Bulgarian National Bank Governor Dimitar Radev took part in a meeting of EU Heads of Mission held under the European Presidency of the Republic of Cyprus. The discussion was organized at the initiative of Cyprus’ Ambassador to Sofia, H.E. Charalambos Kafkarides.

Addressing the diplomats, Radev outlined three main themes: Bulgaria’s transition to the euro, the economic implications of the current political climate, and the country’s macroeconomic prospects.

Euro adoption

Radev stated that the introduction of the euro as of January 1, 2026, has proceeded smoothly. According to him, the changeover was carried out without operational disruptions and with macro-financial stability preserved. He attributed the outcome to thorough advance preparation and strong coordination among institutions. Joining the euro area, he emphasized, enhances Bulgaria’s strategic standing and anchors its development within a predictable institutional framework.

Political context and economic direction

Referring to the caretaker government and forthcoming elections, the Governor acknowledged that political tensions have intensified. He described the debate as part of a wider process of defining national priorities, including reaffirming the country’s pro-European course, advancing structural and anti-corruption reforms, and clarifying the state’s role in the economy. Progress and gradual alignment in these areas, he argued, will be decisive for improving the investment climate and sustaining long-term economic convergence.

Macroeconomic outlook

Despite political uncertainty, Radev underlined that the overall economic picture remains stable. Economic growth continues at a positive rate, inflationary pressures are easing, and the banking sector remains solid, well capitalized and resilient. At the same time, he cautioned that risks persist, particularly those stemming from the external environment, price developments and fiscal policy choices. Addressing these challenges will require timely and balanced decisions.

The meeting concluded with an in-depth exchange of views, reflecting strong interest among EU representatives in Bulgaria’s trajectory. Radev stressed that maintaining the current economic momentum will depend on a steady policy framework, disciplined fiscal management and consistent implementation of structural reforms.