On 8 July, the European Parliament approved Bulgaria’s entry into the eurozone by a large majority. Through this vote, Bulgaria – a country of six and a half million inhabitants in Eastern Europe – will begin to use the euro as its currency from 1 January 2026. What is the situation that led to this vote and what is Bulgaria’s future within the eurozone?

Since 1997, Bulgaria has operated under a currency board, initially tying its currency, the lev, to the German Deutsch Mark. After the euro replaced the mark, the lev was pegged to the euro. This system has limited Bulgaria’s monetary independence by eliminating policing tools such as devaluation. As a consequence, many have argued that the use of the lev provides little benefits and only costs to Bulgaria. Advocates for Bulgarian sovereignty argue that the currency board should be dismantled. However, there is a broad political consensus that it is a safeguard against fiscal irresponsibility and against inflation.

For the ruling centre-right coalition, and for most of the political representatives in the National Assembly, joining the eurozone is the culmination of Bulgaria’s full integration into the European family. Last year, Bulgaria joined the Schengen, the agreement that allows visa free traffic within Europe (originally signed in Schengen, Luxemburg in 1995, Bulgaria joined in 2005 but only began its implementation in 2024). The sentiment among the political majority in the Bulgarian Parliament and within the executive branch is that joining the eurozone is a huge milestone for Bulgaria. However, this is........

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