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Bulgaria became the 21st country to adopt the euro as it entered the New Year on Thursday, marking a milestone nearly 20 years after the Balkan nation joined the European Union.
At midnight (2200 GMT Wednesday), Bulgaria replaced the lev, its national currency since the late 19th century, with the euro. Images of Bulgarian euro coins were projected onto the central bank building as the changeover took effect.
Successive governments in the country of about 6.4 million people have backed euro adoption, arguing it would strengthen the economy of the European Union’s poorest member, deepen ties with the West and reduce Russia’s influence.
But the move has long divided public opinion, with many Bulgarians fearing higher prices and additional political instability.
In a speech broadcast shortly before midnight, President Rumen Radev described euro adoption as the “final step” in Bulgaria’s integration into the European Union, as thousands gathered in sub-zero temperatures in the capital, Sofia, to welcome the New Year.
Radev, however, criticized the absence of a referendum on the issue.
“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,” he said.
Anti-corruption protests toppled a conservative-led government in mid-December, leaving Bulgaria facing its eighth election in five years and adding to public anxiety over inflation.
“People are afraid that prices will rise, while salaries will remain the same,” a woman in her 40s told AFP in Sofia, declining to give her name.
At one of the city’s largest markets, vendors displayed prices in both levs and euros for goods ranging from groceries to New Year’s Eve items such as sparklers.
“The whole of Europe has managed with the euro, we’ll manage too,” retiree Vlad told AFP.
European Commission President Ursula von der Leyen said Wednesday that Bulgaria’s entry into the eurozone marked “an important milestone” that would bring “practical benefits.”
“It will make travelling and living abroad easier, boost the transparency and competitiveness of markets, and facilitate trade,” she said.
Central bank Governor Dimitar Radev said the euro represented more than “just a currency,” calling it “a sign of belonging.”
Still, skepticism remains widespread. According to the latest Eurobarometer survey, 49% of Bulgarians oppose adopting the euro.
Outgoing Prime Minister Rossen Jeliazkov sought to reassure the public, saying he was “counting on the tolerance and understanding of citizens and businesses,” and insisted inflation was not linked to the euro’s introduction.
Concerns about rising prices persist. Food prices increased 5% year-on-year in November, more than double the eurozone average, according to the National Statistical Institute.
“Unfortunately, prices no longer correspond to those in levs,” pastry shop owner Turgut Ismail, 33, told AFP, saying prices had already begun to rise.
A protest campaign earlier this year tapping into negative views of the single currency also amplified fears of price hikes.
Analysts warn that any problems with the transition could be exploited by anti-EU politicians, given Bulgaria’s ongoing political instability.
Some business owners have complained about difficulties obtaining euros, saying they had not received starter packs ordered in advance. Banks cautioned that cash machines could experience temporary disruptions during the switch.
Earlier this week, people queued outside the Bulgarian National Bank and currency exchange offices in Sofia to obtain euros.
The euro was first introduced in 12 countries on Jan. 1, 2002. Croatia was the most recent member to join, in 2023.
With Bulgaria’s accession, more than 350 million people across Europe now use the single currency.
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