Small firms in Bulgaria are worried that the introduction of the euro will lead to economic chaos and bankruptcies. The Eastern European country is set to swap its national currency for the euro from January 2026.
This follows a decision by Brussels last month to give the green light for Bulgaria to join the eurozone- but the move has sparked panic amoong small busines owners. The Terziev family owns a number of organic food stores in the southern city of Haskovo. The business is more than 10 years old and has weathered various economic crises along the way.
However, owner Nikolay Terziev fears the introduction of the euro could end up making people poorer and therefore less able to afford his products.
He believes the change is likely to prove beneficial to big business, but leave smaller ones struggling to survive.
“What worries us is the information we’re getting from close acquaintances in countries that have already adopted the euro,” he told Euronews. “Yes, economic indicators improve, but the population becomes poorer. But more big businesses profit.”
Already, there has been a noticeable increase in supplier prices, raising concerns that people will not be able to afford to buy as much. This, in turn could lead to a wave of bankruptcies among smaller businesses, as they lose their clientele.
Bulgaria’s macroeconomic indicators are all healthy, allowing it to easily meet the criteria for joining the eurozone. The country has very low levels of debt, only 24.1% of annual economic output and well below the 60% threshold.
It also has kept its inflation below the 2.8% benchmark – last year the rate stood at around 2.6%. Terziev is bracing himself for turmoil, telling Euronews: “We know very well that chaos will begin in early January. From January, we’ll have to give change in euros; we’ll have to calculate in eurocents.”
A majority of Bulgarians appear apprehensive about adopting the euro, according to a recent EU poll. The most recent Eurobarometer poll showed that 50% of Bulgarians were opposed and 43% were in favour.