Bulgaria to become 21st country to adopt euro as official currency

The historic milestone arrives amid political instability and skepticism among ordinary people fueled by fears of prices rising in the eastern European country.

On New Year’s Day, Bulgaria becomes the 21st country to join the euro currency union, furthering its integration into the European Union. But the historic milestone arrives amid political instability and skepticism among ordinary people fueled by fears of price rises.

Supporters of switching to the euro from the old currency, the lev, are praising the move as one of the greatest achievements since the 1989 transition from a Soviet-style economy to democracy and free markets. They hope it will make the country more attractive for investors and strengthen its orientation toward wealthier Western Europe.

But many people are uneasy, in a country where corruption is rife and trust in the authorities is low. One fear is that merchants will round prices up or otherwise use the changeover to worsen inflation, at a time when inflation has rebounded to 3.7%.

An EU Eurobarometer poll from March showed that 53% of 1,017 people surveyed opposed joining the eurozone, while 45% were in favor. A separate Eurobarometer poll, taken between Oct. 9 and Nov. 3 on a similar sample, showed that about half of Bulgarians opposed the single currency while 42% were in favor. The margin of error was about plus or minus 3.1 percentage points for the March poll.

The government successfully completed the euro adoption process by beating inflation down to 2.7% earlier this year to comply with EU rules and win approval from EU leaders. But clearing that hurdle was followed by a new chapter of political chaos. The government resigned after less than a year in office amid nationwide anti-corruption protests. This left the country without a regular budget for next year and is hampering plans for long-overdue structural reforms and decisions on use of EU support funds.

A new election — the eighth in five years — is expected to be held next spring.

Nevelin Petrov, 64, said he welcomed the euro. “Bulgaria is a full member of the European Union, and its rightful place is alongside the other developed and democratic European nations,” he said. “I am convinced that the adoption of the euro will contribute to the long-term prosperity of our country,” he said.

Others, like Darina Vitova, who runs a pedicure salon in Sofia, said things were moving too fast although she welcomed the change “in principle.”