The introduction of the euro in Bulgaria is not related to an increase in inflation, according to an analysis by the Fiscal Council
SOFIA – The introduction of the euro is a nominal change and is not related to an increase in inflation, according to the Fiscal Council of Bulgaria in an analysis examining the level of inflation in several eurozone countries three years before and three years after the introduction of the euro.
Inflation is not caused by the currency change itself, but by real factors such as military conflicts with direct impact on the country, production costs, demand, energy prices and economic policy, the Fiscal Council points out.
Prices and incomes in the country were recalculated at the fixed exchange rate and this did not lead to an increase in the money supply, all the more so since our country was also under a currency board arrangement. The experience of the eurozone countries shows only a minimal one-off effect, and the perception of a general increase in prices (inflation) is often more psychological than real, the analysis further states.
The Fiscal Council notes that before the introduction of the euro there was a moderate to strong increase in inflation in the countries under review and more specifically – strong in Estonia, negative to moderate in Latvia, and moderate in Slovenia, Slovakia and Croatia.
In the first year after the introduction of the euro, inflation increased in three countries – Slovenia (+1.3%), Estonia (+2.4%) and Latvia (+0.7%). In three countries inflation decreased – Slovakia (-3.0%), Lithuania (-0.9%) and Croatia (-2.1%).
In the second and third year after the introduction there is stabilization and a return to moderate levels in all six countries.
As of 1 January 2026 Bulgaria is officially the 21st member of the eurozone. On 8 July 2025 the Council of the EU unanimously voted on the final decisions related to the adoption of the euro in the country. This completed the procedure, after earlier the same day the European Parliament also approved by a large majority the report on the introduction of the single European currency by Bulgaria. (26.01.2026)
