of Bulgaria’s Euro Adoption transaction costs. The major political gains for Bulgaria are obtaining a seat at the table of the European Central Bank (ECB) and having a stronger voice and power to promote Bulgaria’s own position within the Union. Another important aspect is the further integration within the Union, which is a direct result of adopting the unifi ed currency. The Bulgarian representative to the General Council is Dimitar Radev, who is the governor of the Bulgarian National Bank (BNB). Price and Infl ation stability The European Central Bank has set a clear objective of a 2% infl ation “over the medium term.” This means that the ECB aims to keep the average infl ation over a period of several years near the 2% mark. Price stability is closely linked to infl ation – as per the ECB, to achieve price stability, infl ation must remain “low, stable and predictable.” There is some unrest in the Bulgarian public Lagarde, that that infl ation will skyrocket after the offi cial adoption. Christine the President of the ECB, addressed the stating issue, these concerns are “entirely legitimate.” She went on to add: “Currency changeovers can produce a temporary uptick infl ation, often when fi rms round up prices during conversion.” As per the offi cial European Commission website, “On average, past euro changeovers have led to a very small and one-off increase in prices, ranging from 0.1% to 0.3%. Over time, however, the euro has a price-stabilising eff ect.” Lower Transaction costs The constant exchange of Bulgarian lev to other currencies may not seem like a signifi cant problem. In reality, it is not, for individuals and one-time occasions. The business sector, however, experiences consequential money losses. Businesses usually trade with foreign companies, and most of the monetary transactions are not conducted in Bulgarian lev. The mainly accepted international trade currencies are the Euro, Editors: Kaloyan Ivanov, Vasil Paskov, Hary Dikov, & David Mitov by Veronika Ivanova 11 Fall 2025 | AUBG Daily in measured EU Integration Adopting the euro as the offi cial currency is a major step Bulgaria takes to further integrate itself into the European Union. As a member of the Eurozone, Bulgaria now has a voting seat in the ECB’s Governing Council. This means the Bulgarian representative to the Council will directly express the country’s position on monetary and other issues under the ECB’s jurisdiction. Having a seat in the Council means Bulgaria will now have the ability to advocate for its own stance on monetary matters as opposed to simply following the ECB’s decisions without any input. As Lagarde expressed, “Bulgaria will have a view, a voice, a vote.” The President of the European Commission, Leyen, Ursula shared her von der position: “Thanks to the euro, Bulgaria’s economy will become stronger, the US Dollar, and the British Pound. Therefore, when Bulgarian companies trade internationally, they must exchange the lev for some of those currencies. This results in signifi cant money losses. Adopting the euro will eliminate almost all of those conversion costs and allow companies to use this capital for the expansion of their business. Christine Lagarde acknowledged these benefi ts, saying: “For Bulgarian fi rms, that means zero conversion costs when exporting to their primary European customers. Small and medium-sized enterprises will save around one billion levs every year in conversion costs alone.” Trade investments In the words of Lagarde: “Adopting the euro will also open the door wider to European capital markets. It will lower funding costs and provide a more stable basis for long-term investment.” Fitch Ratings and S&P Global Ratings, two of the world’s major credit-rating providers, have upgraded their rating of Bulgaria to BBB+. This rating characterizes Bulgaria as having a “stable outlook,” indicating the country is a relatively safe investment-grade borrower with moderate risk. The achievement is a direct result of the country’s adoption of the euro and has a strong potential to attract foreign investors to the country.
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