Bulgaria is set to join the euro zone. Its citizens aren’t convinced

Bulgaria will become the 21st member of the euro zone after receiving the European Commission sign and the European Central Bank last week, but not everyone is convinced that the measure is a good idea.

Bulgaria’s Prime Minister Rosen Zhelyazkov, a member of the GERB party of the center of the right, has made the euro zone a priority, arguing that it would boost economic stability and growth.

However, the fears of higher prices and a loss of independence have fueled the protests of the nationalist parties fed against the country’s European ascension. A recent European Union survey showed that Half or the population of Bulgaria is against adopting the euro.

Economists and experts intervened in the potential risks for Bulgaria to join the euro, describing what the country of Eastern Europe could lose and win of the move.

“The most immediate concern is an increase in the duration of prices, the change of foreign exchange, since some companies can round the prices. Many Bulgarians are concerned that the membership of the Eurozone can erode its purchasing power, special in the poorest rural arases,” Bulgaria told CNBC.

Neverberness, Hey also pointed out that the Bulgarian currency has had a fixed exchange rate for the euro and, therefore, “the increase in transition inflation should be mild.”

The second key concern is what will renounce the currency of Bulgarias, the Lev, for the independence and sovereignty of the country, ideal for which it has become symbolic according to Andrius tursa, advisor to central and eastern Europe in Teno.

“Its replacement for the euro can be perceived by parts of the population as a loss of national control,” CNBC touched. In addition, there are concerns about giving up the control of monetary policy, since the country in the euro zone is subject to decisions of the ECB, added Tunta.

The Bulgaro National Bank (BNB), for example, would no longer be responsible for establishing the country’s interest rates based only on how its individual economy is developing.

However, “Eurozone countries benefit from lower interest rates due to the credibility of the ECB and a small monetary risk,” Tursa said. The lowest interest rates generally benefit borrowers as loans and mortgages become more affordable.

Joining the euro zone and ensuring the supervision of the ECB could boost economic stability and growth prospects for Bulgaria, Jasmin Groeschl, a senior economist of Europe in Allianz Se, to CNBC.

Foreign investment could, for example, suggest, suggested, and it is expected that the country’s gross domestic product was driven by the Euro zone membership.

“The deepest financial integration would strengthen Bulgaria’s financial system under the supervision of the ECB, improving monetary stability,” Groeschl explained. “Adopting the euro would strengthen Bulgarias’s ties with the EU, improving its influence and credibility,” he added.

The key areas that support the economy such as commerce and tourism could also be supported, Tursa de Teneo said.

Many of Bulgaria’s key commercial partners are in the EU, and most of their exports go to the members of the 27 states block in 2023 according to the data of the country’s statistics office. The key sectors include transportation and transport equipment, manufactured products and food.

Meanwhile, tourism has become an important taxpayer to the economy, since Bulgaria positions itself as a summer and winter destination. Some 13 million foreigners visited the country in 2024, showed official statistics.

“Bulgaria’s adhesion to the Eurozone would facilitate commercial and tourist flows with other eurozone countries by eliminating costs and load associated with currency conversion,” Tursa said, and added that it would be integrally important due to togarly due to chopped due to a due to a due to one because it was due to togarically due.

A risk marked by economists and analysts are the political tensions surrounding the adoption of the euro of Bulgarias.

“The public opposition to the adoption of the euro has already caused notable protests, and in the medium term, the problem could become a key driver of the growing support for populist and Euroestptic political movements,” Tursa de Teneo explained.

But despite local protests and concerns about the ascent of the euro zone, at least in the long term, the benefits for the country exceed any negative, allianz Ses Groeschl argued.

“Compensation implies losing some economic autonomy in exchange for deeper integration,” he said. “Although Bulgaria would lose control of monetary policies and would be subject to strict fiscal rules, the advantages of greater economic stability, reduced transaction costs and more solid integration with the EU market that reach disadvantages.”

Ing Tataru gave a similar tone, saying that because the Lev is already linked to the euro, there should not be a great shock.

“Uniting the euro is one of the most strategic steps that Bulgaria can take to ensure long -term desperity and deeper European integration,” he said.