Bulgaria’s Small Businesses Are Not Ready for the Euro Transition

Small businesses in Bulgaria are far from ready to fully embrace the euro, even though some major retail chains began showing prices in both lev and euro earlier this month. According to industry representatives, retailers will need at least half a year to adjust to the new currency rules, while restaurateurs are bracing for higher food and drink prices, which will ultimately push up costs for consumers.

“Retailers aren’t prepared yet. We have to meet the new rules, but it’s a process that takes time,” said Aksinia Baeva, deputy chair of the Bulgarian Retail Association, during an appearance on Bulgaria ON AIR.

Baeva outlined some of the challenges retailers face: “Currency conversion is more than just changing price tags. Fiscal receipts need updating, and the software systems must be adapted as well.”

Restaurants, meanwhile, are already working with dual currency menus, particularly for the upcoming winter season, said Richard Alibegov, chairman of the Bulgarian Association of Restaurants. Foreign tourists often prefer to pay in euros, so the industry has experience with the euro even before the official switch.

Both Baeva and Alibegov agree on the urgent need for a positive public information campaign to ease concerns about losing money value with the euro’s arrival.

“There’s a real fear about money losing value,” Alibegov said, worried about the public’s reaction, which he attributes to a lack of information. He stressed that both the pros and cons of adopting the euro must be communicated clearly.

While inflation is officially reported at 3%, Alibegov claims that actual price increases are much higher, pointing to rising rents and electricity costs. He was quick to clarify that the expected rise in food and drink prices starting in September is not linked to the euro, but rather to general inflation.

On a more optimistic note, Baeva suggested some prices could even drop after the euro is introduced. “Some products have fixed prices across Europe. Also, banks will release minimum reserves, freeing resources that can be redirected elsewhere,” she explained.

For now, both traders and restaurateurs await further clarity in the regulatory framework to plan their transition smoothly and with greater certainty.