Cash machines in Bulgaria began dispensing euros for the first time on Thursday, after the former communist nation joined the euro currency union as its 21st member state, the Associated Press reported.
In the capital, Sofia, cash machines dispensed brand new euro banknotes, replacing the lev for withdrawals. The lev will still be in use for cash payments in January, but people will receive only euros in change, according to the AP.
Bulgaria’s euro switch is also part of its longer arc of integration with the European Union. The country joined the bloc in 2007, and joining the European single-currency system represents deeper EU integration following Bulgaria’s 1989 transition from a Soviet-style economy to democracy and free markets.
The AP said the milestone is arriving amid political instability. It reported that the conservative-led government was forced to resign earlier this month after nationwide anti-corruption protests.
The resignation left Bulgaria without a regular budget for next year, the AP reported, hampering reforms and the use of EU support funds, which it said has helped fuel protests. The AP also said ordinary people have expressed skepticism amid fears of price rises.
The government had brought inflation down to 2.7% earlier this year to comply with EU rules and win approval from EU leaders, the AP reported. It noted that the euro adoption campaign is unfolding amid concerns about how prices and economic conditions could change.
The AP also described how nationalist and pro-Russian groups in Bulgaria have exploited fears about the euro switch, allegedly warning it could lead to more poverty and a loss of national identity. It said EU countries commit to the euro when joining the bloc, but that actual adoption can take years.
It added that Croatia was the last EU member to adopt the euro, in 2023.
AI-generated news article; CC0 (public domain). Generated by Main Street Independent’s News Article Generator framework.