Bulgaria's Euro Adoption in 2026: What It Means for the Country

On January 1, 2026, Bulgaria is set to replace its national currency, the lev, with the euro, becoming the 21st member of the Eurozone. During the first month of the transition, ATMs across the country will only dispense euro banknotes, although both lev and euro will remain legal tender during this period. This marks a significant milestone in Bulgaria’s economic integration with the European Union (EU) and is expected to have far-reaching consequences for the country’s economy, politics, and society.

Background of the Euro Transition

Bulgaria's aspiration to adopt the euro has been ongoing for several years. The country joined the EU in 2007 and has since worked toward meeting the convergence criteria required for euro adoption. Despite previous delays, mainly due to inflation concerns, Bulgaria has now met most of the necessary conditions, including stable public finances and a low debt-to-GDP ratio. In February 2025, it was reported that Bulgaria had achieved an inflation rate of 2.6%, placing it within the acceptable range for euro adoption.
(Source: Reuters)

Preparations for the Transition

Ahead of the transition, the Bulgarian National Bank (BNB) has taken several measures to ensure a smooth switch. The design for Bulgarian euro coins has been approved, and minting will begin as soon as the EU Council formally gives the green light to Bulgaria’s euro accession. During the transition phase, starter kits of euro coins will be made available to both businesses and private individuals to facilitate the changeover.

Economic Impacts

The adoption of the euro is expected to bring several economic benefits to Bulgaria:

• Increased investment: With reduced currency risk and deeper integration into the EU’s economic framework, Bulgaria may become more attractive to foreign investors.

• Lower borrowing costs: With improved credit ratings and greater economic stability, Bulgaria can expect lower interest rates on government loans, reducing the cost of public debt.

• Price transparency: A common currency will make it easier for consumers to compare prices across borders, which may promote competition and lead to lower prices.

However, there are also challenges. Some economists and citizens express concerns about potential price increases following the transition, similar to those observed in other euro-adopting countries. The government has emphasized that it will implement measures to minimize such effects and protect consumers.

Political and Social Reactions

The move to adopt the euro has not been without controversy. In February 2025, thousands of members of the nationalist Vazrazhdane party protested in Sofia against the planned adoption. Demonstrators voiced fears of losing national sovereignty and the potential economic downsides of the transition.
(Source: Reuters)

Despite the protests, the Bulgarian government, led by Prime Minister Rosen Zhelyazkov, has remained committed to the transition. The government views euro adoption as a step toward deeper EU integration and an opportunity to strengthen the country’s economic future.

Conclusion

Bulgaria’s planned euro transition on January 1, 2026, represents a major shift in the country’s financial landscape. With careful preparation and a clear strategy, the government aims to ensure a smooth changeover that benefits both the economy and the citizens. Although there are challenges and opposition, it is clear that Bulgaria sees euro adoption as a vital step toward a more stable and integrated future within the European Union.