Fiscal Council: Bulgaria’s Adoption of the Euro Proceeding Without Major Issues

Bulgaria’s transition to the euro is proceeding smoothly, marking a major step in the country’s full integration into the European Union, according to an analysis by the Fiscal Council. The Council notes that the adoption of the single currency benefits from particularly favorable conditions. Bulgaria’s long-standing currency board and fixed exchange rate have minimized the usual risks associated with monetary policy shifts and currency fluctuations, setting the country apart from nations with floating exchange rates. In addition, Bulgaria enters the eurozone with one of the EU’s lowest government debt levels, placing it in a strong fiscal position compared with many newer euro area members. The successful transition is also the result of extensive preparation by the Bulgarian National Bank, commercial banks, retail chains, and key institutions, which coordinated closely to ensure a smooth technical and organizational rollout.

In the first weeks of 2026, the dual circulation period for levs and euros has started without major issues. Citizens and businesses can make payments in either currency until January 31, and merchants are required to accept levs without restriction. By January 1, over 96% of ATMs were dispensing euro banknotes, with the remaining machines scheduled for reconfiguration within one to two weeks. Coin and banknote exchange is progressing according to plan: by January 16, around 60% of levs in circulation had been withdrawn. Prices must be displayed in both lev and euro until August 31, 2026, and supervisory authorities report a low incidence of violations, less than 0.5% of retail outlets, with potential fines reaching up to EUR 100,000. The fixed exchange rate of 1 EUR = 1.95583 BGN remains unchanged.

Experience from other euro-adopting countries suggests that minor technical issues are normal during the first weeks and months, such as adjustments to ATMs, POS terminals, and cash systems. However, these have not caused significant disruptions to economic activity or daily life. Bulgaria’s rollout is comparable to other well-managed transitions in the eurozone, reflecting strong institutional preparedness and effective management. Overall, the Fiscal Council concludes that the country is handling its euro adoption in a highly organized and orderly manner, with the process demonstrating both technical competence and administrative readiness.