European Central Bank President Christine Lagarde warned that Bulgaria may see a temporary rise in inflation when it adopts the euro on January 1, 2026, due to price rounding by retailers.
However, Lagarde emphasized that the long-term benefits — including smoother trade, lower financing costs, and more stable prices — will far outweigh this one-off increase.
Bulgaria currently has one of the highest inflation rates in the EU at 4.1%, and public opinion is split, with many concerned about sovereignty and potential price increases. Past euro adopters, like Croatia, experienced a one-time inflation bump of 0.4 percentage points, which quickly normalized.
Lagarde encouraged transparent reforms and careful planning to maximize the benefits of euro adoption for Bulgarian citizens and businesses.
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