Bulgaria adopts the Euro in 2026, becoming the 21st member of the Eurozone

Bulgaria becomes the 21st country to ditch the national currency, the Bulgarian lev, to the euro as its legal tender on January 1, 2026, marking a pivotal moment in its integration with the European Union. The lev remains the legal tender in January until February 1, when the euro will become the sole official currency. The displays (lev and euro) will continue until August 2026. Until now, only six countries in the 27-member EU still use their own currencies: The Czech Republic, Denmark, Hungary, Poland, Romania and Sweden.

Why is it significant?

Bulgaria became a member of the European Union on January 1, 2007. Now, 19 years after its political integration, this financial integration can be interpreted as a geopolitical and ideological signal to Russia at a volatile moment. The euro is "not just a currency but a strategic choice", said the Bulgarian Prime Minister Rosen Zhelyazkov in November. He added that it strengthens Bulgaria's position in Europe.

Bulgaria's past was tied to the Eastern Bloc in terms of the USSR's sphere of influence. Bulgaria's communist regime was entirely in sync with the East's leader in Moscow and was also a member of the Warsaw Pact and COMECON. At the end of the 80s, the USSR was engaged with problems from stagnation in the economy and opposition from the West in politics. Mikhail Gorbachev chose to abandon the Brezhnev Doctrine and show unwillingness to intervene by force to maintain the communist government in Bulgaria in power, and the result was a politically unstable nation. Centralised planning failed to adapt, and capitalist ideology swept in, making the Soviet model of economy obsolete. It propagated that liberal democracy was the natural endpoint of history.

How is Bulgaria performing?

However, political volatility still remains in Bulgaria; it has already held seven parliamentary elections since 2021. Bulgaria is amongst the poorest and most corrupt countries in the Eurozone. On December 11, Bulgarian Prime Minister Rosen Zhelyazkov resigned following mass protests against the 2026 budget and corruption allegations.

Citizens are split about the Eurozone Accession between the pro-EU and Eurosceptic groups. Around 46.8 per cent of Bulgarians opposed the euro adoption, and 46.5 per cent supported it. Opponents argue that these will end the national identity, Bulgaria will remain at the periphery of the European Union and make it susceptible to economic shock. Supporters suggest that these will include them in the rich club and improve their living standard.

"For such fundamental projects, the government of any democratic country takes into account the opinion of the public," Rossitsa Rangelova, professor at the Bulgarian Academy of Sciences'Economic Research Institute, told DW, noting that "the Bulgarian authorities have categorically rejected referendums as a form of public opinion over the years and still find ways to ignore them."

The Balkan country of 6.4 million people estimates a 3 per cent GDP growth by the end of 2025 and subsequently 2.7 per cent and 2.1 per cent in 2026 and 2027, respectively. The country has a sovereign debt-to-GDP ratio at about 26.3 per cent by Q2FY25, still among the lowest in the bloc, whereas the average sovereign debt for the EU is from 81-88 per cent, specifically owing to high debt countries like Greece, Italy, France, Belgium and Spain.