Bulgaria’s First Eurozone Progress Report: A Success

On January 1st of 2026, Bulgaria officially adopted the euro, becoming the twenty-first member of the Eurozone and ending 145 years of lev usage. 

As a Bulgarian-American who visits Bulgaria regularly, I was immediately enthralled when I heard the news that Bulgaria had been approved to adopt the new currency back in July of 2025. Euro usage would surely help further integrate the nation into the European continent and promote its future development. Still, many Bulgarians expressed skepticism, and I have witnessed these concerns firsthand. Following the transition to the euro, many stores switched the currency without moving the numerical cost displayed accordingly. For instance, since the euro is nearly twice as valuable as the lev, goods that were previously worth 10 lev should in theory be 5 euro. Many businesses, however, have been found to participate in “upward rounding practices,” artificially increasing those prices. Moreover, Bulgaria’s departure from lev usage has sparked outrage from nationalists who affirm the currency’s importance to identity. Nevertheless, although the situation has prompted these pressing concerns, Bulgaria’s adoption of the euro remains the best decision for the country’s future.

First, the adoption of the euro has the potential to enhance Bulgaria’s economy through increased investment, trade, and financial integration across Europe. By sharing a common currency throughout the continent, Bulgarian businesses no longer face uncertainty with exchange rates and conversion costs. This greatly reduces financial barriers for companies, facilitating international transactions and encouraging economic growth. The European Commission estimates that a 3-5 percent increase in foreign direct investment (FDI) is expected to come as a result of these factors. Because foreign investment often brings new businesses, technology, and employment opportunities, even slight increases can have lasting effects on economic growth. Just a few months ago in April of 2026, Blackstone Inc., the world’s largest asset management company, announced a €250 million equity investment in Sunotec, a major solar and battery storage developer headquartered in the nation’s capital. Bulgarians are very likely to see continued investment by such companies which is very promising for the nation’s future generations.

Another sector that is likely to greatly benefit is tourism, as easier financial transactions will attract more visitors to Bulgaria. Miroslav Borshosh, Bulgaria’s Minister of Tourism, explains that the country will become a more accessible location for visitors, something that will be crucial for the development of the nation’s economy. With tourism already contributing to nearly 10% of the Bulgarian economy, the establishment of the euro will only further propel the sector through less travel friction for tourists. I have already witnessed these effects firsthand. Last summer, on my family’s cross-country drive to Bulgaria’s Black Sea, my cousin and I played a game to spot as many different foreign license plates as possible. In just a few hours, we spotted license plates from over twenty different countries, including ones nearly thirty hours away like Denmark, Germany, and France! Bulgaria’s beaches are beautiful, and tourists will likely continue to visit often following the nation’s currency adoption, in turn supplementing the economy as well.

A common concern Bulgarians initially held was that adopting the euro would significantly increase living costs. However, early economic data suggests that those concerns were largely overstated. Before the transition to the euro, critics argued that the currency switch would bring short-term inflation that would be detrimental to the nation. Since the euro is nearly twice as valuable as the lev, Bulgarians feared individual businesses would change the currency without lowering the numerical cost displayed, leading to more expensive goods. However, Bulgarian authorities have implemented measures to monitor prices, requiring businesses to display prices in euro and lev for a full year to prevent malpractice. When I visited Bulgaria this past summer, I didn’t notice any absurdly high prices compared to the previous summer. In fact, the numerical values of goods were almost always adjusted proportionally—meeting the prices I paid for the same goods in previous years. Early economic data largely supports my own experience. Despite some abnormally high price increases in January compared to previous years, prices have largely returned to normal. The inflation effect that many feared, therefore, has remained under control.

Critics also argued that abandoning the lev would be detrimental to national unity, but Bulgaria already gave up its monetary sovereignty nearly three decades ago with the establishment of the currency board. It is, of course, crucial to acknowledge the sentimental value of Bulgaria’s previous currency; originating from the Bulgarian word for a lion, the lev has persisted through generations—showcasing the country’s unique strength and sovereignty. However, Bulgaria isn’t just now deciding to part ways with the lev. With the establishment of the currency board in 1997, Bulgaria essentially “glued” the value of the euro to 1.95583 levs. Because of this, the lev’s value has fluctuated with the euro, and the Bulgarian National Bank has had limited ability to conduct its independent monetary policy. Unlike nations such as the United States which can adjust interest rates through the Federal Reserve, in turn regulating the economy, Bulgaria hasn’t had the power to independently adjust the lev’s value since the 90s. Bulgaria didn’t give up its monetary sovereignty in 2026; it gave it up in the midst of an economic crisis three decades ago.

Although Bulgaria’s currency switch has raised legitimate concerns, similar to many other countries who have done the same, the long-term benefits for Bulgaria’s future generation outweigh inflationary and national-identity based fears surrounding the transition. Rather than a break from Bulgaria’s past, the adoption of the euro is the next step toward an economically integrated and competitive future. The lev carries over a century of Bulgarian history, but as a Bulgarian-American looking toward the next one, I see the transition not as something Bulgaria is leaving behind, but rather a sign that the nation is ready to move forward.

Martin Mihaylov is a Bulgarian-American student with an interest in economics and international affairs. He regularly visits Bulgaria and is particularly interested in the country’s economic development and integration within Europe.