EU Confidential All about the €€€: How Bulgaria’s euro dreams could become a nightmare
Jun 13, 2025
Izabella Kaminska, a senior editor at POLITICO specializing in finance, and Gabrielius Landsbergis, Lithuania’s former foreign minister, discuss Bulgaria's contentious move to adopt the euro and its potential risks. Kaminska highlights the divided opinions in Sofia about the euro's economic impact, drawing comparisons to Greece and Italy. Landsbergis emphasizes Europe’s complacency regarding Ukraine, advocating for stronger support amidst geopolitical tensions. He also hints at his future projects, including a memoir, while navigating the political landscape.
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Bulgaria's Eurozone Entry Debate
- Bulgaria has met the official economic criteria to adopt the euro but with some controversial government price controls influencing inflation data.
- Joining the euro offers lower borrowing costs and boosts trade, investment, and financial security, but readiness remains debated.
Lessons from Greece and Italy
- The Greece and Italy eurozone crises teach that joining without readiness risks severe debt problems and economic instability.
- Some economists argue Bulgaria should delay euro adoption and follow Poland's example of strong economy outside the eurozone.
Eurozone Expansion's Political Impact
- Bulgaria's euro adoption is viewed by Brussels as a success showing EU integration promotes wealth and financial stability.
- Expanding the eurozone enhances the euro's international role, which is key for its geopolitical strength.