Bulgaria switches from the lev to the euro, joining the eurozone amid public concerns over price increases and ongoing political instability.
SOFIA: Bulgaria prepared to adopt the euro on Wednesday night, becoming the 21st member of the eurozone nearly two decades after joining the European Union.
The switch at midnight local time will see the country abandon its historic lev currency, which has been in use since the late 19th century.
Successive governments in the nation of 6.4 million have pushed for euro adoption, hoping it will boost the economy of the EU’s poorest member and reinforce Western ties.
The move occurs amid political instability, with anti-corruption protests recently sweeping a conservative-led government from office.
Outgoing Prime Minister Rossen Jeliazkov said his cabinet had accomplished a milestone despite the turmoil.
“Bulgaria is ending the year with a gross domestic product of 113 billion euros and economic growth of more than 3%, which places us among the top five countries in the EU,” he stated.
He added that the country’s inflation rate of around 3.6% was “linked to increased purchasing power” and not the euro’s introduction.
Some Bulgarians fear the currency change will lead to significant price increases, a concern fuelled by a protest campaign to “keep the Bulgarian lev”.
Food prices rose by 5% year-on-year in November, more than double the eurozone average.
“Unfortunately, prices no longer correspond to those in levs (…) 40 levs is not 20 but 30 euros for certain products,” said pastry shop owner Turgut Ismail, 33.
Business owners have also reported difficulties obtaining euro cash, with some shopkeepers not receiving their ordered starter packages.
Banks have warned of possible disruptions to card payments and ATM withdrawals during the transition.
Long queues formed outside the Bulgarian National Bank and currency exchange offices in Sofia on Tuesday as people sought to obtain euros.
Despite the challenges, some business owners remain optimistic about the change.
“We will experience difficulties at first, there will be problems with giving change, but within a month we will have gotten used to it,” said gallery owner Elena Shemtova, 37.
According to the latest Eurobarometer survey, 49% of Bulgarians oppose adopting the single currency.
Analyst Boryana Dimitrova warned that any problems with the transition would be seized on by anti-EU politicians amid the country’s political instability.
Prime Minister Jeliazkov acknowledged the challenges but appealed for public understanding.
“There will be challenges, but we are counting on the tolerance and understanding of both citizens and businesses,” he said.
He stressed that introducing the euro will have “a positive long-term effect on the Bulgarian economy”.
Bulgaria’s accession will bring the number of Europeans using the euro to more than 350 million.
