Bulgaria's Eurozone Entry: A Boon or a Blow?

As Bulgaria joins the euro currency union, it faces political instability and public scepticism over potential price hikes. While supporters view it as a step towards greater European integration, concerns about inflation and corruption persist. Political turmoil and anti-euro sentiment further complicate the transition.

On New Year's Day, Bulgaria marked a historic moment by becoming the 21st country to adopt the euro, taking another step towards greater integration into the European Union. However, this milestone is overshadowed by political turbulence and widespread scepticism among citizens, concerned about potential price increases.

Advocates of the currency switch from the lev celebrate it as a significant achievement since Bulgaria's transition from a Soviet-style economy in 1989. They hope that euro adoption will attract investors and strengthen ties with wealthier Western Europe. Yet, there is unease in a nation where corruption and distrust in authorities run high.

A recent EU Eurobarometer poll revealed that public opinion is divided, with 53% opposing the eurozone entry. Political chaos ensued as the government resigned after less than a year, driven by anti-corruption protests, leaving the country without a regular budget and hampering structural reforms.

(With inputs from agencies.)