site.btaNational Forum Discusses Effect of Eurozone Membership based on Lessons from Member States

A national discussion was held at the Council of Ministers Friday on “The Effect of the Eurozone: Lessons from Member States”. The forum was organized by the Economic and Social Council of Bulgaria and is part of the country’s Communication Strategy for Information and Publicity of Bulgaria's Accession to the Euro Area.

The benefits and potential risks for the public of introducing the euro in Bulgaria were discussed by representatives of various institutions and experts.

Opening the forum, Prime Minister Rosen Zhelyazkov said that State authorities are on site, monitoring price dynamics and will seek explanations for any unjustified increases in the prices of certain goods. “This has nothing to do with the euro itself, since we don’t yet use the euro. However, the mere information that we may adopt it has encouraged certain market players to take proactive steps,” he commented. He assured that the public information campaign will not be politically driven or propaganda, but will provide reliable, factual content to address both public fears and concerns, while helping society make informed predictions. The goal, he noted, is to create a predictable market environment that will allow the positive effects and benefits of the euro to be implemented. In the Prime Minister’s view, regulatory authorities must exercise their powers effectively in the coming months to ensure that market distortions are prevented, regardless of their causes.

In his address, Interior Minister Daniel Mitov said that the process of joining the eurozone is not only an economic and financial challenge, but also an opportunity to build a more resilient, efficient, and secure State, along with a more dynamic and active economy. Minister Mitov underscored that the success of the euro adoption process depends on the active involvement and awareness of the entire society. “I believe that trust in institutions is an irreplaceable element of this process, and that trust is built through transparent actions and open, active communication with the public,” the Minister noted. He added that the Ministry of Interior will continue to carry out its responsibilities with a strong commitment to security and public peace.

Deputy Finance Minister Galia Dimitrova said that the introduction of the euro is not merely a currency changeover, it is a guarantee of stability, trust, and sustainable economic development. Dimitrova highlighted the many significant benefits of adopting the euro. The elimination of currency risk and the reduction in transaction costs will support both businesses and citizens. “We expect an increase in foreign investment, improved national competitiveness, and more favorable financing conditions for the state,” she said. She also noted that the adoption of the euro will indirectly lead to better performance by public institutions, helping to raise their standards to the level of the most developed EU countries. Furthermore, it will strengthen Bulgaria’s role in shaping Eurozone policy, including in the area of monetary policy. “One of our top priorities is ensuring consumer protection during the currency changeover,” she added. 

Zornitsa Rusinova, Chair of the Economic and Social Council (ESC), said that civic oversight is one of the most reliable ways to counteract speculative price increases during the process of adopting the euro. She called on citizens to be active, especially in light of the upcoming dual price labeling in lev and euro starting August 8, 2025. She emphasized that if consumers notice significant price changes on certain products within a short period, they should immediately report it to the Commission for Protection of Competition, the Commission for Consumer Protection, or even local authorities. Rusinova also recalled that the ESC will launch an extensive information campaign covering the technical aspects of euro adoption, including currency exchange procedures, and urged citizens not to rush to exchange their levs but to wait for the official transition to the new currency.

Bulgarian National Bank Deputy Governor Petar Chobanov expressed confidence that the transition to the euro will proceed smoothly. He added that Bulgaria must leverage its eurozone membership to achieve these new opportunities. Chobanov underscored that the top priority of the central bank is price stability. “We have two examples in the EU of currency boards — Estonia and Lithuania - which successfully joined the eurozone without major shocks, without changing their orientation towards maintaining fiscal and financial stability. Therefore, we have every reason to believe that we will continue our efforts in this direction and remain an example of fiscal policy, which also justified us being one of the few countries to meet the criteria without exceptions and to maintain the second lowest public debt level in the EU,” Chobanov said.

One of the discussion panels was on the impact of Eurozone membership on competitiveness and investment. The panel was moderated by Georgi Simeonov, Co-chairman of the Tax and Legal Committee at the Confederation of Employers and Industrialists in Bulgaria.

Daniela Bobeva from the Institute for Economic Research at the Bulgarian Academy of Sciences highlighted the benefits of increased transparency in business operations. “Data shows that it will become much more difficult for businesses to operate in the grey economy. Prices themselves don't rise, someone raises them. Why? Businesses need to understand that raising prices may cost them their competitiveness,” Bobeva said.

The Secretary General of the Bulgarian Industrial Capital Association, Milena Angelova, emphasized that Eurozone membership would slow Bulgaria’s debt accumulation. According to her, the most recent countries to adopt the euro experienced only minimal inflationary effects.

Stanislav Popdonchev, Deputy Chair and Chief Financial Officer of BIA, underscored the importance of implementing measures to protect the most vulnerable groups in society.

Sonya Dimitrova, Head of the European Affairs and Policies Directorate at the Ministry of Finance, said that eurozone accession would lead to an upgrade in Bulgaria’s credit rating and make the country more attractive to investors.

Marinela Petrova, an adviser at the Bulgarian National Bank, addressed some practical concerns related to timing and euro cash availability. “If businesses forecast accurately, there should be no issue with euro liquidity,” she said. Petrova reminded that businesses are required to return change in euros during the dual currency circulation period—unless they have no euro cash on hand, in which case an exception can be made.

