Kēstutis Kupsys, vice president of the Lithuanian Consumers' Union, shared insights from Lithuania’s experience with euro adoption in an interview with Bulgarian National Radio. He stressed the importance of active involvement by consumer organizations in Bulgaria to monitor prices and prevent unfair practices during the currency transition.

Kupsys explained that when Lithuania introduced the euro in 2014, the government tasked his organization with overseeing currency conversion and double pricing labels across a wide range of businesses - from major retail chains to small family stores, hair salons, and even ice cream vendors in parks. This close monitoring ensured transparency and fairness in pricing.

He highlighted that in Lithuania, many prices remained stable after the switch, but service costs, such as haircuts, saw sharp increases. For example, a haircut that cost about 3 euros before now costs between 12 and 15 euros. However, these price hikes coincided with a substantial rise in incomes: the average Lithuanian salary has grown from 400 euros in 2014 to 1,400 euros today, roughly three and a half times higher. According to Kupsys, the euro’s introduction significantly boosted Lithuania’s economy, although inflation has gradually increased alongside these changes.

When asked how Lithuania ensured that inflation wasn’t artificially driven by poor currency conversion, Kupsys described a rigorous six-month price control project conducted before and after adopting the euro. This effort aimed to guarantee that prices were converted precisely at the official exchange rate of 1.95583 leva per euro. Double labeling of prices in both currencies was a crucial part of this process, allowing consumers to verify that prices remained consistent and fair during the transition.

Kupsys acknowledged that in Bulgaria, some traders have already begun displaying dual prices, but he recognized the impracticality for ordinary consumers to calculate every price manually. Instead, consumer organizations like his can play a watchdog role. In Lithuania, when traders misapplied the exchange rate, his group reported these cases to authorities, who issued warnings or fines. Most pricing errors were honest mistakes, and traders corrected them once informed.

Addressing skepticism about the euro in Bulgaria, Kupsys emphasized the benefits of adopting the currency, particularly the likely reduction in interest rates. He explained that this would help Bulgarian families save significantly on loans and mortgages, easing the financial burden of purchasing homes. The interest rate difference between the current lev-based system and the euro is substantial, potentially saving Bulgarians hundreds of millions of euros annually.

Kupsys encouraged Bulgarians to look beyond fears, whether intentional or accidental, and recognize that embracing the euro can lead to greater economic stability and personal savings over time.

Source: BNR interview