Bulgaria adopts euro amid celebration and anxiety over inflation | Economic and commercial news

The move comes nearly two decades after the Balkan country joined the EU, as hopes for stability collide with fears of rising prices.

Bulgaria has officially adopted the euro, becoming the 21st country to join the single currency almost two decades after joining the European Union, a decision that has sparked both celebration and anxiety.

At midnight on Wednesday (22:00 GMT), the Balkan country abandoned the lev, its national currency since the end of the 19th century.

Images of Bulgarian euro coins lit up the central bank headquarters in Sofia as crowds gathered in freezing temperatures to mark the new year.

“I warmly welcome Bulgaria to the eurozone family,” said Christine Lagarde, President of the European Central Bank.

Some residents welcomed the change with optimism. “Great! It works!” said Dimitar, 43, speaking to The Associated Press after withdrawing 100 euros from an ATM shortly after midnight.

Successive Bulgarian governments have supported adoption of the euro, arguing that it would strengthen the country’s fragile economy, anchor it more firmly in Western institutions and protect it from what officials describe as Russian influence. Bulgaria, with a population of around 6.4 million, remains the poorest member of the EU.

Public divided

However, public opinion has long remained divided. Many Bulgarians fear the euro will push up prices while wages stagnate, worsening living standards in a country already struggling with political instability.

In a televised speech shortly before midnight, President Rumen Radev called the euro the “last step” towards Bulgaria’s integration into the EU.

However, he criticized the lack of a public referendum on this decision.

“This refusal is one of the dramatic symptoms of the deep divide between the political class and the people, confirmed by the mass protests across the country,” Radev said.

Bulgaria recently plunged into new uncertainty after anti-corruption protests overturned a Conservative-led government in December, pushing the country towards its eighth election in five years.

“People are afraid that prices will rise while salaries stay the same,” a woman in her 40s told the AFP news agency in Sofia.

In the city’s markets, sellers indicated prices in levs and euros. Not everyone was worried.

“The whole of Europe has succeeded with the euro, we will succeed too,” said Vlad, a retiree.