Starting January 1, 2026, Bulgaria will transition from the Lev to the euro, marking it as the 21st nation in Europe to adopt this currency.
With a population of about 6.7 million, Bulgaria has been part of the European Union since January 1, 2007, and became a member of the Schengen Area in March 2024. These milestones have significantly aided its integration into the broader European community.
This development means that only six countries in the 27-member EU will retain their own currencies: the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden.
What is the euro?
The euro serves as the official currency of the European Union, providing a unified monetary system for member states and simplifying both trade and travel among them.
Approximately 350 million people use the euro, making it the most commonly utilized official currency and the second most traded reserve currency in the world, following the US dollar.
The euro, overseen by the European Central Bank and the Eurosystem, features six different banknotes showcasing various architectural designs from Europe. Although the 500 euro note was demonetized in 2019, it remains legal tender.
While euro banknotes are uniform across countries, the coins feature unique national designs chosen by individual nations.
How does a country join the Eurozone?
The European Union, formed in 1993, consists of 27 European countries aimed at fostering cooperation, free trade, and collective policies across the continent.
Most EU nations are mandated to adopt the euro, provided they satisfy specific economic criteria. Countries using the euro form what is known as the euro area.
Denmark is the only member that has explicitly chosen to remain outside the eurozone, thanks to provisions in the 1992 Edinburgh Agreement, meaning it is not legally required to adopt the euro.
To join, a country must participate in ERM II (Exchange Rate Mechanism) for a minimum of two years. During this phase, the national currency is pegged to the euro. If the currency shows excessive fluctuation, the country may lose the chance to switch to the euro.
Apart from EU members, four small nations—Andorra, Monaco, San Marino, and Vatican City—have agreements allowing them to use the euro as their official currency, despite not being EU members.
When did countries adopt the euro?
The euro made its debut in financial markets as an accounting currency on January 1, 1999, replacing the European Currency Unit (ECU) at a 1:1 ratio. Physical notes and coins were introduced on January 1, 2002, successfully replacing national currencies by March of the same year.
The initial adoption was by 11 countries:
1999: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain.
2001: Greece joined on January 1, becoming the first country to adopt the euro after its launch.
2007-2009: Slovenia, Cyprus, Malta, Slovakia.
2011-2015: Estonia, Latvia, Lithuania.
2023: Croatia.
2026: Bulgaria is set to join on January 1, 2026.
