“Joining the euro will only strengthen [sovereignty] for Bulgaria — we will participate in the decision making process of the ECB,” Atanas Pekanov, a Bulgarian economist and the country’s former deputy prime minister, told POLITICO.
For decades, the lev — the local currency — was pegged to the euro but the country had no say over the ECB’s monetary policy decisions as it was not a member. If Bulgaria joins the single currency as planned in 2026, Bulgaria’s central banker will take a formal seat in the ECB’s Governing Council. However, as it will be only the 13th largest member of the union, accounting for less than 1 percent of its gross domestic product, its influence on the Council will be limited.
Concerns persist
Critics warn, however, that the move is not without risk. Adopting the single currency could, for example, trigger at least a one-off rise in prices — particularly hurting poorer households in rural areas — as businesses take advantage of the switch.
In the medium term, low domestic prices also tend to adjust to higher European norms thanks to increased trade within the bloc. This has been the pattern for recent adoptees such as Slovakia, Estonia and Lithuania, all of whom initially experienced rises in inflation.
Fears are most acute inflation would hit basic goods like vegetables, especially in rural areas where consumers have fewer choices.
“[Rural voters are skeptical] not because they’re euroskeptic, but because of fears over an increase in the cost of living,” said Pekanov, who’s a major supporter of euro accession.
