site.btaConference in Sofia Focuses on Economic Impact of Bulgaria's Euro Area Accession

A conference segment of The World Ahead 2026 Sofia Gala Dinner, organized by The Economist, focused on the economic impacts of Bulgaria's euro area accession. At the Grand Hotel Millennium Sofia on Thursday, the topic was discussed by Bulgarian President Iliana Iotova, Bulgarian National Bank (BNB) Governor Dimitar Radev, Bank of Greece Governor Yannis Stournaras, European Central Bank (ECB) Chief Economist Philip Lane, International Monetary Fund (IMF) Regional Representative for Central, Eastern and Southeastern Europe Carlos Mulas Granados, and leading business figures.

Opening the event, President Iliana Iotova said that it is crucial to strengthen trust in the euro and prevent factors that could erode it. She added that citizens should be guided as smoothly as possible through the transition. The head of State said the 2025 Convergence Report contains recommendations that remain unfulfilled, while the report on the Bulgarian National Bank was more positive. She also said that BNB Deputy Governor Andrey Gurov has been tasked with proposing a caretaker government and that she will push for the monitoring of prices of essential goods, fuel, energy, services, and medicines to prevent speculation.

Central Bank Governor Dimitar Radev said that the process of adopting the euro in Bulgaria is proceeding in line with preliminary expectations, both in terms of the technical transition and price dynamics in the country. According to Radev, nearly 85% of lev banknotes and coins have already been withdrawn from circulation, while more than EUR 7 billion have been put into circulation in the country. Radev stressed that price stability remains a key component of public trust. For that reason, assessments of inflationary trends must be based on comprehensive data and rigorous analysis, rather than isolated observations or short-term perceptions.

IMF Regional Representative for Central, Eastern and Southeastern Europe Carlos Mulas Granados stressed that Bulgaria’s accession to the euro area is a historic moment, but it does not in itself guarantee a higher standard of living. He stressed that although this represents important progress that has changed people’s lives, it is not sufficient, and adopting the euro must be accompanied by “good policies” in order to take convergence to the next level. In the short term, the IMF recommends tightening fiscal policy to prevent potential overheating of the economy, as well as enhanced monitoring of credit and financial risks.

Bank of Greece Governor Yannis Stournaras said that Bulgaria will benefit from the advantages of its membership in the euro area, but key conditions for success are adherence to prudent fiscal policy and strict banking supervision. According to him, the introduction of the euro in Greece in 2001 brought significant benefits to the country - it eliminated currency risk, reduced transaction costs and facilitated trade, tourism and investment. Membership increased confidence and helped improve inflation expectations, he added. Stournaras predicted that Bulgaria would experience the same positive effects. He also pointed out that Greece’s membership in the euro area was associated with many policy mistakes and weaknesses. 

Joan Hoey, editor of the annual Democracy Index and head of the Europe analysis team at The Economist Intelligence Unit, said that Bulgaria is one of the fastest-growing economies in the EU, it grew by 3% in 2025 and is expected to continue growing in 2026. The Economist's analytical unit identified private consumption as the main driver of growth in Bulgaria, combined with external demand and a forecast of substantial interest from foreign investors in Bulgaria and Southeast Europe, linked to the ongoing nearshoring process of shortening supply chains. She pointed out that a new growth model is needed for the country and the region as a whole. Hoey believes that an end to the war in Ukraine could have a strong positive effect on the region, particularly Bulgaria, as it would lead to investment in Ukraine's recovery and stimulate the economies of neighbouring countries.