What does it mean for a country to switch to the euro? In a recent interview with Swedish Radio (Sveriges Radio), Joakim Zander, Senior Lecturer in Business Law at LUSEM, discussed Bulgaria’s transition into the euro area.
On 1 January 2026, Bulgaria will officially adopt the euro as its currency. But according to Zander, the change may not be as dramatic as one might expect:
“It will of course be noticeable—suddenly euros will be coming out of ATMs instead of the old currency, the lev. But aside from that, there may not be many visible changes for people in Bulgaria.”
He explains that Bulgaria fixed its currency to the euro back in 1999 and has since been aligned with the eurozone’s monetary policy. Introducing the physical currency now is more of a symbolic step.
As for concerns about rising prices—often a worry when countries switch currencies—Zander is clear:
“You can never know for certain, but if we compare with other countries that have adopted the euro, it's hard to see that prices have risen because of the currency change. Looking at the major euro transition in 2002, there’s no solid statistical evidence that consumer prices increased as a result.”
Joining the eurozone also requires countries to meet strict economic criteria—known as the convergence criteria or Maastricht criteria. Bulgaria has fulfilled all of them.
“These include sound public finances, low government debt, exchange rate stability, and participation in the Exchange Rate Mechanism (ERM II)* for at least two years.”
So how does the inclusion of a new member affect the euro itself?
“Not at all, I’d say. Bulgaria is a small country with a stable economy. But for Bulgaria, the change could bring positive effects—such as increased trade, easier travel, and smoother economic integration.”
And what about Sweden?
We followed up with Joakim Zander to hear his views on Sweden’s relationship with the euro:
Do you think Sweden will adopt the euro anytime soon?
“That’s impossible to say. There hasn’t been much political appetite for it. But considering how quickly Sweden moved on NATO membership recently, things can shift fast.”
Are there any disadvantages to Sweden remaining outside the eurozone?
“The euro brings two key things: stability and stronger cohesion with the EU. And I believe both are things Sweden could really benefit from.”
* ERM / European Exchange Rate Mechanism is a system within the EU that allows member states with their own national currencies to link them to the euro.
Source: Eurostat