President Radev Voices Caution Over Euro Adoption, Warns of Price Hikes and Social Risks
Sofia, The Gulf Observer: President Rumen Radev has once again refrained from clearly endorsing or opposing Bulgaria’s adoption of the euro, instead raising concerns over the potential economic and social consequences of the transition.
Speaking to the media, Radev echoed apprehensions commonly voiced by pro-Russian political factions, warning that the introduction of the euro could lead to notable price increases, particularly in the months leading up to the official changeover. He acknowledged that while the government has proposed safeguards for the post-adoption period, experiences from other eurozone entrants suggest that pre-adoption price surges are also a significant concern.
“The government talks about protection after the euro is introduced, but we’ve seen in other countries that prices tend to jump even before that happens,” Radev said, expressing hope that Bulgaria might avoid such outcomes.
However, historical data from countries such as Croatia, Lithuania, Latvia, and Slovakia paints a different picture. In those cases, the shift to the euro brought only modest, one-time inflationary impacts, ranging from 0.2% to 0.4%, mostly affecting services and frequently bought items. Moreover, income levels in those countries rose following the adoption.
Still, Radev emphasized that the Bulgarian government must do more to prepare socially and economically. He accused the authorities of focusing exclusively on technical preparations — like adapting banks and post offices — while neglecting the potential social fallout.
Shifting the conversation to political responsibility, he criticized the government’s request for a convergence report from the European Commission, claiming it lacks sufficient public engagement and transparency. He also defended his earlier referendum proposal on the euro, currently under review by the Constitutional Court, stating that it is not a rejection of the euro itself but rather a call for stronger institutional accountability.
Radev also slammed the 2025 state budget, saying it lacks financial buffers or contingency plans to offset any adverse effects from currency transition. In his view, this leaves ordinary Bulgarians vulnerable if inflation rises unexpectedly.
“The public must stay vigilant and closely monitor for unjustified price hikes,” Radev warned, adding that without immediate protective measures, Bulgaria risks splitting into two economic tiers — further deepening social inequality.
His remarks underscore growing public unease surrounding Bulgaria’s eurozone ambitions, even as government officials continue to push ahead with the technical and legislative steps needed for adoption.
