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Bulgaria adopts the euro

02 Jan 2026 GS 2 International Organizations & Bodies
Bulgaria adopts the euro Click to view full image

Context

  • Bulgaria has officially adopted the euro, becoming the 21st member of the eurozone.

  • The switch happened nearly 20 years after Bulgaria joined the European Union (EU).

  • Bulgaria replaced its national currency, the lev, which had been in use since the late 19th century.

         

Key facts

  • New currency: Euro (€)

  • Old currency: Bulgarian lev

  • Eurozone member number: 21st

  • Capital: Sofia

  • Population: ~6.4 million

  • EU membership: Since 2007

EU membership vs eurozone membership

1. European Union (EU) membership

  • The European Union is a political and economic union of European countries.

  • EU members:

    • Participate in the single market (free movement of goods, services, capital, people)

    • Follow common EU policies on trade, agriculture, competition, etc.

  • Currency:

    • EU members may or may not use the euro.

    • They can keep their national currency.

Example:

  • Poland, Hungary, Czech Republic → EU members but not in eurozone.

2. Eurozone membership

  • The Eurozone consists of EU countries that have adopted the euro (€) as their official currency.

  • Eurozone members:

    • Share a common currency (euro)

    • Follow a common monetary policy decided by the European Central Bank (ECB)

  • Countries must meet convergence (Maastricht) criteria:

    • Low inflation

    • Fiscal deficit ≤ 3% of GDP

    • Public debt ≤ 60% of GDP

    • Exchange rate stability

As of now, the European Union has 27 members, while the eurozone has 21 members.
Therefore, 6 EU countries do not use the euro and retain their national currencies.

List of EU members outside the eurozone

  1. Denmark

    • Has a formal opt-out from adopting the euro

    • Uses the Danish krone

  2. Sweden

    • No formal opt-out, but rejected the euro in a 2003 referendum

    • Uses the Swedish krona

  3. Poland

    • Has not yet met political/economic consensus

    • Uses the Polish zloty

  4. Hungary

    • Retains monetary sovereignty

    • Uses the Hungarian forint

  5. Czech Republic

    • Euro adoption postponed

    • Uses the Czech koruna

  6. Romania

    • Plans euro adoption in the future

    • Uses the Romanian leu

EU and eurozone

European Union (EU)

  • Started: 1993

  • How: Came into existence with the Maastricht Treaty

  • Nature: Political and economic union

  • Earlier form: Evolved from the European Economic Community (EEC) (1957)

EU officially began in 1993

Eurozone

  • Euro introduced (non-cash): 1999

    • Used for electronic transactions and accounting

  • Euro notes and coins introduced: 2002

  • Nature: Monetary union of EU countries using the euro

Eurozone effectively started in 1999
Common currency in daily use since 2002

Prelims Practice MCQs

Q. With reference to the European Union (EU), consider the following statements:

  1. The EU formally came into existence in 1993.

  2. The Maastricht Treaty provided the legal foundation for the EU.

  3. The European Union replaced the European Economic Community in 1957.

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)
Explanation:

  • Statements 1 and 2 are correct.

  • Statement 3 is incorrect; the EEC was established in 1957, but the EU replaced it only in 1993.

Q. Consider the following statements regarding the eurozone:

  1. All members of the eurozone are members of the European Union.

  2. All members of the European Union are members of the eurozone.

  3. The eurozone began before the formal establishment of the European Union.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (a)
Explanation:

  • Statement 1 is correct.

  • Statement 2 is incorrect (not all EU members use the euro).

  • Statement 3 is incorrect (eurozone began in 1999, EU in 1993).



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