Bulgaria Enters Eurozone as 21st Member After Midnight Currency Switch

Overview

• Bulgaria adopted the euro at midnight on 1 January, retiring the lev and becoming the 21st user of the common currency.
• Celebrations in Sofia marked the switch as the ECB signaled support in Frankfurt and EU leaders said the move will deliver practical benefits for citizens and businesses.
• The step follows formal EU approvals after ERM II entry in 2020, with inflation near 2.8%, a deficit around 3% of GDP and public debt about 24% meeting convergence rules.
• Domestic politics are unsettled after Prime Minister Rosen Zhelyazkov resigned on 11 December during mass protests over a contested budget, increasing the prospect of early elections.
• Public opinion is split and the government warned retailers against unjustified price hikes, reflecting inflation fears even as officials argue the euro will strengthen economic resilience.