As Bulgaria edges closer to adopting the euro, political and economic tensions are mounting across the country. With the formal decision on eurozone accession expected soon, the summer season is shaping up to be one of intense public debate, inflation anxieties, and mounting fiscal concerns.
One of the most prominent issues dominating public discourse is inflation. Citizens have voiced growing alarm over rising consumer prices, with media outlets spotlighting sharp increases in food and beverage costs—some reportedly up to 40%.
Campaign-style rhetoric, driven by opposition figures and amplified online, has heightened public sensitivity to price hikes, even in cases as specific as a well-known mineral water brand.
Government agencies, including the Commission for Protection of Competition, the Consumer Protection Commission, and the National Revenue Agency, have stepped up enforcement efforts and media briefings.
However, instead of easing public concern, their visibility may be contributing to a climate of distrust and panic. The current mood mirrors previous protest movements such as the grocery store boycotts, and demands for stricter market controls are growing louder.
The anxiety over inflation is feeding directly into resistance to the euro. Many Bulgarians remain skeptical of official inflation data, viewing it either as confirmation of the problem or as manipulated to smooth the path toward eurozone entry.
A case in point is the controversy over April’s inflation figures. Critics argue that a temporary reduction in hospital fees artificially lowered the rate to help Bulgaria meet the EU’s price stability criteria, while more consequential policy changes—like the reintroduction of VAT on bread and restaurants, and increased electricity prices—are downplayed in public discourse.
Yet behind the inflation rhetoric lies a deeper issue: Bulgaria’s fiscal health. The country is heading toward an excessive deficit procedure in 2025, and pressure is mounting for tax increases.
A hike in social insurance contributions is already part of the government’s medium-term fiscal plan. Additional proposals include raising VAT, increasing corporate tax rates, and introducing new levies, such as a windfall tax on banking profits.
This autumn, Bulgaria will be tasked with passing its first state budget in euros. That fiscal plan must show a clear commitment to deficit reduction, with spending cuts focused on halting automatic public sector wage hikes.
On the revenue side, the government will need to address long-standing inefficiencies in tax collection, including poor toll revenues, gaps in gambling taxation, and undervalued property assessments.
Meanwhile, political risks are escalating. Opposition parties are using anti-euro sentiment to galvanize support, but some of the biggest threats come from within the governing ranks.
Efforts to centralize power may lead to snap elections or increased state intervention in the economy. Recent moves—such as directing major public funds into the Bulgarian Development Bank and expanding the scope of market oversight bodies—are raising concerns about creeping economic nationalism.
As Bulgaria stands at a crossroads, the path toward euro adoption is not merely a monetary transition. It encapsulates broader debates about governance, fiscal responsibility, and public trust—issues that will define the country’s political and economic trajectory well beyond 2025.