Bulgaria: Calls to Present Prices in Leva and Euros as Euro Adoption Debate Continues

In just a week's time, Speaker of the National Assembly Natalia Kiselova expects the tension surrounding Bulgaria’s planned euro adoption to ease, as reported by BGNES. She emphasized that Vice President Iliana Yotova’s earlier comments do not reflect her own views, nor do they indicate any strain in her relationship with President Rumen Radev. Kiselova argued that while the government and the Bulgarian National Bank (BNB) have made significant strides in recent months, their efforts have not received sufficient public recognition. In her view, this gap is due to a lack of clear communication rather than a lack of progress.

Addressing public concerns, Kiselova noted that fears over price hikes are rooted in broader economic dynamics, not in the adoption of the euro itself. She called on traders to start displaying prices in both leva and euros, reinforcing the importance of transparency and clarity as the country prepares for this transition.

Regarding political dynamics, Kiselova commented on ongoing shifts within the Movement for Rights and Freedoms (DPS) parliamentary group, suggesting that more MPs might leave in the future. Despite these political undercurrents, she stressed that the National Assembly remains focused on its work, citing the consensus reached earlier in the day on the Republic of North Macedonia’s progress in EU accession.

Vice President Yotova: Authorities Failing to Enforce Euro Adoption Law

Vice President Iliana Yotova took a critical stance on the implementation of the Euro Adoption Law, which translates European rules for introducing the single currency into Bulgaria. Speaking to journalists in Mineralni Bani, Yotova pointed out that nine months after its adoption, responsible institutions are not fulfilling their obligations. According to her, the law requires officials to inform citizens in plain language about the euro’s benefits and risks, as well as Bulgaria’s stance in the eurozone, yet such communication has not been adequately carried out.

Yotova clarified that President Radev’s signing of the law last summer and his call for a referendum are unrelated actions. The law, she explained, is procedural and does not specify when the euro will be introduced, mirroring legislation passed in other eurozone countries. She argued that rather than launching an informative campaign, political parties and institutions have been more preoccupied with attacking President Radev’s referendum proposal, effectively sidelining the genuine debate that Bulgarian citizens need.

Citing the example of Bulgaria’s delayed Schengen accession despite fulfilling criteria back in 2011, Yotova emphasized that eurozone entry - like Schengen membership - is ultimately a political decision. She lamented the absence of serious engagement by the Ministry of Finance, the lead institution in charge of explaining the euro to citizens, and said that such a discussion could help alleviate public fears. In her view, failing to ensure citizens have the right to choose undermines democratic governance.

Petar Stoyanov: Euro Will Boost Living Standards, Not Cause Problems

Former President Petar Stoyanov, who served from 1997 to 2002, expressed optimism about Bulgaria’s future in the eurozone during a visit to Ruse, where he took part in a forum on euro adoption benefits. Stoyanov argued that adopting the euro will significantly improve living standards in Bulgaria. Any challenges that arise, he said, will be due to administrative inefficiency and corruption rather than the currency itself. In his view, better investment in infrastructure and honest governance would address most of the concerns that people currently have.

Economist Prof. Dr. Andrey Zahariev, also speaking at the forum, highlighted the advantages of joining the eurozone. One of the major benefits, he said, is that consumers will be able to easily compare prices with other eurozone countries, fostering competition and driving down costs. However, he warned that without proper oversight, there could be temporary price increases due to rounding practices. Zahariev also noted that adopting the euro would make travel within the eurozone simpler and cheaper by eliminating currency conversion costs.

For businesses, Zahariev emphasized that removing exchange rate risks and transaction fees will lower expenses and improve competitiveness, especially in foreign trade. According to estimates, these savings could amount to more than 1 billion leva annually for both businesses and citizens, boosting investor confidence in Bulgaria’s economy.

Zahariev pointed out that Croatia, often cited in these discussions, saw its credit rating upgraded just one year after adopting the euro in 2024. This, he said, gave Croatia better access to international loans on more favorable terms—a development he sees as a potential model for Bulgaria as it prepares for eurozone membership.

Bulgarian National Bank Governor Meets Kristalina Georgieva and Valdis Dombrovskis on Eurozone Progress

Bulgarian National Bank Governor Dimitar Radev took part in the international conference organized by the International Monetary Fund and the Croatian National Bank, held on May 29-30 in Dubrovnik. The event focused on the themes of growth and sustainability across Central, Eastern and Southeastern Europe.

During the conference, Governor Radev held meetings with IMF Managing Director Kristalina Georgieva and European Commissioner for Economy Valdis Dombrovskis. The discussions centered on Bulgaria’s progress in its preparations to join the eurozone and the anticipated benefits of the euro’s adoption for the country’s economy, incomes and business climate.

Radev received support from Georgieva and Dombrovskis, who affirmed Bulgaria’s efforts in this crucial area.