Bulgaria shows even citizens of small nations reject the euro
Bulgaria is slated to be the newest member of the Eurozone. The European Commission and European Central Bank (ECB) released statements today that effectively confirmed Bulgaria's adoption of the euro on January 1 2026. Bulgaria's entry extends the currency bloc from 20 to 21 members and builds on the nation's 2007 decision to abandon the lev as its official currency; the year it joined the EU.
Bulgaria's adoption of the euro reflects its ability to overcome problematic economic indicators. Bulgaria was initially expected to become a Eurozone member in 2024, but its 9.5 per cent inflation rate scuppered these aspirations.
Bulgaria's harmonisation with ECB policies is expected to lower its inflation rate to 1.8 per cent by 2026 and ensure its alignment with the EU's price stability criteria. Bulgaria's debt-to-GDP ratio has declined since 1998 and stands at just 24.1 per cent.
While Bulgaria's ability to transcend demographic decline and political dysfunction to meet the EU's criteria appears inspiring, there is a darker side to the story.
Bulgaria's adoption of the euro overrules public opinion and underscores the sovereignty concerns that the EU's smaller member states have about the bloc's supranational authority.
Despite projections of a 5.8 per cent increase in Bulgaria's exports after it joins the euro, opposition to the common currency is fierce. A recent Eurobarometer survey revealed that 50 per cent of Bulgarians reject the euro and only 43 per cent are in favour of it.
Bulgarian pensioners fear that pricing goods in euros will erode their life savings and their younger counterparts share their concerns about a loss of independence.
Incoming Polish president Karol Nawrocki's sovereignty-based opposition to swapping the zloty for the euro resonates strongly in Bulgaria.
The disconnect between elite decision-making and public opinion on the euro has threatened political cohesion by galvanising pro-Russian populist movements. Varazhdane Party leader Kostadin Kostadinov, who recently signed a cooperation agreement with president Vladimir Putin's United Russia Party, has capitalised on anti-euro sentiments and rallied thousands of like-minded Bulgarians on the streets of Sofia.
As Bulgaria has had seven parliamentary elections since 2021 and lacks the ability to form a durably stable government, this dispute has serious destabilising potential.
The COVID-19 pandemic underscored the potential for anti-vaccination disinformation to spread widely in Bulgaria and the euro's adoption over the public's will could further erode trust.
While EU officials celebrate Bulgaria's milestone acceptance of a common currency, the mood in Sofia is much more sombre and apprehensive. This is yet another reminder of the growing discontent between Brussels and the European street.
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