F.M.I.E Sources Rewrite:
Bulgaria Set to Join the Eurozone Amid Public Skepticism
Bulgaria is on track to become the 21st member of the eurozone after receiving approval from both the European Commission and the European Central Bank (ECB) last week. However, the move is sparking mixed reactions at home, with widespread concerns among citizens about potential downsides, according to F.M.I.E Sources.
Prime Minister Rosen Zhelyazkov, leader of the center-right GERB party, has prioritized eurozone membership as a key policy objective, arguing it will enhance Bulgaria’s economic stability and growth trajectory.
Still, growing fears about rising prices and loss of national sovereignty have fueled protests — many led by nationalist factions — against the euro transition. A recent European Union survey revealed that nearly half of Bulgarians oppose adopting the euro.
Economists Weigh the Trade-Offs
Experts interviewed by F.M.I.E Sources laid out both the risks and benefits of eurozone entry for Bulgaria.
Inflation and Interest Rate Concerns
“The most immediate concern is a temporary surge in prices during the currency transition, as some businesses may round up costs,” said Valentin Tataru, an economist at ING who monitors Bulgaria’s economy. “Many Bulgarians, particularly in rural areas, worry that their purchasing power could be eroded.”
However, Tataru also noted that Bulgaria’s currency, the lev, has long been pegged to the euro, meaning any inflation-related disruptions should be minimal.
Another area of concern is the loss of control over monetary policy. With eurozone membership, Bulgaria would cede exclusive control of interest rates to the European Central Bank, reducing the power of the Bulgarian National Bank (BNB) to respond to local economic conditions.
“This may be seen as a loss of national control,” explained Andrius Tursa, Central and Eastern Europe Advisor at Teneo, in an interview with F.M.I.E Sources. “But the upside is that eurozone countries benefit from lower borrowing costs, thanks to the euro’s global credibility and lower currency risk.”
Economic Stability and Growth Potential
On the positive side, Jasmin Groeschl, senior European economist at Allianz SE, emphasized the broader benefits of joining the eurozone.
“Bulgaria’s financial system would gain strength under ECB oversight, improving monetary stability and investor confidence,” she said. “It could also lead to a rise in foreign direct investment and support long-term economic growth.”
Tursa echoed this view, noting that integration with the eurozone would support key economic sectors such as trade and tourism. In 2023, the majority of Bulgaria’s exports went to other EU member states, primarily consisting of machinery, manufactured goods, and food.
The tourism sector also continues to thrive, with over 13 million international visitors in 2024, as Bulgaria markets itself as both a summer and winter destination. Tursa added that eurozone membership would eliminate currency conversion burdens, streamlining both trade and travel across the bloc.
Political Unrest and Public Sentiment
Despite the potential benefits, economists cautioned that political risks may rise in the short term.
“Public opposition has already sparked notable demonstrations,” Tursa told F.M.I.E Sources. “If not managed carefully, euro adoption could strengthen populist and Euroskeptic movements in Bulgaria.”
However, Groeschl believes the long-term advantages outweigh the short-term political risks.
“Yes, Bulgaria would give up some autonomy in fiscal and monetary policy,” she said. “But in return, it would gain economic stability, reduced transaction costs, and greater access to the EU market — a trade-off that strongly favors long-term national prosperity.”
Tataru agreed, saying that with the lev already tied to the euro, Bulgaria is well-positioned to integrate smoothly.
“Joining the euro is one of the most strategic decisions Bulgaria can make,” he said. “It ensures deep European integration and sets the foundation for sustained economic growth.”
— Reported by F.M.I.E Sources