Bulgaria’s Transition to the Euro: Timelines, Changes, and Updates

Bulgaria’s transition to the euro is a topic of great interest and ongoing debate among locals and politicians. This reform holds tremendous significance for the country, aiming to deepen integration into the European community, bring a more European way of life, and take a step toward stability.

In this article, we’ll explore the euro adoption timeline, the criteria for integration into the eurozone, local attitudes toward the new currency, and the changes this reform might bring.

Dates and Developments

Bulgaria plans to switch to the euro, but the exact date has not yet been finalized. Key conditions for joining the eurozone involve compliance with the Maastricht criteria.

What Are the Maastricht Criteria?
The Maastricht criteria are a set of economic conditions that EU countries must meet to join the eurozone and adopt the euro as their official currency. These criteria were established in 1992 under the Maastricht Treaty:

1. Price Stability: A country’s inflation rate should not exceed more than 1.5% above the average rate of the three EU countries with the lowest inflation.
2. Government Debt: Public debt must not exceed 60% of GDP, and the budget deficit must not exceed 3%.
3. Currency Stability: A stable exchange rate of the national currency against the euro must be maintained for two years before joining, without devaluation.
4. Long-Term Interest Rates: These rates must not exceed more than 2% above the average rate of the three EU countries with the lowest inflation.
5. Exchange Rate Mechanism Participation: Active participation in ERM II for at least two years before joining the eurozone, with no significant exchange rate fluctuations.

Initially, Bulgaria planned to introduce the euro on January 1, 2024. However, this date was postponed due to economic and political challenges, including high inflation rates. The government is now considering January 1, 2025, as a potential adoption date, although Bulgarian sources suggest January 1, 2026, may be a more realistic target. Bulgaria is expected to maintain a fixed exchange rate for the lev, adhering to one of the key Maastricht criteria.

Why Isn’t Bulgaria in the Eurozone Yet?

The primary obstacle is Bulgaria’s high inflation rate, which prevents the country from adopting the euro. During the tourist season, prices tend to increase due to the influx of visitors, as tourism generates significant revenue for Bulgaria. To join the eurozone, Bulgaria’s inflation rate must remain stable and not exceed 1.5% above the average inflation rate of the three EU countries with the lowest rates. In 2023, Bulgaria’s inflation hovered around 10%, while the acceptable rate is closer to 3–4%.

The “Euro” or “Evro” Debate

An interesting aspect of Bulgaria’s euro transition lies in the debate surrounding the translation of the term “euro” into Bulgarian.
The European Central Bank (ECB) insisted that the currency name in Bulgarian should be spelled “euro.”
Bulgaria argued for the spelling “evro,” citing its inclusion in Bulgaria’s EU Accession Treaty, signed by all EU member states.

The dispute lasted nearly a year. The ECB continued using “euro” in official publications, while the Bulgarian National Bank (BNB) and other institutions adhered to “evro.”

Coin Designs

On July 24, 2023, Dimitar Radev, Governor of the BNB, announced that the designs used on Bulgarian euro coins would match those on Bulgarian stotinki coins.

• 2 Euros: Paisiy Hilendarski, historian and author of a significant work on Bulgarian statehood.
• 1 Euro: Saint Ivan Rilski, a revered Bulgarian patron saint.
• 50, 20, 10, 5, 2, and 1 cents: The Madara Rider, a famous Bulgarian archaeological site.

This reflects Bulgaria’s desire to preserve national symbols and cultural heritage on its new currency.

Which Countries Will Remain Outside the Eurozone?

After Bulgaria adopts the euro, six EU countries will remain outside the eurozone:

• Poland
• Czech Republic
• Romania
• Hungary
• Sweden
• Denmark

Public Opinion in Bulgaria

Public opinion on the euro introduction in Bulgaria is notably mixed. Many people are concerned about price increases, particularly for everyday goods, with approximately 55% of Bulgarians expressing worry or opposition.

However, supporters—especially younger individuals and business owners—view the change positively. They believe switching from the lev to the euro will simplify international transactions and enhance the stability and reliability of Bulgaria’s financial system.

Expected Price Increase for Real Estate

Based on the experience of other countries that adopted the euro, prices for everyday goods are likely to rise first, followed by construction materials. The cost of newly built housing is expected to increase, subsequently pushing up prices for secondary housing. These price adjustments will likely round upward.

If you are interested in EU real estate, we can offer tours with down payments starting at €10,000 for apartments priced at €50,000 or more.