Bulgaria to become the 21st country to join the euro, deepening EU ties despite fears

SOFIA, Bulgaria (AP) — On New Year’s Day, Bulgaria becomes the 21st country to join the euro currency union, furthering its integration into the European Union. But the historic milestone arrives amid political instability and skepticism among ordinary people fueled by fears of price rises.

Supporters of switching to the euro from the old currency, the lev, are praising the move as one of the greatest achievements since the 1989 transition from a Soviet-style economy to democracy and free markets. They hope it will make the country more attractive for investors and strengthen its orientation toward wealthier Western Europe.

But many people are uneasy, in a country where corruption is rife and trust in the authorities is low. One fear is that merchants will round prices up or otherwise use the changeover to worsen inflation, at a time when inflation has rebounded to 3.7%.

An EU Eurobarometer poll from March showed that 53% of 1,017 people surveyed opposed joining the eurozone, while 45% were in favor. A separate Eurobarometer poll, taken between Oct. 9 and Nov. 3 on a similar sample, showed that about half of Bulgarians opposed the single currency while 42% were in favor. The margin of error was about plus or minus 3.1 percentage points for the March poll.

The government successfully completed the euro adoption process by beating inflation down to 2.7% earlier this year to comply with EU rules and win approval from EU leaders. But clearing that hurdle was followed by a new chapter of political chaos. The government resigned after less than a year in office amid nationwide anti-corruption protests. This left the country without a regular budget for next year and is hampering plans for long-overdue structural reforms and decisions on use of EU support funds. A new election — the eighth in five years — is expected to be held next spring.

Nevelin Petrov, 64, said he welcomed the euro. “Bulgaria is a full member of the European Union, and its rightful place is alongside the other developed and democratic European nations,” he said. “I am convinced that the adoption of the euro will contribute to the long-term prosperity of our country,” he said.

Others, like Darina Vitova, who runs a pedicure salon in Sofia, said things were moving too fast although she welcomed the change “in principle.”

“The standard of living and incomes in our country are far from those in the richest European countries, while prices here are rising and life for the average person will become more difficult,” she said. She acknowledges that when heading to the beaches in neighboring Greece, it will be more convenient to pay with the same “pocket money” she uses at home.

Bulgaria, with its 6.4 million people, is one of the poorest members of the 27-country European union. The average monthly wage is 1,300 euros ($1,530).

Countries that join the EU commit to the euro, but actually joining can take years and some members are in no hurry. Poland in particular has seen strong economic growth since joining the EU in 2004 without adopting the euro.

Opponents of joining have fed fears that the changes will allegedly lead to more poverty and loss of national identity. Social media has spread disinformation such as false claims that the euro could lead to confiscation of bank accounts. Nationalist and pro-Russian groups exploit these fears.

European Central Bank President Christine Lagarde has said that countries have experienced a slight, transient rise in prices of 0.2%-0.4% right after joining. Price rises can be more apparent than real, as cafe and hairdressers may put off printing new menus and price lists ahead of the change, so that increases are only delayed, not caused by the euro.

Anti-euro rallies in May and September were organized by the pro-Russian Vazrazhdane party but remained smaller than the mass protests that toppled the government. While the anti-euro protests were supported by older people based on economic anxiety, the mass protests that toppled the government appeared to represent a younger electorate fed up with corruption and eager to integrate with Europe.

Anti-euro disinformation spread by pro-Russian politicians and social media aim “to reduce support for the European Union, NATO and Ukraine,” said Dimitar Keranov, program coordinator for engaging Central Europe at the German Marshall Fund in Berlin.

Bulgaria’s European integration “is not in Moscow’s interest at all, so if it can somehow polarize society and weaken support for the European Union that’s what it tries to achieve," he said.

Euro adoption is another way to combat Russian influence, he said: “The further Bulgaria advances in its European integration, the harder it becomes for Russia to influence the country.”

Petar Ganev, an analyst at the Sofia-based Institute for Market Economics, says that that by stepping down the outgoing government has sent a signal of uncertainty to foreign investors.

“Instead of capitalizing on euro adoption as a strong and positive signal to the international community—investors, debt holders, and those investing in Bulgarian assets and economic activity—we risk sending the opposite message,” Ganev said in an interview with the Associated Press.

Ganev believes that eurozone membership should be regarded as an opportunity, an additional mechanism to address corruption and the rule of law, although it alone cannot resolve Bulgaria’s chronic cycle of elections and political fragmentation and instability.

Local economists think that joining the euro will not bring dramatic changes to Bulgaria’s economy. That is because the lev has been pegged since 1999 to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.

