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The man wins the euro logo, crossed by red on the drum during a demonstration against Bulgaria, which was part of the eurozone to Sofia on May 31, 2025.
Nicholas Doykhinov | AFP | Gets the image
Last week, Bulgaria should become a 21st member of the Eurozone after receiving a retreat from the European Commission and the European Central Bank – but not everyone is convinced that this step is a good idea.
Bulgarian Prime Minister Rosen Zhelyaskov, a member of the right-wing Central GERB party, prioritized to join the Euro zone, claiming it will increase economic stability and growth.
However, fears of higher prices and loss of independence are stirring up that nationalist protests have caused protests against the European ascension. A recent European Union overview showed it Half of the Bulgarian population against the adoption of the euro.
Economists and experts weighing potential risks Bulgaria joins the euroTeating what can lose and get the country of Eastern Europe.
Inflation and interest rates
“The most immediate problem causes the price splash during the transition of currencies, as some businesses can gather prices. Many Bulgarians are worried that membership in the eurozone can ruin their purchasing power, especially in poor rural areas,” said CNBC Valentin Tatar, which covers Bulgaria.
However, he also noted that Bulgaria’s currency had long had a fixed rate on the euro, and therefore “transitional inflation should be soft.”
The second key problem is that it will refuse the currency of Bulgaria, Lev, will mean independence and sovereignty of the country – the ideals for which it became symbolic, according to Andrian Tours, advisers of Central and Eastern Europe in Tennea.
“Its replacement of the euro can be perceived by parts of the population as a loss of national control,” he said CNBC. In addition, there is concern about the refusal to control the monetary policy, as the ECB decisions are subjected to the ECB solutions.
For example, the Bulgarian National Bank (BNB) will no longer be responsible for establishing the country’s interest rates, based only on how its individual economy develops.
However, “eurozone countries enjoy lower interest rates from the ECB confidence and reduction of currency risk,” said the tour. Low interest rates tend to benefit borrowers as loans and mortgage loans become more affordable.
Economic stability and power
Joining the Euro zone and ensuring the ECB supervision can increase economic stability and growth prospects for Bulgaria, said CNBC Senior Economist in Allianz Se Jasmin Groeschl.
For example, foreign investments may increase, and the country’s gross domestic product will be increased in the eurozone.
“Bulgaria’s deeper financial integration will enhance the ECB’s financial system, increasing monetary stability,” Groshel explained. “The euro acceptance would strengthen Bulgaria’s connection with the EU, increasing its influence and authority,” she added.
The key areas at the heart of the economy, such as trade and tourism, can also be supported, said Tours Tennea.
Many key Bulgarian trading partners are in the EU, and most of its exports go to members of the 27th Bloc in 2023, according to data From the statistics of the country. The key sectors include machines and transport equipment, food and food products.
Meanwhile, tourism has become the main participant of the economy, as Bulgaria positions both summer and winter. More than 13 million foreigners visited the country in 2024, officially statistics Shown.
“Bulgaria’s accession to the eurozone will facilitate trade and tourist stream with other eurozone countries, eliminating the costs and loads related to currency transformation,” said the Trs, adding that it would be especially important from the strong Bulgarian integration into EU supplies.
Political tension
One of the risks indicated by economists and analysts is the political tensions related to the adoption of Bulgaria’s euro.
“Public counteraction to the euro has already caused noticeable protests, and in the medium term, this issue could become a key engine for the growth of populist and European political movements,” Tennea explained.
But despite local protests and concerns to honoring the eurozone, at least in the long run the benefits for the country exceed any negatives, Groshl Alian claimed.
“The compromise provides for the loss of economic autonomy in exchange for deeper integration,” she said. “Although Bulgaria will lose some monetary policy control and is subject to strict financial rules, the benefits of greater economic stability, reducing transaction costs and stronger integration with the EU market usually exceed these shortcomings.”
The Ing Tatar struck a similar tone, saying that since the lion had already been tied to the euro, there should be a significant shock.
“Entry into Euro is one of the most strategic steps that Bulgaria can take to ensure long-term prosperity and deeper European integration,” he said.
