Public support for the euro is increasing in Bulgaria following the country’s adoption of the currency earlier this year, with the ongoing conflict involving Iran potentially strengthening that trend, the central bank governor said in an interview to Reuters.
Bulgaria joined the eurozone on January 1, and initial concerns over inflation have so far proved limited, according to officials.
Inflation impact smaller than expected
Central bank governor Dimitar Radev said the effect of adopting the euro resulted in only a modest and largely one-off increase in inflation, estimated at between 0.3 and 0.4 percentage points.
He noted that the impact was broadly comparable to Croatia’s experience and that inflation in Bulgaria actually fell to 2.3% in January from 3.5% the previous month, remaining close to eurozone levels in March.
Public and business support increasing
Radev said the limited inflation impact has helped improve public sentiment toward the euro.
Household support rose from 45% before adoption to 54% afterward, while support among businesses—already strong—has climbed into the 70% range.
Iran war seen reinforcing confidence in euro
According to Radev, the war involving Iran may further boost support as households increasingly view eurozone membership as offering greater economic stability.
He said the current environment is making the benefits of being part of the currency union more visible, encouraging more people to back the euro.
Political debate over euro adoption continues
Support for the euro had been relatively low ahead of the switch, with some political figures warning that adoption could lead to higher prices and reduced affordability in one of the European Union’s poorest countries.
