Bulgaria to join euro area on 1 January 2026 • Hacker News Board

Re: Bulgaria to join euro area on 1 January 2026

#71

Post by akmarinov » Wed, Jul 09, 2025, 5:14 AM UTC

ingohelpinger wrote: post #49

jmyeet wrote: post #2

This 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…

exactly, Bulgarian here, born in Germany in 1988, so I lived with the DM and then experienced the Euro throughout my entire life, until 2023 when I decided to go back to BG. The Euro will make BG a debt slave on Germanys and France terms. Watch critical infrastructure being sold to China or who knows, just like Greece had to do it.

Since Bulgaria was already in a currency board with the Euro, they already were a “debt slave”, so nothing changes there.

Re: Bulgaria to join euro area on 1 January 2026

#72

Post by keiferski » Wed, Jul 09, 2025, 5:17 AM UTC

alexey-salmin wrote: post #54

keiferski wrote: post #31

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.

I haven't been to Burgas but Montenegro still feels rather different IMO. Probably it has to do more with local culture and with GDP per capita rather than the currency itself (even though you're right that the latter may slowly evolve thanks to easier inflow of money).

Depends on where you’re at in Montenegro. Parts of it are definitely still different (the capital, Ulcinj and the south, rural areas) but some of the coastal cities are becoming very generic global luxury stores and mass tourism.

At least - that was my experience spending a couple months there 2-3 years ago.

Re: Bulgaria to join euro area on 1 January 2026

#73

Post by cik » Wed, Jul 09, 2025, 5:19 AM UTC

decimalenough wrote: post #22

Credit 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…

I think there's a reality for (visiting) consumers, Schengen has more value than the currency union, at least if you're not a user of cash.

My experiences in non-Euro, Schengen countries is that all payment terminals offer me the choice to pay in Euro or the local currency. In many cases in tourist areas (of Czechia, Poland, and Bulgaria) I only encountered terminals that asked for payment in Euro.

Re: Bulgaria to join euro area on 1 January 2026

#74

Post by oaiey » Wed, Jul 09, 2025, 5:19 AM UTC

oaiey wrote: post #42

carabiner wrote: post #39

Earlier quoted context omitted.

The crazy thing is that it was US pressure on Europe in the late '90s that led to adoption of the euro.

I am not aware of this. Can you give us a hint what that was?

Euro was part of the Maastricht treaty which formed the EU as we know it today in 1992. The euro part was a power move of France against a reunited Germany which back story origins in the early 80s. Obviously backfired.

Re: Bulgaria to join euro area on 1 January 2026

#75

Post by jochem9 » Wed, Jul 09, 2025, 5:21 AM UTC

crossroadsguy wrote: post #60

decimalenough wrote: post #22

Credit 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…

I have always felt it was a mistake allowing countries inside the EU but not the currency. But when one looks at the dates - and they are 6 years apart - it becomes clear why. I wonder how it would have turned out had Euro and EU been launched together. Would it have been "a package" or optional?

All EU countries are required to join the euro. This was agreed in the 1992 Maastricht treaty when the EU was founded (and the EMU, which was the starting point of the euro). Only Denmark and the UK negotiated an opt-out at the time.

Only problem is that there are no deadlines and it's up to the country to make a plan for adopting the euro.

Re: Bulgaria to join euro area on 1 January 2026

#76

Post by legulere » Wed, Jul 09, 2025, 5:21 AM UTC

smallstepforman wrote: post #70

If abandoning your own currency and adopting Euros was such a big deal, the UK would have done it decades ago (while it was still a part of the EU). This benefits the bigger economies, at the expense of the smaller economies. Any fiscal policy is dictated by the bigger countries, and with identical currencies, the only policy left for Bulgarians is to cut wages in public sector. This will impact local economy, and ri…

The Bulgarian Lev is already pegged to the euro and was pegged to the DM before

Re: Bulgaria to join euro area on 1 January 2026

#77

Post by ingohelpinger » Wed, Jul 09, 2025, 5:24 AM UTC

jochem9 wrote: post #75

crossroadsguy wrote: post #60

Earlier quoted context omitted.

I have always felt it was a mistake allowing countries inside the EU but not the currency. But when one looks at the dates - and they are 6 years apart - it becomes clear why. I wonder how it would have turned out had Euro and EU been launched together. Would it have been "a package" or optional?

All EU countries are required to join the euro. This was agreed in the 1992 Maastricht treaty when the EU was founded (and the EMU, which was the starting point of the euro). Only Denmark and the UK negotiated an opt-out at the time. Only problem is that there are no deadlines and it's up to the country to make a plan for adopting the euro.

the same treaty says state financing through the ECB is illegal, but they do it anyway.

Re: Bulgaria to join euro area on 1 January 2026

#78

Post by ingohelpinger » Wed, Jul 09, 2025, 5:25 AM UTC

ako wrote: post #62

ingohelpinger wrote: post #43

the Euro has lost almost half of its purchasing power since its creation. bulgarians want the Euro so much, that they have to run tv ads, "we will become more wealthy by introducing the Euro", what? how will that happen, if you need more money to buy same or less products/services? lmao

Same for USD and other major currencies, as most countries have inflation around 2%. Only currency that has done significantly better is the swiss frank.

if you think inflation rate is at 2% you must be living under a rock

Re: Bulgaria to join euro area on 1 January 2026

#79

Post by W3zzy » Wed, Jul 09, 2025, 5:27 AM UTC

keiferski wrote: post #72

alexey-salmin wrote: post #54

Earlier quoted context omitted.

I haven't been to Burgas but Montenegro still feels rather different IMO. Probably it has to do more with local culture and with GDP per capita rather than the currency itself (even though you're right that the latter may slowly evolve thanks to easier inflow of money).

Depends on where you’re at in Montenegro. Parts of it are definitely still different (the capital, Ulcinj and the south, rural areas) but some of the coastal cities are becoming very generic global luxury stores and mass tourism. At least - that was my experience spending a couple months there 2-3 years ago.

True, it felt a whole lot like Croatia near the coast of Montenegro save for the complemantairy ketchup they offer with pizza.

Re: Bulgaria to join euro area on 1 January 2026

#80

Post by Maxion » Wed, Jul 09, 2025, 5:27 AM UTC

smallstepforman wrote: post #70

If abandoning your own currency and adopting Euros was such a big deal, the UK would have done it decades ago (while it was still a part of the EU). This benefits the bigger economies, at the expense of the smaller economies. Any fiscal policy is dictated by the bigger countries, and with identical currencies, the only policy left for Bulgarians is to cut wages in public sector. This will impact local economy, and ri…

I wonder why this comment is at the top of the HN post.

Over the years I've seen a lot of missinformation on this topic that follows pretty much this exact train of thought. Why would countries join the EU and the Euro if it didn't benefit them?

The baltics have all grown massively since the 90s when they became independent, and even though they all were on nice trajectories they still all decided to join the EU and the Euro.

Bringing up the UK as some model for all other "small" european countrie sounds odd. The UK joined the EEC specifically because it had slower economic growth than the other large EU countries.

The UK, and specifically the city of london, with its huge international financial pull has a very different place in the global economy than Bulgaria...