Financial Times: Joining the eurozone brings many dividends to Bulgaria

Bulgaria's adoption of the euro is the result of a long-term economic and institutional logic that goes beyond purely technical arguments about currency risk, writes the British newspaper Financial Times in an analysis dedicated to our country's accession to the eurozone from January 1, 2026, Focus reports.

It states that the currency board has severely limited the role of the BNB, which for decades has automatically followed the monetary policy of the Bundesbank, and then the European Central Bank (ECB), without having any influence on decision-making.

With its membership in the eurozone, Bulgaria is now directly involved in the management of monetary policy through its representation on the Governing Council of the ECB, the Financial Times emphasizes. The publication notes that adopting the euro does not mean a loss of sovereignty, but on the contrary - gaining a voice in making decisions that affect it in any way.

The publication states that membership in the eurozone will also bring direct economic benefits.

Specifically, Bulgaria gains the right to participate in monetary policy decisions: a representative of the national central bank now has a vote in the Governing Council of the European Central Bank. Previously, monetary policy was essentially determined in Frankfurt, without the participation of Sofia.

According to the publication, membership in the eurozone should also have a positive effect on the real economy. The euro could increase the confidence of international investors in the country, and new regulations in the banking sector could make lending cheaper and more accessible. The mandatory reserve ratio for banks has already been reduced from 12% to 1%, which, other things being equal, frees up additional capital for lending to households and businesses. In addition, the Bulgarian National Bank and the ECB now jointly serve as lenders of last resort, which the FT says could increase banks’ risk appetite.

The Financial Times notes that rating agencies have already upgraded Bulgaria’s sovereign ratings since the official decision to join the eurozone, noting the possibility of further improvements as the institutional environment strengthens. The increased investor interest is also reflected in the stock market: the Bulgarian stock index has risen by more than 20% since the beginning of January, becoming one of the fastest growing in the world.

At the same time, the FT stresses that there remains significant resistance to the euro in the country. Critics point out that currency risk has already been eliminated, and economic policy has been closely tied to ECB decisions. So the standard argument in favor of joining a monetary union – eliminating currency risk – is no longer applicable. Former President Rumen Radev, who resigned from the presidency days ago, also expressed skepticism about the decision to adopt the euro.

Bulgaria's entry into the eurozone comes exactly one year after the country was included in the European-wide Schengen zone for border-free travel. Reaching these two milestones in just 12 months has created a sense of real progress on Bulgaria’s path to full European integration.

With Russia’s influence operations intensifying since its invasion of Ukraine and the constant risk of trade wars since President Donald Trump returned to the White House, analysts say deeper ties with the EU could not have come at a better time.

“Leaving the euro is very complicated and has never been fair before, so eurozone membership is a real signal of commitment to the European project,” said Yasen Georgiev, executive director of the Economic Policy Institute, a Sofia-based think tank.

“This brings us one step closer to being at the heart of the EU.