Austria’s transition from the schilling to the euro offers a revealing example for Bulgaria, which is set to adopt the single currency in less than three months, Nova TV reports.

The move from the schilling, a currency deeply ingrained in Austrian identity, came after a referendum in which 64 percent of citizens voted in favor of joining the European Union. While no separate poll specifically addressed the euro, giving up the schilling was challenging for many. Known for its stability, the Alpine dollar held strong sentimental value, and some Austrians still recall it fondly. Early statistics showed only about 2 percent inflation after the euro’s introduction, yet a widespread perception persisted that prices had risen, leading to the popular saying “Euro ist teuro” - the euro is expensive.

Young Austrians like Dia, 21, who has only known the euro, view inflation as a broader issue. “I’ve never seen anything other than the euro. Inflation has been very high in the last two years. Customers complain, but it’s hardly the euro that’s the problem,” she says. Older generations, however, such as Harold, remember paying in schillings and feel the euro has made life more costly, arguing that prices for basic goods skyrocketed after the transition.

Authorities allowed a two-month dual-currency period at the start of 2002, yet by the second week, nearly 90 percent of payments were already in euros. Analysts at the Austrian Central Bank stress that the euro helped stabilize inflation rather than drive it higher. Thomas Gruber notes that a year after adoption, inflation was lower than in previous years, and even in cases of minor appreciation, the euro generally maintained stable pricing.

High inflation spikes in recent years, such as the 12 percent surge following the Ukraine war, are attributed to energy costs and global market disruptions, not the euro itself. Experts at the Austrian Institute for Economic Research emphasize that the perception of euro-driven price increases persists despite decades of stable monetary policy.

Currently, Austrian inflation hovers around 4 percent, influenced by the withdrawal of government financial support to businesses and households. Barbara Eibinger-Miedl from the Ministry of Finance highlights that the euro’s introduction remains a success, boosting the economy and tourism, and facilitating smoother financial transactions for residents and visitors alike.

For tourists, paying directly in euros eliminates the need for currency exchange and related fees, making travel simpler. Christian Mandl of the Austrian Economic Chamber points out that the euro standardizes prices and reduces withdrawal fees at ATMs.

Former Chancellor Franz Vranitzky, in office when Austria joined the EU, stresses that adopting the euro strengthened the country politically and economically, particularly for smaller nations. He underscores the importance of European solidarity in confronting global challenges, from Russia to the United States, asserting that unity provides greater security and influence than isolation.

Despite persistent nostalgia and phrases like “Euro ist teuro,” statistical evidence shows that inflation remained moderate after 2002. Moreover, Austria’s foreign investment increased fivefold in the years following the euro’s adoption, illustrating the broader economic benefits of joining the single currency, lessons Bulgaria is now poised to apply.