One of the biggest effects of this will probably be increased Western tourism to the resort cities on the Black Sea coast. Which is good, I guess, for the local economy - but I did really enjoy how Burgas felt different from the typical Western coastal resort city when I visited. I hope it doesn’t lose that uniqueness as it integrates into the wider EU economy.
Bulgaria to join euro area on 1 January 2026
31–40 of 340 posts
Re: Bulgaria to join euro area on 1 January 2026
#32Earlier quoted context omitted.
Covid sort of showed everyone how hard it is to survive as a small economy in the modern highly interdependent world. One small disruptor to a core component of a small economy and they are standing outside the IMF to survive. There are currently 50-60 small countries that depend on borrowing from the IMF (that too in dollars paying interest in dollars - given competition levels guess what dollar generating capacitie…
> Yet you wont find any of those subunits complaining about their central bank setting monetary policy. This is ludicrously wrong of India, and I understand enough of human nature and economics that I’d be surprised if it were true of China, though it may be more suppressed. Monetary policy is government policy. The ruling party is seldom uniformly popular across their entire domain. Perhaps you’re more familiar with…
But is anyone asking for their own local currency or central bank? If not why not?
Re: Bulgaria to join euro area on 1 January 2026
#33Earlier quoted context omitted.
Two things that surprised me when I spent a couple of months in Bulgaria: * Bulgarian support for the EU is pretty low and people didn't think it made their life much better * Bulgarian support for Russia is very high, like 50%, probably due to their historic help in kicking out the Turks
Also the experience of Greece not too far back and the austerity imposed by Germany is not quite forgotten. Varoufakis[1] can attest to its severity. The Greeks voted against it but Germany imposed its will. [1] https://jacobin.com/2025/07/yanis-varoufakis-on-the-legacy-o...
This is nonsense. Not mentioned is that Greece has borrowed excessively and had defaulted on its loans. A bailout was organized by the EU and IMF with terms that Greece had every opportunity to reject. No one forced anything on Greece. The referendum was not binding and political theater for the government of the time.
That Greece accepted the terms reflected the reality that the alternative was much worse and would have caused great suffering for Greeks.
Re: Bulgaria to join euro area on 1 January 2026
#34This will likely come with a one-time significant increase in inflation, at least based on other European countries. When Germany converted to the Euro, the conversion rate was (IIRC) about ~2 DM to the Euro but from what I recall, a lot of everyday things went from costing 7 DM to 7 euro, effectively doubling in price. IIRC France was similar (ie ~6.5 francs to the Euro but 10 Francs went to 3 euro, etc). I've tried…
Wasn't the lev pinned to euro for years, at the stable rate of 1 lev = 0.5 euro? Why the switching to euro would affect inflation much?
Re: Bulgaria to join euro area on 1 January 2026
#35Earlier quoted context omitted.
Covid sort of showed everyone how hard it is to survive as a small economy in the modern highly interdependent world. One small disruptor to a core component of a small economy and they are standing outside the IMF to survive. There are currently 50-60 small countries that depend on borrowing from the IMF (that too in dollars paying interest in dollars - given competition levels guess what dollar generating capacitie…
> Yet you wont find any of those subunits complaining about their central bank setting monetary policy I mean and also the US, but the key difference here is that those are also cohesive countries where wealth transfers between different areas is the norm. Much less problematic if a policy is better for New York than Alabama if you know for sure that the federal government is going to make sure Alabama doesn't get sc…
Ofcourse they will complain but they also learn to stay rich and be a large power you have to pay attention to the needs of others. If you don't, others will step into that space and the less others depend on you, the less relevant you become. Its like a learning process that takes its own sweet time.
Re: Bulgaria to join euro area on 1 January 2026
#36Credit where credit is due: the EU gets a lot of flack for being bureaucratic, hidebound, sclerotic, whatever, but the single currency has been a success and it's still expanding, 26 years after its creation. Also, the addition of Bulgaria means it's almost possible to travel from Spain to Greece entirely through the Eurozone, with only a thin sliver of Serbia or Macedonia in the way. (Assuming we include Montenegro…
https://en.wikipedia.org/wiki/Potential_enlargement_of_the_E...
I think you meant this: https://en.wikipedia.org/wiki/Enlargement_of_the_eurozone
Re: Bulgaria to join euro area on 1 January 2026
#37Earlier quoted context omitted.
Covid sort of showed everyone how hard it is to survive as a small economy in the modern highly interdependent world. One small disruptor to a core component of a small economy and they are standing outside the IMF to survive. There are currently 50-60 small countries that depend on borrowing from the IMF (that too in dollars paying interest in dollars - given competition levels guess what dollar generating capacitie…
> Yet you wont find any of those subunits complaining about their central bank setting monetary policy I mean and also the US, but the key difference here is that those are also cohesive countries where wealth transfers between different areas is the norm. Much less problematic if a policy is better for New York than Alabama if you know for sure that the federal government is going to make sure Alabama doesn't get sc…
[deleted]
Re: Bulgaria to join euro area on 1 January 2026
#38Earlier quoted context omitted.
> Yet you wont find any of those subunits complaining about their central bank setting monetary policy. This is ludicrously wrong of India, and I understand enough of human nature and economics that I’d be surprised if it were true of China, though it may be more suppressed. Monetary policy is government policy. The ruling party is seldom uniformly popular across their entire domain. Perhaps you’re more familiar with…
But is anyone asking for their own local currency or central bank? If not why not?
In some places I gather that pretty much happened during https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetis.... (I happened to be in India at the time, but where I was it was more just extreme discontent with resignation, rather than threatening fracture.)
Re: Bulgaria to join euro area on 1 January 2026
#39Credit where credit is due: the EU gets a lot of flack for being bureaucratic, hidebound, sclerotic, whatever, but the single currency has been a success and it's still expanding, 26 years after its creation. Also, the addition of Bulgaria means it's almost possible to travel from Spain to Greece entirely through the Eurozone, with only a thin sliver of Serbia or Macedonia in the way. (Assuming we include Montenegro…
The crazy thing is that it was US pressure on Europe in the late '90s that led to adoption of the euro.
Re: Bulgaria to join euro area on 1 January 2026
#40Earlier quoted context omitted.
In which region is Greece a leading economy?
In a region composed of Greece, North Macedonia and Cyprus.
Doesn't sound right https://en.m.wikipedia.org/wiki/List_of_sovereign_states_in_...
Cyprus ranks 17th and Greece 32nd