National Bank Governor Radev: Discipline, Preparation, Trust Are Key Factors for Bulgaria's Successful Euro Adoption

Bulgarian National Bank (BNB) Governor Dimitar Radev said discipline, preparation and trust are the three key factors behind Bulgaria's successful adoption of the euro from January 1, 2026. He participated in a high-level event organized by the Atlantic Council during the IMF-World Bank Spring Meetings in Washington, DC.

Radev said Bulgaria's adoption of the euro was not a last-minute decision but the natural conclusion of a long process spanning decades rather than years. The main lesson from Bulgaria's experience is that you do not adopt the euro in order to gain trust - you adopt it when you already have trust. In other words, the euro does not create trust, it consolidates it, Radev said in remarks focused on the prospects for expanding and deepening the euro area.

Bulgaria's currency board arrangement, in place for nearly 30 years, had helped instil fiscal and monetary discipline, reflected in one of the lowest public debt-to-GDP ratios in Europe, Radev said. The time spent in the Exchange Rate Mechanism II (ERM II) and the EU Banking Union had been crucial in preparing Bulgaria for the euro area, helping align policies, build capacity and strengthen confidence, so that when the moment came to transition, the process worked.

Trust is essential, as the process cannot function without public confidence, according to Dimitar Radev. Attention has been focused on transparency and safeguards despite the country's complex political environment, he said, pointing to encouraging signs including the limited inflation impact from euro adoption and growing public support for the currency.