Bulgaria Adopts Euro Amidst Public Concerns Over Price Hikes

Bulgaria Joins Eurozone Amidst Public Apprehension

On January 1, 2026, Bulgaria officially transitioned to the Euro, becoming the 21st member state to adopt the single European currency. This historic move, nearly two decades after Bulgaria joined the European Union, has been met with a mixed public reaction, characterized by both optimism for economic integration and widespread concerns over potential price increases and inflation.

The fixed conversion rate for the Bulgarian Lev to the Euro has been set at 1 EUR = 1.95583 BGN. A dual circulation period is in effect throughout January 2026, allowing both currencies to be used, with change typically given in Euro.

Citizens Express Fears of Rising Costs

Public sentiment in Bulgaria remains divided regarding the Euro adoption. Surveys, including Eurobarometer polls, have indicated significant skepticism or opposition among a substantial portion of the population, with some polls showing around 50% of Bulgarians against the switch. A primary concern among citizens is the fear that prices for goods and services will rise while salaries stagnate, potentially worsening living standards.

These anxieties are not entirely unfounded, as food prices in Bulgaria reportedly rose by 5% year-on-year in November, more than double the Eurozone average. Some citizens, like pastry shop owner Turgut Ismail, noted that 'prices no longer correspond to those in levs,' indicating that price surges were already being observed. Furthermore, the transition coincides with a period of political instability in Bulgaria, marked by anti-corruption protests and government changes, which has contributed to public unease.

Official Measures and Reassurances

To address public concerns and prevent unjustified price hikes, Bulgarian authorities and European institutions have implemented several safeguards. These include a mandatory dual display of prices in both Lev and Euro, which began in August 2025 and will continue until August 2026. National authorities are actively monitoring prices and enforcing the correct use of the conversion rate to protect consumers.

Officials from the European Commission and the European Central Bank (ECB) have consistently stated that historical data from previous Euro changeovers shows only a 'very small and one-off increase in prices, ranging from 0.1% to 0.4%,' which typically fades quickly. ECB President Christine Lagarde emphasized that the benefits of Euro adoption are 'substantial,' citing smoother trade, lower financing costs, and more stable prices. The Bulgarian government and EU officials anticipate that Eurozone membership will bring greater economic stability, predictability, and long-term development, reinforcing Bulgaria's integration with Western institutions.

Looking Ahead

Despite the official reassurances, the transition period is viewed by many Bulgarians with a degree of caution. The government's efforts to combat price gouging and disinformation campaigns, some of which are reportedly Russian-aligned, continue as the country navigates this significant economic shift. The success of the Euro adoption in Bulgaria will largely depend on the effectiveness of these measures in mitigating inflationary pressures and building public trust in the new currency system.