IMF Managing Director Kristalina Georgieva said that from January 1 Bulgaria will have full participation in eurozone decision-making, emphasizing that the country’s success will depend on maintaining discipline and sound policies. Speaking at the “Bulgaria on the Threshold of the Eurozone” conference in Sofia, she underlined that Bulgaria’s macroeconomic stability and fiscal discipline must remain strong to ensure a smooth transition and lasting benefits from adopting the euro.

“What matters most for Bulgaria is discipline,” Georgieva said. “Macroeconomic indicators must stay in excellent condition. Good monetary policy is essential for convergence with the eurozone. The euro comes with responsibility - Bulgaria will have a voice in eurozone decisions, and that must be exercised through responsible policies that protect economic stability and support private sector productivity.”

Georgieva described the upcoming accession as a moment of national pride. “All Bulgarians will celebrate together on January 1. We have gathered for a joyful occasion: the adoption of the euro,” she noted, recalling that the IMF had a key role in establishing Bulgaria’s Currency Board in the 1990s. “As the IMF head and as a Bulgarian, I see this as a hard-won achievement.”

She also highlighted that Bulgarian National Bank Governor Dimitar Radev will soon have a vote in the European Central Bank on key issues such as financial stability, policy direction, and the digital euro. “Bulgaria will sit at the decision-making table of the eurozone and will have the full right to participate in shaping its future,” Georgieva stressed.

Drawing parallels with Croatia, which adopted the euro in 2023, Georgieva said Bulgaria is even better prepared thanks to its long-standing Currency Board, consistent financial measures, and public awareness about the transition. She warned, however, that some nostalgia toward the lev had been politicized and urged that it should not undermine the process.

“Bulgaria will gain even more from joining the eurozone than it has from EU integration,” she said. “The euro will bring benefits, but it does not automatically guarantee higher living standards. Progress depends on combining the euro with strong, responsible policies. Bulgarians want to see convergence accelerate, and this is achievable if the country continues to aim for higher growth, greater productivity, and incomes that match the EU average within the next decade.”

Georgieva identified several challenges, including the outflow of skilled workers and population decline, which she said must be addressed through stable governance and private sector support. She concluded by outlining three key priorities for Bulgaria: maintaining fiscal discipline, tightening macroeconomic policy to reduce risks and prevent overheating, and speeding up structural and governance reforms to boost productivity and real income levels.

Further readings:

Christine Lagarde: The Euro Will Bring Bulgaria Prosperity and Security