Another discussion panel looked at the impact of eurozone adoption on incomes and prices, along with the role of regulators in curbing speculation during Bulgaria’s transition to the euro.

“We are standing on the threshold of a historic event – to join the European family with dignity in all its aspects,” said Rumen Spetsov, Executive Director of the National Revenue Agency. Spetsov described the Agency as a protective barrier serving Bulgarian consumers and noted that it conducts checks on whether traders are raising prices unjustifiably. Spetsov explained that it is normal for people to have concerns when the reasons and mechanisms behind certain processes are unclear. He noted that there may be speculation and disinformation, but regulators are working together and the State is taking all necessary steps to inform the public about requirements. “Every citizen and business must understand their rights and obligations and review both their business activities and personal finances,” Spetsov said.

Chair of the Commission on Protection of Competition Rossen Karadimov noted that they had undertaken a careful analysis of the powers of each regulator, and through mutual agreements, information exchanges, expertise, and joint action, aimed to multiply the effect of each regulator’s remit. He called this approach key, as each body has specific powers in its own area. Without synchronisation, information collected by each regulator remains within its own scope, Karadimov said. He added, “If we achieve synchronisation—as we managed uniquely well with colleagues over the past 10–15 days—the multiplying effect of those powers becomes extremely significant.” Karadimov noted the importance of inspection data, especially for local retail chains and markets.

Maria Filipova, Chair of the Commission on Consumer Protection, said that the principles of cooperation between the Consumer Protection Commission, the Competition Commission, and the National Revenue Agency centre on protecting consumers through preventive action. She explained that such measures include the launch of an information website, a mobile application, and an informational campaign.

Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria (CITUB), announced that CITUB will continue its independent research on the cost of living and the required monthly income, including for the basic consumer basket. This research, previously conducted quarterly, will now be performed monthly for at least the next 12 months to ensure continuous monitoring of price trends. Commenting on “interpretations” by economists who claim there is no problem in setting extremely high prices if someone is willing to pay, Dimitrov said, “That is not right - especially for essentials and the 20 key basket items on which people physically depend.” He added that regulators must ensure a fair market price, particularly for goods and services critical to people's survival.

Economist Atanas Pekanov noted that while prices are a major concern for the public, regulators must act to prevent unjustified practices. He said wage growth should be a priority if Bulgaria is to approach Western European living standards. “This has not always happened at the pace we want. Our goal is to see income levels in Bulgaria match those of the most advanced economies,” Pekanov noted.

A third discussion panel looked at the benefits and potential risks for the public of introducing the euro in Bulgaria.

Deputy Interior Minister Filip Popov noted that, at the international level, the Ministry of Interior is actively participating in a number of coordinated initiatives and operational meetings with representatives of partner institutions from European Union member states as well as with key international organizations. He said that a major focus of this cooperation is the exchange of information, best practices, and analyses related to trends and emerging threats in the field of currency counterfeiting. Popov explained that, regarding logistics and security for transporting and distributing euro banknotes and coins, the Ministry of Interior collaborates closely with the Bulgarian National Bank and the security services of the European Central Bank. According to the established plan, monthly meetings are held at both national and local levels with representatives of banking institutions. In coordination with the Bulgarian National Bank, security measures are implemented for facilities and the secure transport of cash within the country.

Ivaylo Ivanov, Governor of the National Social Security Institute (NSSI), emphasized that the transition from the lev to the euro must be carried out with as little difficulty as possible for social security system clients. Ivanov assured that the more favourable rules for recalculating pensions will be applied. We have already adapted our information systems to accommodate this change. With the decrees updating pensions by 8.6% effective July 1, 2025, all pension amounts will be recalculated and displayed in euros. This will give individuals a six-month period to familiarize themselves with the new amounts and know precisely what their pension will be in euros in 2026, when payments will be made exclusively in euros. Ivanov noted that approximately 40% of pensioners do not receive their pensions via bank transfers and assured that they will continue to receive their pensions in euro without any disruption. He confirmed that all social payments will be delivered to recipients on time and in full, even after the currency transition.

Deputy Executive Director of Bulgarian Posts Stanimir Belinov announced, "We have organized an information campaign, as our currency exchange services from leva to euro will be offered in smaller communities where bank branches are unavailable."

Lydia Shouleva, member of the Managing Board of the Council of Women in Business in Bulgaria and member of the Economic and Social Council, pointed out that one of the most widespread rumours is that after January 2026, leva will be exchanged at a rate of 1 to 3, instead of at the fixed rate. Shouleva said that this rumour had forced many people to exchange their money prematurely, resulting in considerable losses. She explained that these losses occur because, after Bulgaria enters the eurozone, the money in bank accounts will be converted automatically. Shouleva also drew attention to the elderly, who keep a large part of their savings at home. She urged them to deposit these funds in banks, where the money will be automatically converted after January 1, 2026. Shouleva added that another widespread rumour is that loan interest rates will change after eurozone entry. She said these rates will remain at their current levels.