Bulgaria will officially adopt the euro on January 1, 2026, following formal approval by European Union leaders. The move comes after the country met all euro convergence criteria, including inflation control, budget discipline, exchange rate stability, and legal compatibility with the EU monetary framework. In April 2025, Bulgaria’s average inflation fell to 2.7%, narrowly passing the 2.8% threshold required for entry.
The euro will replace the Bulgarian lev at a fixed exchange rate of 1 euro to 1.95583 leva, consistent with Bulgaria’s long-standing currency peg. Fitch Ratings responded to the approval by upgrading Bulgaria’s credit rating from BBB to BBB+, citing enhanced monetary stability and a stronger investment climate. Analysts expect euro adoption to eliminate currency risk, reduce transaction costs, and deepen Bulgaria’s integration with global capital markets.
EU Economy Commissioner Valdis Dombrovskis welcomed the decision, stating, “The euro brings a positive impact on growth thanks to full integration into the EU’s single market, where Bulgaria’s goods and services will become more competitive.” He added, “In the longer run, the euro brings more stable prices and increases the resilience of the economy in the face of sudden shocks.”
Despite official support, public sentiment remains divided. Recent polls show that 45% of Bulgarians support the change, while 53% are opposed, with concerns ranging from inflation to the loss of national monetary control. Nonetheless, Bulgaria maintains one of the EU’s lowest debt-to-GDP ratios at 24.1%, and has kept its budget deficit below the 3% eurozone limit, strengthening its macroeconomic case for accession.
The Bulgarian National Bank is now preparing for full integration into the European Central Bank system, while government officials emphasize the long-term economic and geopolitical benefits. With Bulgaria’s accession, the eurozone will expand to 21 members, reinforcing the EU’s cohesion and the euro’s role as a stabilizing force in Eastern Europe.