The lev and the euro will be in dual use for cash payments for the whole month of January, but people will receive only euros in change.

McHugh reported from Frankfurt, Germany. Valentina Petrova in Sofia contributed to this report

A woman passes by a billboard displaying Eurozone information campaign in Sofia, Saturday, Dec. 27, 2025. (AP Photo/Valentina Petrova)

The shadow of a person seen next to graffiti reading "No to the euro" altered to "Yes to the euro" in Sofia, Monday, Dec. 29, 2025. (AP Photo/Valentina Petrova)

A woman passes by a graffiti reading "No to the euro" altered to "Yes to the euro" in Sofia, Monday, Dec. 29, 2025. (AP Photo/Valentina Petrova)

New Euro coins with Bulgarian symbols reflected in a table seen backdropped by Bulgarian and EU flag, Sofia, Tuesday Dec. 30, 2025. (AP Photo/Valentina Petrova)

A girl poses as she holds new euro coins with Bulgarian symbols in Sofia, Tuesday Dec. 30, 2025. (AP Photo/Valentina Petrova)

A woman poses as she holds new euro coins with Bulgarian symbols in Sofia in front of Bulgarian National Bank, Saturday Dec. 27, 2025. (AP Photo/Valentina Petrova)

People wait in line to buy packages of new Euro coins with Bulgarian symbols at the doorstep of Bulgarian National Bank, in Sofia, Saturday Dec. 27, 2025. (AP Photo/Valentina Petrova)

A woman poses as she holds new euro coins with Bulgarian symbols in Sofia in front of Bulgarian National Bank, Saturday Dec. 27, 2025. (AP Photo/Valentina Petrova)

People stand at a currency exchange office with a poster reading "Did you exchange your levs for euros?" in Sofia, Saturday, Dec. 27, 2025. (AP Photo/Valentina Petrova)

BOSTON (AP) — A federal judge has halted efforts by the Trump administration to collect data that proves higher education institutions aren’t considering race in admissions.

The ruling from U.S. District Court Judge F. Dennis Saylor IV in Boston on Friday granting the preliminary injunction follows a lawsuit filed earlier this month by a coalition of 17 Democratic state attorneys general. It will only apply to public universities in plaintiffs

The federal judge said the federal government likely has the authority to collect the data, but the demand was rolled out to universities in a “rushed and chaotic” manner.

“The 120-day deadline imposed by the President led directly to the failure of NCES (National Center for Education Statistics) to engage meaningfully with the institutions during the notice-and-comment process to address the multitude of problems presented by the new requirements,” Saylor wrote.

President Donald Trump ordered the data collection in August after he raised concerns that colleges and universities were using personal statements and other proxies to consider race, which he views as illegal discrimination.

In 2023, the Supreme Court ruled against the use of affirmative action in admissions but said colleges could still consider how race has shaped students’ lives if applicants share that information in their admissions essays.

The states argue the data collection risks invading student privacy and leading to baseless investigations of colleges and universities. They also argued that universities have not been given enough time to collect the data.

“The data has been sought in such a hasty and irresponsible way that it will create problems for universities,” a lawyer for the plaintiffs, Michelle Pascucci, told the court, adding that the effort seem was aimed at uncovering unlawful practices.

The Education Department has defended the effort, arguing taxpayers deserve transparency on how money is spent at institutions that receive federal funding.

The administration's policy echoes settlement agreements the government negotiated with Brown University and Columbia University, restoring their federal research money. The universities agreed to give the government data on the race, grade-point average and standardized test scores of applicants, admitted students and enrolled students. The schools also agreed to be audited by the government and to release admissions statistics to the public.

The National Center for Education Statistics is to collect the new data, including the race and sex of colleges’ applicants, admitted students and enrolled students. Education Secretary Linda McMahon has said the data, which was originally due by March 18, must be disaggregated by race and sex and retroactively reported for the past seven years.

If colleges fail to submit timely, complete and accurate data, the administration has said McMahon can take action under Title IV of the Higher Education Act of 1965, which outlines requirements for colleges receiving federal financial aid for students.

The Trump administration separately has sued Harvard University over similar data, saying it refused to provide admissions records the Justice Department demanded to ensure the school stopped using affirmative action. Harvard has said the university has been responding to the government’s requests and is in compliance with the high court ruling against affirmative action. On Monday, the Education Department's Office for Civil Rights directed Harvard to comply with the data requests within 20 days for face referral to the U.S. Justice Department.

President Donald Trump arrives to speak about the Iran war from the Cross Hall of the White House on Wednesday, April 1, 2026, in Washington. (AP Photo/Alex Brandon, Pool)