SOFIA, Bulgaria — At the stroke of midnight on January 1, 2026, Bulgaria officially retired the lev, its national currency for 145 years, and became the 21st member of the eurozone. The historic transition marks the final step of the Balkan nation’s integration into the European Union, nearly 19 years after its initial entry in 2007.
The changeover was commemorated with high-tech 3D projections of the new Bulgarian euro coins onto the facade of the Bulgarian National Bank in Sofia. However, the celebrations were underscored by a palpable mix of national pride and economic anxiety.
The “Dual Circulation” Phase
To ensure a stable transition, Bulgarian authorities have implemented a tiered phase-out of the lev:
- One-Month Grace Period: Until January 31, 2026, both the lev and the euro will serve as legal tender. Retailers are required to give change exclusively in euros to flush the old currency out of the system.
- Sole Legal Tender: On February 1, 2026, the euro will become Bulgaria’s only official currency.
- Dual Pricing: To combat predatory price hiking, all businesses must display prices in both currencies until August 8, 2026.
The Fixed Conversion: The exchange rate is locked at €1 = BGN 1.95583, the same peg maintained by the country’s currency board since the euro’s inception in 1999.
Economic Hopes vs. Inflationary Fears
For successive governments, joining the eurozone has been a strategic shield against Russian influence and a catalyst for the EU’s poorest economy.
- The Upside: Membership is expected to lower borrowing costs, boost foreign investment, and eliminate transaction fees that currently cost Bulgarian businesses millions annually.
- The Anxiety: Public opinion remains deeply fractured. A recent Eurobarometer survey showed 49% of Bulgarians oppose the switch, primarily fearing “unjustified” price hikes. While the European Central Bank (ECB) projects an inflation impact of only 0.2–0.4%, many citizens fear a “rounding up” effect on basic groceries.
| Industry Impact | Projected Benefit | Potential Risk |
| Tourism | Seamless travel for EU visitors | Price perception in local markets |
| Banking | Direct access to ECB liquidity | Temporary ATM/System outages |
| Trade | 0% exchange rate risk with EU | Compliance costs for SMEs |
Political Instability at the Finish Line
The transition comes at a precarious political moment. Just weeks before the switch, a conservative-led government was toppled by anti-corruption protests, leaving the country facing its eighth election in five years.
President Rumen Radev, while hailing the move as a “civilizational choice,” criticized the political class for refusing a public referendum. Critics warn that any early economic friction or technical glitches during the changeover will likely be weaponized by anti-EU factions in the upcoming 2026 elections.
