Bulgaria’s First Municipalities Introduce Dual Currency Pricing Ahead of Eurozone Entry

The municipal councils in Kozloduy and Krivodol have become the first in Bulgaria to implement dual pricing for municipal services, taxes, and fees. Following the Euro Adoption Act, which took effect in August 2024, the two municipalities have updated 15 ordinances to reflect prices in both leva and euro. However, the euro-based prices will only be valid once Bulgaria officially joins the eurozone.

The changes are designed to inform the public and prevent speculative pricing ahead of the currency switch, as explained by the local administrations. These moves align with the National Plan for the Introduction of the Euro, which emphasizes the important role municipalities play in the transition due to their involvement in a variety of public services.

The deadline for municipalities to review and amend their regulations is set for February 24, 2025, and these changes are expected to be finalized by the end of the month, alongside the adoption of municipal budgets.

We remind you that Parvomay Municipality became one of the first to implement euro-related changes as part of the country’s preparation for euro adoption. The local council has approved amendments aligning with the Euro Adoption Act, converting taxes, fees, and fines into euros across 17 ordinances. Mayor Nikolay Mitkov assured that the conversion would maintain the current value of services, with adjustments rounding values in favor of residents. While some locals expressed skepticism and concern about potential price hikes, others are more optimistic, believing that wage adjustments can prevent price increases. Meanwhile, Plovdiv Municipality is also preparing for the euro transition, with updates to regulations and systems expected to be completed soon.

Sources:

• BNR
• BNT