site.btaLove at Second Sight: Analysis Explores Support for the Euro Before and After Adoption

Аn analysis titled, Love at second sight: support for the euro before and after adoption, says that many Bulgarians are still hesitant about giving up their national currency, the lev, in favour of the euro on January 1. Mixed feelings are not uncommon in countries adopting the euro, the report says. It argues, however, that support significantly increases once people start using the euro in their daily lives.

The analysis was written by Ferdinand Dreher and Nils Hernborg and is published on the European Central Bank (ECB) blog.

It says that, according to Eurobarometer surveys, mixed sentiment prior to euro adoption shifts as support for the euro rises significantly after adoption. This pattern holds true across all eight countries that joined the euro area after 2002 (Slovenia, Cyprus, Malta, Slovakia, Estonia, Latvia, Lithuania, and Croatia). On average, support for the euro jumps by 11 percentage points from the last survey before adoption to the first survey conducted afterward. Following adoption, public opinion stabilizes at a clear majority in favour in all countries, with an average of 73% supporting the euro and only 22% against.

People's main concerns before adoption are that prices will rise when the old currency is replaced by the euro, a symbol of national identity (the respective national currency) will be lost, and national control over economic policy will disappear, the report says.

The first and most important factor driving the rise in public support after euro adoption could be that many of the initial fears simply do not materialize, the analysis goes. As cash machines dispense euros, salaries arrive on time, and shops are open about how they set prices, trust in the new currency grows. Once the euro becomes the new status quo, people tend to warm to it through daily exposure – a psychological phenomenon called “mere exposure effect”. Fears of price spikes may also fade as consumers typically observe that the changeover has limited effects on inflation.

At the same time, the benefits of adopting the euro become tangible and show up in survey data. Travellers experience the ease of paying in the same currency across much of the continent. Online shoppers compare and pay across borders without worrying about exchange fees. Firms experience fewer foreign-exchange risks. Banks begin to offer products on better terms. And investors treat the country as part of a larger currency area, which can boost trade and investment. There is good reason to believe that these practical advantages reinforce positive attitudes towards the euro among the new currency users, the report says.

Meanwhile, survey data also indicate that identity adapts. The euro does not erase national identity. It adds a European layer on top of it, the authors argue.

Ultimately, public support remains high and rises further as the euro continues to deliver repeated, practical benefits that make life easier, the analysis says.

Summing up, the report notes that the experience of the countries that have adopted the euro since 2002 offers a clear lesson: initial scepticism and concern often give way to broad public support once the currency is in use.

The euro area will always contain different histories, cultures and preferences, the analysis says. What keeps it together through recessions, pandemics and energy shocks is a shared sense that the common currency provides concrete benefits and therefore enjoys broad public support. In this sense, the euro is more than just a currency. It is a powerful symbol of unity, stability and shared prosperity. Countries that have adopted the euro since 2002 have seen fears give way to tangible benefits, from smoother trade and travel to a stronger sense of belonging in Europe.

As Bulgaria prepares to join the euro area in 2026, the experiences from past changeovers provide valuable insights on how to build strong foundations for public support for the euro after adoption. Transparent communication, careful planning, and measures to reassure the public are essential to ensuring a smooth transition and together lay the groundwork for long-term success, the report concludes.