From Levs to Euros: Separating Truth from Fiction in Bulgaria’s 2026 Eurozone Transition

As Bulgaria moves steadily toward joining the eurozone on January 1, 2026, following unanimous support from eurozone finance ministers and heads of state in June 2025, waves of disinformation continue to circulate. Misleading narratives, ranging from economic panic to conspiracy theories, are spreading across social networks, forums, and even some media channels. The Bulgarian National Radio's fact-checking team examined several of the most common claims, offering clarity and facts based on expert analysis and official statements.

Claim: Prices will soar after adopting the euro

This is one of the most widespread fears - yet it does not reflect reality. Prime Minister Rosen Zhelyazkov, speaking on May 20, clarified that the observed price increases in recent months have nothing to do with the euro's introduction. Instead, market pressures and opportunistic pricing by certain traders are to blame.

Rumen Spetsov, head of the National Revenue Agency, echoed this view, stating that attempts to manipulate prices during the transition will be closely monitored. The government has put mechanisms in place to curb unjustified increases.

Economist Professor Viktor Yotsov points out that much of the public confusion arises from a misunderstanding of inflation. "High prices do not equal inflation. Inflation is an ongoing process of price increases," he explained. Many citizens, especially those with lower purchasing power, assume the euro will fuel inflation simply because they fear their incomes won’t stretch far enough.

Yotsov also emphasized the role of inflationary expectations: the more people believe that prices will rise, the more likely that belief influences economic behavior. Yet, the currency transition itself is not a trigger for inflation. "If a trader wants to raise prices, they won’t wait for the euro to do so. Competition, not state controls, keeps prices in check," he said.

Furthermore, Bulgaria’s price levels are still significantly below the EU average, currently at 60-70%. Some long-term price convergence is expected, but it is unrelated to the adoption of the euro and would happen even if Bulgaria retained the lev.

Claim: Exchanging levs for euros will be complicated or restricted

Years of preparation have ensured a smooth currency exchange process, according to Bulgarian National Bank (BNB) Governor Dimitar Radev. There will be a one-month period after the euro’s introduction during which both currencies will be accepted for payments. Change will be returned in euros when possible, and dual pricing will be displayed on receipts.

For the first six months, banks will exchange levs for euros free of charge and without limit, though large amounts (over 30,000 levs) will require advance notice. In smaller towns and villages, over 2,000 post offices will also facilitate free exchanges, explained Bulgarian Posts deputy director Stanimir Belinov.

Professor Yotsov noted that the exchange will take place through several channels: banks, post offices, and major retail chains, which will be pre-stocked with euro cash. Automatic conversions of wages, pensions, savings, and loans will occur at the fixed exchange rate. He foresees no difficulties.

Interior Minister Daniel Mitov confirmed that his ministry is taking steps to prevent fraud and criminal activity linked to the currency switch, including monitoring online spaces for fake news and counterfeit euro operations.

Claim: Bulgaria will lose its monetary sovereignty

Critics argue that euro adoption will rob Bulgaria of its sovereignty, but monetary independence has already been largely relinquished under the current currency board arrangement. Since 1997, the lev has been pegged first to the German mark, then to the euro, leaving the BNB unable to conduct independent monetary policy.

As Professor Yotsov explained, the central bank has long lacked tools like open-market operations, the ability to influence interest rates, or provide emergency liquidity. "We’ve already surrendered that part of our sovereignty. The lev exists, but it’s fully tied to the euro, and the BNB can’t control the money supply independently," he said.

Claim: The ECB will take over Bulgaria’s foreign exchange reserves

This claim is also inaccurate. Professor Yotsov clarified that only a portion of Bulgaria’s reserves will be pooled into the collective reserve managed by the European Central Bank. The majority will remain under national control.

Additionally, many of the funds currently held by the BNB belong to commercial banks as part of their mandatory reserves, currently set at 12% in Bulgaria. In the eurozone, the requirement is just 1%. Upon joining, these funds will be returned to the banks that deposited them, reducing the BNB's balance sheet but without negative implications for the economy.

Given that more than 80% of Bulgaria's banking sector is foreign-owned, much of the returned capital may go back to parent banks in Western Europe. This transition is expected to be neutral in terms of inflation.

Claim: Bulgaria will be forced to pay other countries' debts

No such mechanism exists within the European Union or the eurozone. This narrative gained traction around 2020, but has repeatedly been debunked by legal experts and economists. The treaties governing the eurozone do not mandate any member to assume the debts of another.

Former rector of the Higher School of Insurance and Finance, Grigoriy Vazov, called the idea "absurd," noting that any such arrangements would have to be based on bilateral agreements, which are not part of EU frameworks.

Claim: The digital euro will be used to track citizens

Misinformation campaigns have tried to frame the digital euro as a surveillance tool. In fact, the European Central Bank has consistently emphasized privacy as a cornerstone of the project.

According to the ECB, payment data will remain between payer and recipient. No personal data will be stored or shared with third parties except when legally required to prevent crime. The digital euro, currently in a preparatory phase, will not be introduced before the end of 2025 or 2026. If approved, it will offer consumers more choice and maintain a high standard of privacy.

A May 2025 report by "Evranet Plus" further exposed the scale of disinformation targeting the digital euro, reinforcing the ECB's pledge to safeguard user data and limit central oversight to what is legally necessary.

Source: BNR