The process of Bulgaria’s transition to the euro is unfolding more smoothly than was anticipated just a few months ago, according to Petar Ganev, senior economist at the Institute for Market Economics, speaking in an interview with Bulgarian National Radio. As he emphasised, operational preparations in both the retail sector and the banking system are well advanced, with large retail chains in particular having already adapted their systems to operate in the new currency. Equally important, in his view, is the measured communication by public institutions and the media, which helps to maintain calm public sentiment and reduces unnecessary pressure surrounding the currency changeover.
According to figures cited by Ganev, around 16 billion leva remain in circulation out of the previous 30 billion, while more than 3 billion euros are already in use within the economy. Although the leva still dominates everyday transactions, the economist stresses that the direction of change is effectively one-way. Business revenues are increasingly being settled in euros, and leva collected by large retail chains flow to commercial banks and ultimately to the Bulgarian National Bank. In his assessment, even smaller shops, including those in less developed regions of the country, will in the near future operate predominantly in euros.
The issue of prices and potential inflationary effects remains one of the most frequently discussed topics in the public debate. Ganev acknowledges that rounding does occur during the conversion process, but describes it as a minor and normal effect of around 0.5 percent, which facilitates the use of coins and smoother transactions. He notes that while isolated price increases can be observed in some locations, there is no evidence of widespread or systematic price hikes directly linked to the introduction of the euro.
Turning to public finances, the economist expects data for December 2025 to show a 5–6 percent increase in wages in the public sector. At the same time, he reassures that the continued payment of salaries and pensions, along with the standard mid-year indexation, should prevent disruptions to everyday life for households. At the macroeconomic level, however, he points to challenges stemming from the absence of an adopted state budget. In such circumstances, the management of investment funds becomes more cautious, with a stronger focus on liquidity and revenue control.
Looking ahead, Ganev anticipates that the first half of the year will be spent operating under the existing budgetary framework. The formation of a new parliamentary majority following elections will determine whether public spending can be more fully activated, or whether Bulgaria will remain under extended provisional budget management for much of 2026.
