Switching to the euro: Bulgaria joins the euro almost twenty years after joining; cheer mixes with fear over prices – The Times of India

Bulgaria adopted the euro as its official currency on Thursday, making it the 21st country to join the eurozone. A long-awaited milestone that comes almost twenty years after the Balkan country’s accession to the European Union, but which has exposed deep political and public divisions.At midnight, Bulgaria formally gave up the lev, which had been in use since the late 19th century, marking the transition with projections of Bulgarian euro coins on the central bank building in Sofia. The country of 6.4 million joined the eurozone in New Year celebrations that mixed optimism with fears of inflation and political instability, AFP reported.“I warmly welcome Bulgaria to the euro family,” said Christine Lagarde, President of the European Central Bank, describing the euro as a “powerful symbol” of “shared values ​​and collective strength.”For some Bulgarians, the transition was tangible and immediate. “Great! It works!” said Dimitar, a 43-year-old, after withdrawing 100 euros from an ATM shortly after midnight.Successive Bulgarian governments have supported the adoption of the euro, arguing it would strengthen ties with the West, boost the economy of the EU’s poorest member and protect the country from Russian influence. But public opinion is still divided, with many fearing the transition could drive up prices and worsen political uncertainty.President Rumen Radev called the move the “final step” in Bulgaria’s EU integration shortly before midnight, even as thousands of people gathered in Sofia in sub-zero temperatures to celebrate the new year. He also regretted that Bulgarians had not been consulted through a referendum.“This refusal was one of the dramatic symptoms of the deep divide between the political class and the people, confirmed by mass demonstrations across the country,” Radev said.The changeover to the euro comes at a turbulent political time. Anti-corruption protests ousted a conservative-led government in mid-December, leaving Bulgaria facing the prospect of its eighth elections in five years.“People are afraid that prices will rise while salaries will remain the same,” a woman in her 40s told AFP in Sofia.At major markets in the capital, prices for goods ranging from groceries to New Year’s Eve items were displayed in both levs and euros. “All of Europe has succeeded with the euro, and we will succeed too,” said Vlad, a retired resident.European Commission President Ursula von der Leyen said Bulgaria’s entry into the eurozone was “an important milestone”, adding that it would make traveling and living abroad easier, improve market transparency and competitiveness and facilitate trade.Central bank governor Dimitar Radev said the euro represented more than “just a currency – it is a sign of solidarity”.However, concerns remain widespread. According to the latest Eurobarometer survey, 49% of Bulgarians are against the changeover. Outgoing Prime Minister Rossen Jeliazkov tried to reassure citizens and businesses, saying he was “counting on the public’s tolerance and understanding” and emphasizing that inflation was not linked to the introduction of the euro.Official data show that food prices rose 5% year-on-year in November, more than double the eurozone average. “Unfortunately, prices no longer correspond to those in levs,” 33-year-old pastry shop owner Turgut Ismail told AFP, saying prices had already started to rise.Analysts warned that any disruption could be politically sensitive. “Any problem with the introduction of the euro would be seized upon by anti-EU politicians,” said Boryana Dimitrova of the polling institute Alpha Research.Some entrepreneurs complained of difficulties in accessing the euro ahead of the switch, while critics questioned the timing. “It’s not the right time,” said Stephane, a 64-year-old economist, citing high debt burdens in other euro zone countries.The euro was first introduced in twelve countries in 2002, with Croatia the most recent newcomer in 2023. Bulgaria’s accession will bring the number of people using the common currency to more than 350 million.