ATMs in former communist country issue euros for first time since joining monetary union

ATMs in the capital Sofia dispensed brand new euro banknotes, replacing the lev, which will still be used for cash payments in January. However, people will only receive euros in change.

The country of nearly 6.7 million people was one of the poorest when it became a member of the European Union in 2007. Joining the European single currency system means deeper integration of the EU after its 1989 transition from a Soviet-style economy to democracy and a free market.

However, the historic milestone is coming in a context of political instabilitywith the Conservative-led government forced to resign earlier this month following nationwide attacks. anti-corruption protestsand skepticism among ordinary citizens, fueled by fears of rising prices.

The government had to bring inflation down to 2.7% earlier this year to comply with EU rules and win approval from European leaders. But his resignation left the country without a regular budget for next year, hampering reforms and the use of support funds from the 27-member bloc, fueling protests.

Nationalist and pro-Russian groups in Bulgaria have also exploited fears that the changeover would allegedly lead to more poverty and a loss of national identity.

Countries joining the EU commit to the euro, but that can take years and some members are in no rush. Croatia was the last to join in 2023.