Bulgaria's euro area entry: A new phase of shared responsibility
Dimitar Radev, Governor of the Bulgarian National Bank, stated that Bulgaria's membership of the euro area marks a new phase of shared responsibility. Speaking in Sofia on February 12, 2026, he emphasized the shift from preparation to active participation in common monetary policy.
From Automatic Alignment to Shared Decisions
Bulgaria's euro area membership concludes a long process based on consistency and discipline, transitioning from a currency board to direct participation in common monetary policy.
While monetary conditions were already closely aligned with the euro area, the institutional position has fundamentally shifted.
Bulgaria now directly participates in formulating common monetary policy, including assessments of inflation, economic activity, and financial risks for the entire euro area.
This transition from automatic alignment to shared decision-making represents the core economic meaning of euro adoption, combining greater influence with a higher degree of responsibility.
Operationally, the transition has been smooth: close to 85 percent of lev banknotes and coins have been withdrawn, and over 7 billion euro were made available for cash circulation.
The banking system, payment infrastructures, businesses, and households adjusted within planned parameters, reflecting extensive preparation and institutional coordination.
Beyond the initial price effects
Price stability, vital for public trust, requires data-driven assessments.
Bulgaria's January annual inflation was 2.3 percent, consistent with the euro area.
ECB and BNB experts identified a limited, temporary price effect of 0.3–0.4 percentage points on January's monthly inflation, mainly in services.
This aligns with other euro adopters and prior expectations, given Bulgaria's historical inflation link to the euro area.
Distinguishing short-term changeover effects from longer-term price convergence is vital, as domestic prices, especially in services, tend to rise faster with income growth.
Price stability also depends on the quality of the institutional framework and consistent economic policies, not solely on monetary policy.
Sovereignty in shared governance
Bulgaria's euro area membership redefines sovereignty, shifting to active participation in a shared institutional framework.
This transition offers reduced currency uncertainty and deeper financial integration, yet its success hinges on national commitment to fiscal prudence and effective supervision.
The euro amplifies institutional quality and policy sustainability, making robust domestic governance paramount for integration benefits.