Latest news with #lev
Al Arabiya
28-06-2025
- Business
- Al Arabiya
Thousands Protest Bulgaria's Euro Adoption and Call for a Referendum
Days before Bulgaria was expected to become the 21st member of the eurozone, opponents of the move geared up Saturday for a final battle to change the schedule. Thousands of protesters gathered on a central square in downtown Sofia to protest government plans to adopt the euro and to demand a referendum on the new currency. The European Union has given the green light for Bulgaria to adopt the euro starting Jan. 1, 2026. The protesters, led by civic groups, nationalist and pro-Russian parties known for their opposition to the euro, declared that after the rally they intended to set up a tent camp on the central square, dubbed 'Town of the lev,' after the name of the national currency. On a platform for speakers hung a huge banner that read 'The battle for the Bulgarian lev is the last battle for Bulgaria.' The leader of the pro-Russian Vazrazhdane party, Kostadin Kostadinov, told the protesters that the country will be stripped of its currency. 'Someone else will decide how we spend our money; the Bulgarian budget will be approved by the European Central Bank,' he said. 'This is an anti-state coup; this is treason.' Kostadinov announced that lawmakers from Germany, Lithuania, Romania, the Czech Republic, Slovakia, and Hungary have joined the event to support the protest. Ahead of the demonstration, Vazrazhdane submitted in Parliament a motion for a vote of no confidence in the current government, accusing it of failing to undertake necessary reforms to restore stability to public finances and working for the forceful adoption of the euro. Parliament will vote on the motion next week, but the pro-EU government coalition is expected to survive. The Balkan country joined the European Union in 2007 and is now on the final stretch of its accession to the eurozone. The last institutional hurdle is the approval from both the European Parliament in Strasbourg and the Economic and Financial Affairs Council in Brussels, scheduled for July 8. These steps come after the European Council gave its clear endorsement of Bulgaria joining the eurozone on Jan. 1, 2026. During its almost two-decades-long EU membership, Bulgaria has been plagued by political instability and corruption that have fueled euroskepticism among its 6.4 million citizens. Now, scores of false claims by opponents of the eurozone have been published on social networks, feeding fears of economic changes that they say could bring more poverty. Economists say joining the euro will not bring massive change to Bulgaria's economy in the short run. That's because the government has pegged the currency to the euro by law at a fixed rate of 1 lev for every 51 euro cents.
The Independent
28-06-2025
- Business
- The Independent
Thousands protest Bulgaria's euro adoption and call for a referendum
Days before Bulgaria was expected to become the 21st member of the eurozone, opponents of the move geared up Saturday for a final battle to change the schedule. Thousands of protesters gathered on a central square in downtown Sofia to protest government plans to adopt the euro and to demand a referendum on the new currency. The European Union has given the green light for Bulgaria to adopt the euro starting Jan. 1. The protesters, led by civic groups, nationalist and pro-Russian parties known for their opposition to the euro, declared that after the rally they intended to set up a tent camp on the central square, dubbed 'Town of the lev,' after the name of the national currency. On a platform for speakers hung a huge banner that read 'The battle for the Bulgarian lev is the last battle for Bulgaria.' The leader of the pro-Russian Vazrazhdane party Kostadin Kostadinov told the protesters that the country will be stripped of its currency. 'Someone else will decide how we spend our money, the Bulgarian budget will be approved by the European Central Bank," he said. 'This is an anti-state coup, this is treason.' Kostadinov announced that lawmakers from Germany, Lithuania, Romania, the Czech Republic, Slovakia and Hungary have joined the event to support the protest. Ahead of the demonstration, Vazrazhdane submitted in Parliament a motion for a vote of no confidence in the current government, accusing it of failing to undertake necessary reforms to restore stability to public finances and working for the forceful adoption of the euro. Parliament will vote on the motion next week, but the pro-EU government coalition is expected to survive. The Balkan country joined the European Union in 2007 and is now on the final stretch of its accession to the eurozone. The last institutional hurdle is the approval from both the European Parliament in Strasbourg and the Economic and Financial Affairs Council in Brussels, scheduled for July 8. These steps come after the European Council gave its clear endorsement of Bulgaria joining the eurozone on Jan. 1, 2026. During its almost two decades-long EU membership, Bulgaria has been plagued by political instability and corruption that have fueled euroscepticism among its 6.4 million citizens. Now, scores of false claims by opponents of the eurozone have been published on social networks feeding fears of economic changes that they say could bring more poverty. Economists say joining the euro will not bring massive change to Bulgaria's economy in the short run. That's because the government has pegged the currency to the euro by law, at a fixed rate of 1 lev for every 51 eurocents.
