The country faces unique challenges, including anti-corruption protests that recently swept a conservative-led government from office.
Bulgaria will become the 21st country to adopt the euro on Thursday, but some believe the move could bring higher prices and add to instability in the European Union’s poorest country, where the government recently resigned after mass protests.
But successive governments have pushed to join the eurozone and supporters insist it will boost the economy, reinforce ties to the West and protect against Russia’s influence.
“The euro is a tangible symbol of European strength and unity,” European Commission president Ursula von der Leyen said as the EU executive concluded that Bulgaria was ready to adopt the currency in 2026.
Joining the euro area would strengthen Bulgaria’s economy through deeper trade ties with eurozone partners, higher foreign investment and easier access to finance, she added, arguing that the move would ultimately support job creation and real incomes.
The single currency first rolled out in 12 countries on January 1, 2002, and has since regularly extended its influence, with Croatia the last country to join in 2023.
But Bulgaria faces unique challenges, including anti-corruption protests that recently swept a conservative-led government from office, leaving the country on the verge of its eighth election in five years.
Boryana Dimitrova of the Alpha Research polling institute, which has tracked public opinion on the euro for a year, told AFP any problems with euro adoption would be seized on by anti-EU politicians.
Any issues will become “part of the political campaign, which creates a basis for rhetoric directed against the EU”, she said.
While far-right and pro-Russia parties have been behind several anti-euro protests, many people, especially in poor rural areas, worry about the new currency.
The Bulgarian government resigned earlier this month after protests drew tens of thousands onto the streets of the capital, Sofia. While the resignation was not directly linked to the country’s plans to adopt the euro, public unease has been heightened by concerns over potential price rises.
The latest survey by the EU’s polling agency Eurobarometer suggested 49% of Bulgarians were against the single currency.
President of European Central Bank, Christine Lagarde predicted the impact on consumer prices would be “modest and short-lived”, saying in earlier euro changeovers, the impact was between 0.2 and 0.4 percentage points.
But consumers – already struggling with inflation – fear they will not be able to make ends meet, according to Dimitrova.
Food prices in November were up five percent year-on-year, according to the National Statistical Institute, more than double the eurozone average.
Parliament this year adopted empowered oversight bodies to investigate sharp price hikes and curb “unjustified” surges linked to the euro changeover.
But analysts fear wider political uncertainty risks delaying much needed anti-corruption reforms, which could have a knock-on effect on the wider economy.
“The challenge will be to have a stable government for at least one to two years, so we can fully reap the benefits of joining the euro area,” Angelov said.
With Bulgaria in, only six EU countries — Denmark, Sweden, Poland, the Czech Republic, Hungary and Romania — still retain their own currencies. Of those, Romania is the only country with plans to adopt the euro.