From 1 January 2026, Bulgaria will officially adopt the euro, becoming the 21st member state of theeuro area. The decision was formally approved by the Council of the European Union already in July, with the setting of conversion rate irrevocable between the national currency and the single currency: 1 euro for 1.95583 levs.
Entry into the eurozone represents a historic step for the country, but comes in a complex internal context. Many fear theprice increaseso much so that half of the population said they were against the entry of the Euro.
When will the euro enter Bulgaria?
Dal January 1, 2026 Bulgaria will start using the euro. The final approval for the adoption of the euro came after years of preparation. Bulgaria had joined the European Exchange Rate Arrangements (AEC II) on 10 July 2020, but remained in the. “waiting room” of the euro together with Croatia. Since then, the lev has remained pegged to the euro at 1.95583, the same rate that will be applied from January 1, 2026.
Prior to entry, from 2020, Bulgarian banks were subjected to vigilance directly by the European Central Bank within the Single Supervisory Mechanism.
What will change for the better: the ECB’s position
For the ECB, Bulgaria’s adoption of the euro represents an economic and political opportunity. In a note released in recent months, Frankfurt defined entry into the eurozone as “a historic achievement”, underlining how the transition can guarantee greater economic stabilitybetter operations for businesses and citizens and stronger European integration.
The ECB also assured that, together with national authorities, detailed planning work is underway to ensure a smooth transition, with particular attention to price stability, one of the main public fears.
Fears about inflation
Entry into the euro does not convince a significant part of the population. Second Eurobarometeralmost 1 in 2 Bulgarians (49%) would have preferred to keep the lev. The fear is the increase in the cost of living. Data from the national statistical institute indicate that in November consumer prices grew by 5% on an annual basis, while the average salary is just over 1,200 euros per month.
The main fear therefore concerns a possible price effect linked to the currency exchange, even if the European Central Bank has repeatedly downsized the expected impact. President Christine Lagarde spoke of modest and temporary increases, estimated between 0.2% and 0.4%, while underlining the benefits.
The companies are satisfied, according to which i trades they will be more fluid, with lower financing costs and more stable prices. Annual savings have been estimated at approximately 500 million euros between exchange commissions for businesses and a possible boost to tourism. This alone is expected to grow, with a value of around 8% of GDP.