Yahoo
19-06-2025
- Business
- Yahoo
Eurozone finance ministers give green light for Bulgaria to use euro
Eurozone countries on Thursday gave Bulgaria the green light to use the euro, with Sofia set to introduce the common currency in January 2026. Bulgaria is set to become the 21st EU member state to use the euro after finance ministers of eurozone countries gave their approval to the European Commission and the European Central Bank (ECB). The commission backed the move earlier this month, concluding that Bulgaria fulfils the necessary requirements to join the monetary union. The criteria for joining include price stability, sound public finances and stable exchange rates. Bulgaria has been a member of the EU since 2007 and had previously planned to replace its national currency, the lev, with the euro in 2024, but the adoption was postponed due to a comparatively high inflation rate of 9.5% at the time. The commission recently said it expects an inflation rate of 3.6% for Bulgaria in the current year and 1.8% in 2026. In Bulgaria, the possible introduction of the euro has been accompanied by fierce protests. According to an opinion poll conducted by the Bulgarian Mjara institute in May, more than half of adults (54.9%) are against the introduction of the euro in 2026, while 34.4% are in favour of joining. The next step is for the finance ministers of all EU countries to approve the plans before EU leaders discuss Bulgaria's accession to the eurozone at the end of June. Finally, after consulting the European Parliament and the ECB, the member states must adopt the necessary legal acts at finance minister level.
CTV News
03-06-2025
- Business
- CTV News
Bulgaria is close to joining the euro currency but faces disinformation and fear
SOFIA, Bulgaria — Bulgaria is close to realizing its decades-old goal of joining the euro currency union and deepening ties with the more prosperous countries of Western Europe. But the government faces a populist backlash against the shared currency on the eve of a key decision by European Union authorities. Fears of inflation, poverty and the unknown are mingling with disinformation spread on social media that aims to turn people against the euro. The discontent tracks with increased support for populist and anti-EU parties across Europe, which is exploited by nationalist and pro-Russian politicians in a country that remains one of Europe's poorest and most afflicted with corruption. 'Adopting the euro will make us feel the threshold of poverty. After all, prices will be in euros,' said 78-year-old retiree Tanya Ignatova. 'Bulgaria is not ready for the euro. Someday we may be ready, but not now,' said another retiree, Mario Georgiev. Several thousand people rallied against the euro in the capital on Saturday, urging a referendum on whether to transition from the lev currency to the euro. The head of the pro-Russian Varazhdane party, Kostadin Kostadinov, told the crowd that 'Bulgaria has risen and declared: Freedom, we choose the Bulgarian lev!' Many do support the euro Others in Bulgaria say the country already benefits from EU membership and it does not matter what the currency is. 'We have inflation now and we will have it in the future,' said 26-year-old Konstantin Bozhinov. Aiming at deepening European integration amid growing geopolitical tensions, the government is pressing ahead. It has asked for a review of whether it meets the requirements of low inflation, sound government finances and legal conformity to EU institutions. On Wednesday, the European Commission will announce the results. If the commission gives a green light, other member states will decide on Bulgaria's candidacy in the coming weeks. At the last review in 2022, Bulgaria failed on the inflation requirement. Inflation has since fallen. President Rumen Radev has encouraged the anti-euro voices by proposing a referendum on the currency, citing public concerns over inflation and purchasing power. That followed a protest in February that saw the offices of the EU's executive commission in Sofia spattered with red paint and its entrance set on fire. The president's proposal was turned down by the pro-European majority in parliament, which accused Radev of acting in favor of Russia with his last-minute attempt to sabotage the euro adoption. According to the EU's multi-country Eurobarometer survey released last week, 50% of Bulgarians are against the adoption of the euro, while 43% are in favour. In contrast, trust in the euro continues to grow across the rest of the EU. Bulgaria joined the EU in 2007. It has been plagued by political instability and corruption that have fueled euroscepticism among its 6.4 million citizens. Analysts say disinformation campaigns from abroad have fed fears of economic changes that could bring more poverty. Scores of false claims by opponents of the eurozone have been published on social networks. One claim says the EU plans to take away people's savings if they fail to spend them within a certain period. Another claims that plans to introduce a digital version of the euro are part of a plan to control everyone. 'There is a powerful brainwashing of the average Bulgarian. Illusory fears are being spread, lies are being told wholesale, unscrupulously and brazenly,' said Ognyan Minchev, director of the Institute for Regional and International Studies in Sofia. Risks and rewards Economists say joining the euro will not bring massive change to Bulgaria's economy in the short run. That's because the government has pegged the currency to the euro by law, at a fixed rate of 1 lev for every 51 euro cents. Joining the euro can bring lower borrowing costs, greater ease in comparing domestic and foreign prices and no need to exchange money when vacationing in another euro country. More than that, it's a sign of integration into the EU and its large economy. Members get a seat on the European Central Bank's interest rate-setting committee. Countries agree to join the euro when they join the EU, but so far 20 of 27 members have taken the step. Croatia was the last to join in 2023. Bulgaria's government has very little debt, at 24.1% of GDP — the second lowest in the EU and well below the 60% level in euro membership criteria. That's a sharp contrast to its neighbor, Greece, which entered the euro in 1999 with high debt that was concealed through complex financial transactions. Greece's broken finances eventually triggered a eurozone-wide crisis. Bulgaria's government has been 'fiscally super conservative ... the risk of Bulgaria becoming a fiscal risk to the eurozone is essentially zero,' said Zsolt Darvas, senior fellow at the Bruegel think tank in Brussels. Fears of inflation are not entirely without basis. Experience in other countries shows that 'whenever there is a changeover from national currency to the euro, there is often a minor inflation effect, but it's typically less than 1%,' said Darvas Economists say a one-time increase occurs as service providers such as restaurants, which don't adjust prices as often as other sectors, take advantage of re-doing menus and price lists to implement hikes. Veselin Toshkov And David Mchugh, The Associated Press
