Bulgaria will become the 21st country to switch to the euro when it enters the New Year on Thursday, amid concerns the move could usher in higher prices and add to political instability rattling the Balkan country.
When midnight strikes on Wednesday, Bulgaria will give up the lev currency, which has been in use since the late 19th century.
While successive governments in the country of 6.4 million people have advocated joining the euro, hoping that it will boost the economy of the European Union’s poorest member, reinforce ties to the West and protect against Russia’s influence. Some have opposed the switch however.
European Commission president Ursula von der Leyen said Wednesday that Bulgaria’s move into the eurozone marked “an important milestone for the country, for the history of the euro, and for the EU as a whole.”
The euro will bring “practical benefits to Bulgarian citizens and businesses,” she added.
“It will make travelling and living abroad easier, boost the transparency and competitiveness of markets, and facilitate trade.”
Bulgaria, which joined the EU in 2007, faces unique challenges however, including anti-corruption protests that recently swept a conservative-led government from office, leaving the country on the verge of its eighth election in five years.
Outgoing Prime Minister Rossen Jeliazkov still said on Tuesday that his cabinet had accomplished a milestone.
“Bulgaria is ending the year with a gross domestic product of 113 billion euros (nearly $132.75 billion) and economic growth of more than three percent, which places us among the top five countries in the EU,” he said.
He added that inflation in the Black Sea country, which hovers around 3.6 percent, was “linked to increased purchasing power” and a less corrupt economy, and not to the looming euro switch.
