozone and replacing the lev upon accession. A crucial step was taken in July 2020 when Bulgaria entered the Exchange Rate Mechanism II (ERM II), often referred to as the 'waiting room' for euro membership.

The European Commission and the European Central Bank (ECB) confirmed in June 2025 that Bulgaria had met the necessary convergence criteria, including maintaining fiscal discipline, achieving sustained economic growth, and keeping price levels and interest rates in line with EU standards. On July 8, 2025, the European Parliament endorsed Bulgaria's entry, and the Council of the European Union granted final approval. The fixed conversion rate between the two currencies has been set at 1 EUR = 1.95583 BGN.

Economic Prospects and Public Sentiment

Proponents of euro adoption, including European Commission President Ursula von der Leyen and ECB President Christine Lagarde, highlight substantial benefits. These include 'smoother trade, lower financing costs and more stable prices,' as well as increased foreign investment and a stronger voice in eurozone decision-making. Small and medium-sized enterprises are projected to save approximately €500 million annually in exchange fees.

However, the transition is met with mixed public sentiment within Bulgaria. A survey by the Ministry of Finance indicated that 51% of citizens were in favor, while 45% were against. Concerns primarily revolve around potential price increases and inflation, with some citizens fearing an erosion of purchasing power. There have also been reports of disinformation campaigns, some allegedly Russia-aligned, aimed at deepening distrust in the new currency.

The Transition Period and Lev Retirement

To ensure a smooth changeover, a dual price display period began one month after the Council's decision and will continue for 12 months after the euro's introduction, requiring all goods and services to show prices in both lev and euro. From January 1, 2026, a one-month 'dual circulation' period will commence, during which both the Bulgarian lev and the euro will be accepted as legal tender. After February 1, 2026, only the euro will be accepted.

Bulgarian lev banknotes and coins can be exchanged for euros free of charge at commercial banks and post offices until June 30, 2026. The Bulgarian National Bank (BNB) will exchange lev banknotes and coins indefinitely and free of charge. All lev-denominated bank accounts will be automatically converted into euro accounts on January 1, 2026, without fees.