Washington Post
03-06-2025
- Business
- Washington Post
Bulgaria is close to joining the euro currency but faces disinformation and fear
SOFIA, Bulgaria — Bulgaria is close to realizing its decades-old goal of joining the euro currency union and deepening ties with the more prosperous countries of Western Europe. But the government faces a populist backlash against the shared currency on the eve of a key decision by European Union authorities. Fears of inflation, poverty and the unknown are mingling with disinformation spread on social media that aims to turn people against the euro. The discontent tracks with increased support for populist and anti-EU parties across Europe, which is exploited by nationalist and pro-Russian politicians in a country that remains one of Europe's poorest and most afflicted with corruption. 'Adopting the euro will make us feel the threshold of poverty. After all, prices will be in euros,' said 78-year-old retiree Tanya Ignatova. 'Bulgaria is not ready for the euro. Someday we may be ready, but not now,' said another retiree, Mario Georgiev. Several thousand people rallied against the euro in the capital on Saturday, urging a referendum on whether to transition from the lev currency to the euro. The head of the pro-Russian Varazhdane party, Kostadin Kostadinov, told the crowd that 'Bulgaria has risen and declared: Freedom, we choose the Bulgarian lev!' Others in Bulgaria say the country already benefits from EU membership and it does not matter what the currency is. 'We have inflation now and we will have it in the future,' said 26-year-old Konstantin Bozhinov. Aiming at deepening European integration amid growing geopolitical tensions, the government is pressing ahead. It has asked for a review of whether it meets the requirements of low inflation, sound government finances and legal conformity to EU institutions. On Wednesday, the European Commission will announce the results. If the commission gives a green light, other member states will decide on Bulgaria's candidacy in the coming weeks. At the last review in 2022, Bulgaria failed on the inflation requirement. Inflation has since fallen. President Rumen Radev has encouraged the anti-euro voices by proposing a referendum on the currency, citing public concerns over inflation and purchasing power. That followed a protest in February that saw the offices of the EU's executive commission in Sofia spattered with red paint and its entrance set on fire. The president's proposal was turned down by the pro-European majority in parliament, which accused Radev of acting in favor of Russia with his last-minute attempt to sabotage the euro adoption. According to the EU's multi-country Eurobarometer survey released last week, 50% of Bulgarians are against the adoption of the euro, while 43% are in favor. In contrast, trust in the euro continues to grow across the rest of the EU. Bulgaria joined the EU in 2007. It has been plagued by political instability and corruption that have fueled euroscepticism among its 6.4 million citizens. Analysts say disinformation campaigns from abroad have fed fears of economic changes that could bring more poverty. Scores of false claims by opponents of the eurozone have been published on social networks. One claim says the EU plans to take away people's savings if they fail to spend them within a certain period. Another claims that plans to introduce a digital version of the euro are part of a plan to control everyone. 'There is a powerful brainwashing of the average Bulgarian. Illusory fears are being spread, lies are being told wholesale, unscrupulously and brazenly,' said Ognyan Minchev, director of the Institute for Regional and International Studies in Sofia. Economists say joining the euro will not bring massive change to Bulgaria's economy in the short run. That's because the government has pegged the currency to the euro by law, at a fixed rate of 1 lev for every 51 euro cents. Joining the euro can bring lower borrowing costs, greater ease in comparing domestic and foreign prices and no need to exchange money when vacationing in another euro country. More than that, it's a sign of integration into the EU and its large economy. Members get a seat on the European Central Bank's interest rate-setting committee. Countries agree to join the euro when they join the EU, but so far 20 of 27 members have taken the step. Croatia was the last to join in 2023. Bulgaria's government has very little debt, at 24.1% of GDP — the second lowest in the EU and well below the 60% level in euro membership criteria. That's a sharp contrast to its neighbor, Greece, which entered the euro in 1999 with high debt that was concealed through complex financial transactions. Greece's broken finances eventually triggered a eurozone-wide crisis. Bulgaria's government has been 'fiscally super conservative ... the risk of Bulgaria becoming a fiscal risk to the eurozone is essentially zero,' said Zsolt Darvas, senior fellow at the Bruegel think tank in Brussels. Fears of inflation are not entirely without basis. Experience in other countries shows that 'whenever there is a changeover from national currency to the euro, there is often a minor inflation effect, but it's typically less than 1%,' said Darvas Economists say a one-time increase occurs as service providers such as restaurants, which don't adjust prices as often as other sectors, take advantage of re-doing menus and price lists to implement hikes.
