Bulgaria became the 21st nation to adopt the euro as its official currency on New Year’s Day, joining the eurozone.
The country had joined the EU in 2007, and committed to replace its currency, lev, with the euro, which was introduced in 1999 by 11 nations, including Germany and France.
Before Bulgaria, Croatia adopted the euro in 2023. The number of countries adopting the currency has steadily increased over the past 26 years.
Bulgaria’s GDP per capita is the lowest among the EU states in the European Union, and hopes that the adoption of the euro will stimulate business and boost foreign tourism in the coming months.
European Union Commission Chief, Ursula von der Leyen, issued a welcoming statement on Wednesday, saying it was a good step for Bulgaria that strengthens Europe as a whole. “It makes our economy more resilient and competitive globally,” she said.
Meanwhile, six EU member states have declined to use the euro as their currency, which include Sweden, Denmark, Poland, the Czech Republic, Hungary, and Romania, who maintain their own currencies for economic independence or haven’t adopted it because they haven’t met the criteria.
Further, several Non-EU nations, such as Switzerland, Norway, Iceland, and the United Kingdom, also use their distinct currencies, like the Swiss Franc, Norwegian Krone, and British Pound, for similar reasons of monetary sovereignty.
Bulgaria, which is currently witnessing a stagnation in its economy along with rising inflation, is likely to benefit more compared to some other members in the eurozone.
The country is expected to receive benefits like easier travel and payments, eliminated currency exchange costs, stronger investor confidence, lower borrowing costs, and better access to the EU Single Market, boosting trade with Eurozone partners.
