Brussels/Sofia, January 1, 2026 – The euro, Europe's single currency, marked its 27th anniversary on January 1, 2026, coinciding with a historic expansion: Bulgaria officially adopted the euro, becoming the 21st member of the eurozone. This milestone brings the number of Europeans using the euro to over 350 million, further solidifying its role as a symbol of European integration and economic stability.
The euro was introduced as a virtual accounting currency on January 1, 1999, replacing the European Currency Unit (ECU) at a 1:1 ratio. Physical banknotes and coins entered circulation on January 1, 2002, after a three-year transition period, fully replacing national currencies in the initial 12 participating countries by March 2002.
Bulgaria's accession, effective at midnight, ends the era of the Bulgarian lev—a currency in use since the late 19th century—and integrates the Balkan nation of 6.7 million deeper into the European Union, which it joined in 2007. Celebrations in Sofia featured projections of euro banknotes on the Bulgarian National Bank's facade, with crowds gathering despite cold temperatures. The fixed conversion rate is 1 euro = 1.95583 leva.
European Central Bank (ECB) President Christine Lagarde welcomed Bulgaria, stating it represents "shared values and collective strength." The move follows Croatia's entry in 2023 and reflects Bulgaria's compliance with convergence criteria, including inflation control and fiscal stability.
The eurozone now comprises 21 countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Six EU members remain outside: Czech Republic, Denmark (with an opt-out), Hungary, Poland, Romania, and Sweden.
Monetary policy is managed by the Eurosystem, led by the ECB, which targets medium-term inflation at 2% to ensure price stability. The ECB also oversees banking supervision, financial monitoring, banknote printing, and secure payments, while researching digital innovations like crypto assets.
Euro banknotes come in seven denominations (€5, €10, €20, €50, €100, €200, €500), with colorful designs featuring European architectural styles. Coins include 1 and 2 euros, plus cent denominations. Production of the €500 note ceased in 2019 to combat illicit activities, though existing notes remain legal tender and exchangeable.
The euro's exchange rate history shows volatility: launching at about $1.17 in 1999, dipping to $0.83 in 2000, peaking at $1.60 in 2008, and ending 2025 around $1.18 after a roughly 15% gain against the USD. It remains the world's second-most held reserve currency, accounting for about 20% of global reserves behind the USD's 58%.
Challenges persist, including high public debt. In mid-2025, the eurozone debt-to-GDP ratio stood at around 88.2%, up slightly from prior quarters, with total debt exceeding €13 trillion. Greece leads at over 151%, followed by Italy (138%), France (115%), and others, far above the EU's 60% target. Persistent high debt impacts regional growth amid calls for fiscal discipline.
Despite ups and downs, the euro symbolizes unity, facilitating trade, travel, and stability for over 350 million people. Bulgaria's entry reinforces this legacy as the currency enters its 28th year.
