Bulgarian President Radev Warns of Social Risks and 'Price Shock' from Eurozone Transition

President Rumen Radev once again declined to clearly express his support or opposition to the adoption of the euro in Bulgaria. Instead, he emphasized the concern shared by some pro-Russian political groups that introducing the euro would trigger significant price increases, especially in the months before the currency changeover.

He pointed out that although the government talks about protective measures after the euro's adoption, real-world examples from other countries suggest otherwise. According to Radev, countries that recently joined the eurozone experienced marked price jumps in the lead-up to adopting the new currency. He expressed hope that Bulgaria would avoid a similar scenario.

Yet, historical data from Croatia, Lithuania, Latvia, and Slovakia shows that the price impact of adopting the euro was moderate - a small, one-time spike in inflation of around 0.2-0.4%, mainly in services and frequently purchased goods. Overall inflation remained in check, and these countries also saw an increase in income levels. Although there is always a chance of speculation and unjustified price hikes, institutions are tasked with monitoring and preventing such practices.

Radev shifted the focus to the government, claiming it bears political responsibility for pushing forward the request for a convergence report to the European Commission. He argued that the authorities are only concerned with technical preparation - like getting banks and post offices ready for the change - and not with addressing potential social fallout.

He also said that his referendum proposal, which was rejected by the National Assembly speaker and is now before the Constitutional Court, is not meant to oppose the euro itself. Instead, it aims to highlight what he views as institutional weaknesses and neglect.

Radev warned that there are no visible measures to cushion the blow of possible price hikes, and he criticized the government for not building financial buffers or contingency plans when passing the budget. In his view, this leaves ordinary Bulgarians to fend for themselves if price shocks do occur.

He called on the public to stay vigilant and watch for unjustified price hikes, insisting that there is a real risk of social fragmentation in the rush to integrate into the eurozone. Radev urged that protective measures should be put in place immediately - not sometime after the euro is adopted - warning that otherwise, Bulgaria could end up splitting into two economic tiers.