SOFIA : The transition will see Bulgaria replace its national currency with the single European currency, a step that Christine Lagarde, President of the European Central Bank, said would bring “significant” gains to the country. These include easier cross-border trade, lower financing costs and enhanced price stability.

Lagarde has highlighted tangible savings for businesses, noting that small and medium-sized enterprises could collectively save around €500 million in foreign exchange fees following the switch to the euro. Such reductions in transaction costs are expected to improve competitiveness and simplify trade within the European Union.

Tourism is also projected to benefit from the change, particularly in the Black Sea nation where the sector is estimated to contribute about 8 per cent to gross domestic product this year. A common currency is expected to make travel and spending easier for visitors from across the Eurozone.

Addressing public concerns over price rises, Lagarde downplayed the risks, stating that any inflationary impact would likely be “minor and short-term.” She added that in previous euro adoptions, price effects typically ranged between 0.2 and 0.4 percentage points, easing fears of sustained cost-of-living pressures as Bulgaria prepares to take its place in the Eurozone.