Euro switch: Bulgaria joins the euro nearly two decades after EU entry; cheers mix with fears over prices

Bulgaria on Thursday adopted the euro as its official currency, becoming the 21st country to join the eurozone, a long-anticipated milestone that comes almost 20 years after the Balkan nation entered the European Union, but one that has exposed deep political and public divisions.At midnight, Bulgaria formally gave up the lev, which had been in use since the late 19th century, marking the transition with projections of Bulgarian euro coins on the central bank’s building in Sofia. The country of 6.4 million people joined the eurozone amid New Year celebrations that blended optimism with anxiety over inflation and political instability, AFP reported.“I warmly welcome Bulgaria to the euro family,” European Central Bank president Christine Lagarde said, describing the euro as a “powerful symbol” of “shared values and collective strength”.For some Bulgarians, the switch was tangible and immediate. “Great! It works!” said Dimitar, a 43-year-old, after withdrawing 100 euros from an ATM shortly after midnight.Successive Bulgarian governments have backed euro adoption, arguing it would strengthen ties with the West, boost the economy of the EU’s poorest member and shield the country from Russian influence. But public opinion has remained split, with many fearing that the transition could push up prices and worsen political uncertainty.President Rumen Radev, speaking shortly before midnight, hailed the move as the “final step” in Bulgaria’s EU integration, even as thousands gathered in sub-zero temperatures in Sofia to mark the New Year. He also expressed regret that Bulgarians had not been consulted through a referendum.“This refusal was one of the dramatic symptoms of the deep divide between the political class and the people, confirmed by mass demonstrations across the country,” Radev said.The euro switch comes at a turbulent political moment. Anti-corruption protests ousted a conservative-led government in mid-December, leaving Bulgaria facing the prospect of its eighth election in five years.“People are afraid that prices will rise, while salaries will remain the same,” a woman in her 40s told AFP in Sofia.At major markets in the capital, prices for goods ranging from groceries to New Year’s Eve items were displayed in both levs and euros. “The whole of Europe has managed with the euro, we’ll manage too,” said Vlad, a retired resident.European Commission president Ursula von der Leyen said Bulgaria’s entry into the eurozone marked “an important milestone”, adding that it would make travel and living abroad easier, improve market transparency and competitiveness, and facilitate trade.Central bank governor Dimitar Radev said the euro represented more than “just a currency — it is a sign of belonging”.However, concerns remain widespread. According to the latest Eurobarometer survey, 49% of Bulgarians oppose the switch. Outgoing prime minister Rossen Jeliazkov sought to reassure citizens and businesses, saying he was “counting on the tolerance and understanding” of the public and insisting that inflation was not linked to euro adoption.Official data show that food prices rose 5% year-on-year in November, more than double the eurozone average. “Unfortunately, prices no longer correspond to those in levs,” pastry shop owner Turgut Ismail, 33, told AFP, saying prices had already begun to rise.Analysts warned that any disruption could be politically sensitive. “Any problems with euro adoption would be seized on by anti-EU politicians,” said Boryana Dimitrova of the Alpha Research polling institute.Some business owners complained of difficulties accessing euros ahead of the switch, while critics questioned the timing. “It’s not the right time,” said Stephane, a 64-year-old economist, citing high debt levels in other eurozone countries.The euro was first introduced in 12 countries in 2002, with Croatia the most recent entrant in 2023. Bulgaria’s accession brings the number of people using the single currency to more than 350 million.