Jan 01, 2026
3 min read
The Eastern European country is in the process of converting its national currency, the lev, to the euro.But although Bulgaria's economy has improved, mismanagement and corruption remain serious problems.
Bulgaria adopted the euro: a historical milestone and future challenges
December 30, 2025 On January 1, 2026, Bulgaria will become the 21st member country of the Eurozone.Joining the fund is an important step for the Eastern European country, which joined the European Union in 2007.
Only six of the 27 EU countries are outside the currency club: Sweden, Poland, the Czech Republic, Hungary, Romania and Denmark.
Bulgarian Prime Minister Rosen Žeľazkov said at a November conference in Sofia that the euro is "not just a currency, but also a strategic choice that strengthens Bulgaria's position in Europe."
At the same event, ECB President Christine Lagarde said the adoption of the euro "strengthens Bulgaria's economic fundamentals, increases its resilience to global shocks and enhances its voice in euro area decision-making".
However, not everyone is optimistic about the Balkan country joining the Eurozone.
"Supporters are of the opinion that joining the 'rich club' will be in the country's interest and will lead to significant progress," Rositsa Rangelova, a professor at the Institute of Economic Research of the Bulgarian Academy of Sciences, told DW.
"What is shown is that Bulgaria will raise its standard of living and well-being, but it is not necessary because of the need for reform that is long overdue. Without this, our country will not be able to participate in this situation," he added.
How is the Bulgarian economy doing?
Bulgaria's national currency, the lev, has been pegged to the euro since its introduction in 1999.
Sofia officially began the process of joining the currency bloc in 2018, and the lev was then included in the European Exchange Rate Mechanism in July 2020.
Earlier this year, the European Commission and euro zone finance ministers confirmed the country's candidacy to join the currency.
Being a member of the European Union shows the quality of the Bulgarian Economy in the last ten years of the Macrookomic signal, with 202% in the mean of at least 1% in the mean of up to 13% in the mean of up to 13% in the point of up to another:
Budget deficit and total food level - at least 3% and 24%, as many profitable countries retain their income.
The growth prospects also look positive.The EU estimates that the country's real GDP will increase by around 3% this year, by 2.7% in 2026 and by 2.1% in 2027.
Catch up
"Bulgaria's macroeconomic performance has been stable in recent decades, although its economic growth and recovery have slowed," Guntram Wolff, a eurozone financial policy expert at European economic think tank Bruegel, told Guntram Wolff.
Norbert Beckmann, director of the Konrad Adenauer Foundation Office in Bulgaria, expressed a similar opinion.
He said the country meets all the convergence criteria to join the eurozone, noting that the country has one of the lowest debt-to-GDP ratios in Europe.
"However, the Bulgarian economy still has a long way to go in terms of structure and performance. Bulgaria's income level is also only 59% of the EU average."
But experts warn of the risk that the Bulgarian government will loosen budget constraints and overspend after accepting the euro.
"The main risk is that the budget constraint after joining the euro may be less binding by the political system and the deficit may increase," Wolff said."But given the low level of debt, I don't think that risk is significant."
Beckman also stressed the need to avoid market distortions.
"It is very important that income always reflects the capacity of the economy and that people do not live beyond their means. If income is depleted and artificially inflated by credit, this can lead to distortions, as we saw in Greece," he told DW.
Political turmoil creates dangers
At the same time, political instability is a serious challenge. In recent months, public anger and frustration have grown over economic mismanagement and rampant corruption.
A Bulgária — um dos Estados mais pobres da UE — está entre os países mais corruptos do bloco, de acordo com o Índice de Percepção da Corrupção da Transparência Internacional.
The Balkan country of 6.4 million people has held seven parliamentary elections since 2021 and could face more elections in the coming months.
Prime Minister Rosen Zhelyazkov's government resigned on December 11 amid widespread anti-corruption protests and budget plans including tax increases and social security contributions.
Although the budget was withdrawn, public anger continues.
If the establishment of a new government will be reported, the president will appoint an interim government and promote early elections, which will be held by the elections, which will be held for a period of four years.
But if the vote does not make the coalition work, it could prolong the political crisis and weaken the confidence of investors.
Opinions differ between people
Polls show that Bulgarians are also divided about adopting the euro.Proponents of the single currency claim that it will, among other things, stimulate the flow of foreign investment into the country, eliminate currency costs and lead to greater integration into the EU single market.
However, skeptics fear an increase in inflation as the prices of goods and services will be converted to the national currency, the lev and euro.Some worry that the Frankfurt-based European Central Bank (ECB) will lose control of monetary policy.
"The process of joining the euro zone will not benefit the economy of Bulgaria. It will be part of the euro zone, which is less flexible and cannot reduce or eliminate its concerns on its own," Rangelova said.
He also criticized the Bulgarian authorities for not voting on joining the euro."For these important tasks, the government of a democratic country takes public opinion," he said, "Bulgarian authorities have rejected elections based on public opinion for years and still find ways to ignore them."
While there are genuine concerns, Wolff said, disinformation campaigns and conspiracy theories have fueled anti-euro sentiment.
"Bulgaria is regularly attacked by Russian disinformation and Russia is definitely trying to persuade the country to return to its influence," he said.
"By joining the euro, Bulgaria is firmly entrenching itself in Western Europe - which strengthens the European Union. It will be necessary to intensify efforts to fight the Russian hybrid war and to strengthen the fight against corruption."
Despite frequent changes of government in recent years, Beckmann said that "Bulgarian parties and politicians who want to introduce the euro and promote the country's integration with the West have always had a majority in parliament."
He emphasized that the position of Eurosceptic "is always in the minority in Bulgaria."
"I don't think that will change in the future," he added."So there is no reason to believe that Bulgaria's membership of the eurozone could weaken the euro in any way."
Rangelova disagrees.He believes that joining the Eurozone at any cost will not lead to prosperity."Instead of joining the Eurozone now, Bulgaria should focus its efforts on stabilizing the political situation and pursuing rational macroeconomic policies supported by strong domestic institutions and good governance."
