Bulgaria’s Accession to the Eurozone: The Final Step in European Integration for the Balkan Nation
As of midnight on 31 December 2025, the Republic of Bulgaria acceded to the eurozone, becoming the 21st EU member state to adopt the euro as its national currency, ahead of Poland, Hungary, and Czechia. The Bulgarian lev, in use since 1881, was replaced by the euro, with the final conversion rate set at 1 euro to 1. 95583 leva. The fulfilment of a long-standing aspiration of successive Bulgarian governments was celebrated in the capital city of Sofia by cheering crowds and a fireworks display. A 3-D display of Bulgarian euro coins was projected on to the façade of the headquarters of the Bulgarian National Bank (BNB). The central bank’s governor, Dimitar Radev, joined the Governing Council of the European Central Bank and the BNB became a full member of the Single Supervisory Mechanism. The process of European integration had begun when Bulgaria joined NATO on 29 March 2004, followed by the European Union on 1 January 2007, and the Schengen Area on 1 January 2025
Euro coins and banknotes were first rolled out in twelve European countries on 1 January 2002. Croatia became the 20th country to join in January 2023. The subsequent accession of Bulgaria has increased the number of Europeans using the euro as their everyday currency to around 358 million. The euro in will be gradually introduced in Bulgaria through the month of January, when both the euro and the lev will be used simultaneously, with change being given in euros when leva are used as the currency of payment. From 1 January 2026, 96% of ATMs (automatic teller machines) in Bulgaria will dispense euro banknotes, and the remainder will follow within two weeks. The first successful withdrawal of euro notes, according to the Bulgarian payment service provider Borica, was reported to have taken place just 20 seconds after midnight in the Sunny Beach resort. All bank deposits and loans have been automatically converted into euros. In preparation for the transition, the display of prices in both leva and euros became compulsory from 8 August 2025 onward and this will continue until 8 August 2026. Leva will cease to be legal tender after 31 January, after which they can still be exchanged for euros at banks.
With Bulgaria’s adoption of the euro, the word “EURO” will appear on euro banknotes in the Cyrillic script, complementing its Latin and Greek equivalents. The Bulgarian national sides of the new euro coins will depict the Madara Horseman (50 cents), Saint Ivan of Rila, patron saint of Bulgaria (1 euro), and St Paisius of Hilendar, a leading figure of Bulgarian national revival (2 euros).
Bulgaria is the poorest EU member state, with the lowest GDP per capita in the Union and low average wages, which amount to around 59% of the EU average. On the other hand, sound fiscal discipline, with a public debt at 28.5% of GDP and a budget deficit of 1.9% as of 2025, has allowed Bulgaria to fulfil the formal criteria for acceptance into the eurozone. In the same year, GDP expanded by 3% to 113 billion euros, in keeping with steady and sustained economic growth.
The transition to the euro has not been welcomed in all quarters. Older, conservative, and rural voters, who often harbour Eurosceptic and pro-Russian sympathies, fear higher inflation and increased political instability as the consequences of joining the euro. The Pro-Russian President Rumen Radev even sought unsuccessfully to challenge adoption of the euro by holding a referendum. For its supporters, joining the euro is expected to facilitate trade within the single market, attract investment, and promote financial stability.
The political situation in Bulgaria remains unsettled. Mass anti-government protests and rallies in Bulgarian cities, with strong Gen Z participation, forced the resignation of Prime Minister Rosen Zhelyakov, along with his coalition government, on 11 December 2025, just ahead of a vote on a no-confidence motion. Even the withdrawal of a controversial draft budget for 2026, which sought to increase taxes and social security contributions and to boost public-sector wages at the expense of spending on social programmes, did not placate the protesters, who were particularly concerned about widespread public-sector corruption-Bulgaria is currently the second most corrupt country in the EU, after Hungary. The government will stay on in a caretaker role until national elections in spring this year, which will be the eighth in four years. Early indications are that the lev-to-euro transition is progressing well. Much hard work is still required to improve matters in a deeply polarised nation, where Europhiles and Russophiles have different, mutually exclusive, visions for the future of Bulgaria.
Ashis Banerjee