Bulgaria’s Transition to the Eurozone: Prices Will Be Listed in Leva and Euros One Month After Green Light

A month after Bulgaria receives approval to join the eurozone, all traders are required to display prices in both leva and euros, Deputy Minister of Economy Nikolay Pavlov explained in an interview with BNR. He clarified that the currency conversion must strictly adhere to the fixed exchange rate of 1.95583 leva per euro. On the labels of goods and services, prices must be presented clearly, without giving preference to one currency over the other.

The target date for introducing the euro is January 1 of the following year. Expectations are that by summer, there will be confirmation on whether Bulgaria will meet this deadline. Pavlov emphasized that the Ministry of Economy and Industry plays a major role in the preparatory process and actively participates in the Coordination Council for Preparation. Traders’ obligations are set out in the Law on the Introduction of the Euro. The dual price display will continue for 12 months after the euro’s adoption. Pavlov urged businesses not to rush with listing prices in euros prematurely and assured that the state will ensure the law’s requirements are met through strict controls. He also stressed that adopting the euro itself will not cause inflation, and targeted inspections will monitor for unfair practices.

Trust and Doubt Surrounding the Euro

While awaiting the European Commission and European Central Bank’s assessments on Bulgaria’s readiness for the eurozone, the country is experiencing a surge in speculation. Victoria Spasova from Factcheck.bg addressed one of the most circulated myths on BNR, namely, that the European Union plans to seize citizens’ savings. Recently, rumors even suggested that only individuals opposing the euro's adoption would be targeted.

There is no basis for fears about citizens’ savings having an "expiration date." The false claims stem from a misinterpretation of a statement by Commission President Ursula von der Leyen regarding the launch of the Savings and Investment Union. The initiative, previously known as the Capital Markets Union, aims to encourage citizens to better manage their savings, promoting investment in capital markets instead of keeping funds solely in bank deposits. Although capital markets carry higher risk, they can offer better returns. Currently, approximately 10 trillion euros are kept in low-yield deposits across Europe.

The Savings and Investment Union seeks to educate and inform citizens about investment opportunities. Participation is entirely voluntary, and member states are free to determine how to promote these initiatives. No new regulation gives European institutions access to private bank accounts or savings. Citizens' deposits remain private property, protected by national laws and constitutions. No European institution, including the European Commission or the European Central Bank, can access individual accounts or personal data.

Transition of Cash and the Concept of a Digital Euro

Upon Bulgaria’s entry into the eurozone, there will be established deadlines for exchanging cash leva for euros. People will need to declare and convert their leva holdings because, after a certain period, leva will no longer be accepted for transactions in stores or services.

The European Central Bank is also advancing the idea of a digital euro, aimed at facilitating online payments across the continent. This project intends to provide an alternative to major American financial platforms currently dominating the online payments space. The digital euro would offer enhanced personal data protection, with an electronic wallet for secure transactions, both online and offline.

Offline payments would remain private between the two parties involved, without the Eurosystem having access to the data. For online payments, safeguards would prevent linking transactions to individuals, ensuring personal data remains protected. The digital euro is still in its experimental phase, with active discussions about its development and accessibility.

Users would be able to transfer money into a digital wallet without incurring fees. To avoid destabilizing the banking system by mass withdrawals, a cap on digital euro wallet balances is being considered, currently set at 3,000 euros. This measure aims to balance security, convenience, and financial stability.