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Bulgaria on Doorstep of Eurozone Conference

UPDATED Christine Lagarde: Eurozone Accession Is Beginning of Journey, Not Destination

Christine Lagarde: Eurozone Accession Is Beginning of Journey, Not Destination
Christine Lagarde: Eurozone Accession Is Beginning of Journey, Not Destination
ECB President Christine Lagarde speaking at a high-level conference on Bulgaria's accession to the eurozone, Sofia, October 4, 2025 (BTA Photo/Milena Stoykova)
Sofia,  
04.11.2025 10:58 | UPDATED 04.11.2025 11:43
 (BTA)
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Every country that joined the eurozone had the same anxiety as Bulgaria, European Central Bank Governor Christine Lagarde said here Tuesday. She was among the speakers at a high-level conference in Sofia titled “Bulgaria on the Doorstep of the Eurozone”. The event, organized by the Finance Ministry and the Bulgarian National Bank is part of the communication campaign for the introduction of the euro in Bulgaria as of January 1, 2026. 

“Every country that joined in had the same trepidation, the same anxiety, and we thought it is not going to work, we thought we would lose sovereignty, we thought it would be more expensive, “ she said.

She also said that eurozone entry is not a destination and Bulgaria will not be at a destination on January 1: it is the beginning of a journey of continued reforms. "Bulgaria has come a long way and a lot of hard work was done. It is a huge big step you are reaching but it is the beginning of a journey, it is not destination."

Two clear benefits

She outlined some “clear benefits of joining the euro”, to use her own words. She focused on two: prosperity and security. 

Dwelling on prosperity, she said that over the past decade, GDP per capita of Bulgaria has risen from 1/3 of the average of the eurozone to almost 2/3 today. The remaining 1/3 to target is the goal, she said.

She argued that whatever prosperity thus far as built on deep integration with the EU economy and the eurozone. By way of example, she mentioned that 65% of Bulgarian export goes to EU and 45% of that to the eurozone.

For Bulgarian firms, there will be zero conversion cost when exporting to their European customers. Small and medium enterprises will save BGN 1 billion in conversion costs alone. These savings can be invested in growth, innovation and development, Lagarde argued.

Furthermore, euro adoption will open the door wider to capital markets, and that would mean lower funding costs, she added.

These benefits are visible in Bulgaria’s approved credit ratings and narrower sovereign spreads.

Dwelling on the second benefit, security, she said: "We are living in a much more volatile and fragmented world with constant external shocks. For a small and open economy as Bulgaria’s, when nearly one in two jobs depends on external demand, that exposure to external shocks can be particularly acute". She argued that the euro with its institutional credibility is a strong shield that will protect Bulgarian firms. 

Fears and risks

The ECB President went on to addressed the fears and risks related to euro adoption.

The first is the fear of losing sovereignty, of which she said: "Joining the euro is not a loss of sovereignty, it is a gain. As of January 1, I will have the pleasure of welcoming with great fanfare [Bulgarian central bank Governor] Dimitar Radev at the ECB table with exactly the same weight as the others. Your governor’s voice will actually matter and your voice will be listed to. Bulgaria will not be following orders."

Of the second fear, price increases, said she it is not unfounded "because we have seen it happen". "But because we have seen it happen, your government know they can take measures prevent it," she added. She said that authorities on all levels need to make sure the rule is respected and the conversion rate is strictly applied. She urged people to be active and check the conversion rate, and said that vigilance is necessary, and it is everyone’s responsibility, not just for the authorities.

The third risk she underscored was one that has been seen in countries that have made a huge effort to reach accession but then fatigue sets in. "That would be a real mistake," she said arguing that the countries that continued to work hard showed higher level of integration. "Do not fall pray to that fatigue, carry on because the reward will be significant!" Lagarde told the audience.

On a more personal the ECB President said that it will be a special moment for her as Bulgaria joins the eurozone at the start of 2026. “On January 1 my heart will beat for you, Bulgaria, as I celebrate my 70th birthday. It will be a special moment, I can assure you.”

/NF/

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By 22:36 on 06.11.2025 Today`s news

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