Bulgaria and the Euro: What Happens to National Monetary Sovereignty?
One of the most debated topics around Bulgaria’s upcoming transition from the lev to the euro is whether the country is giving up its sovereignty
Bulgaria is falling behind the EU average in terms of government expenditure as a percentage of GDP, particularly in the areas of social protection, education, and healthcare. This is highlighted in the country's report on its progress in implementing the UN Sustainable Development Goals (SDGs). The report also draws attention to a decline in interurban transport and the deteriorating quality of water in the country.
However, Bulgaria has made strides in certain areas, including reducing poverty, addressing hunger, promoting gender equality, advancing inclusive education, and reducing the rate of students dropping out of school prematurely. Despite these positive developments, Bulgaria’s demographic challenges persist, with a steadily declining and aging population. In 2023, the country recorded a birth rate of just 8.9‰, while the mortality rate was significantly higher at 15.7‰, the highest in the European Union.
Political instability during the 2020-2024 period is seen as a potential obstacle to reforms, particularly in areas such as fighting corruption, strengthening the rule of law, transitioning to a green economy, economic diversification, and advancing digital transformation. Additionally, Bulgaria continues to face a high proportion of working poor, a figure that has increased by nearly 50% since 2015, now accounting for almost 10% of the workforce.
On the issue of food prices, Bulgaria has experienced a negative trend, with increasing food price anomalies, exacerbated in part by the ongoing war in Ukraine. The country’s educational performance also shows signs of decline, with fewer individuals completing secondary education and lower secondary stages of primary education. Participation in adult education has also decreased significantly, with nearly a 30% drop in participation between 2015 and 2023.
Small and medium-sized enterprises are often criticized for not offering enough training opportunities for their employees, further limiting growth in this sector. Moreover, Bulgaria’s water quality is suffering, particularly in rivers, due to the excessive use of fertilizers in agriculture.
In terms of domestic transport, the country has seen a nearly 23% decline in the share of buses and trains between 2015 and 2021. This trend highlights the urgent need for substantial investment and reform in the public transport system.
Bulgaria is expected to present its findings to the UN Forum on Sustainable Development in July, outlining both progress and areas that still require significant attention and improvement.
Source: UN
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