For now, the transition to the euro in Bulgaria is set for January 1, 2026, but the decision must be made in time – until the end of the first half of this year – so that businesses can prepare smoothly. If deadlines are too short, the system could face difficulties, costs for essential services like software updates and staff training may rise due to high demand, and the quality of these services could suffer. A clear transition period of at least six months is necessary to avoid such disruptions, according to Galin Popov, executive director of the Association of Non-Food Traders (ANFT).
The financial burden of the euro transition varies significantly among businesses, with some companies expecting costs in the tens of thousands of leva, while others anticipate expenses reaching several hundred thousand leva. These are preliminary costs, covering preparations for the switch. The Association of Banks in Bulgaria estimates that transitioning to the euro will cost banks alone approximately 500 million leva. Businesses could face even higher expenses, though exact figures remain uncertain.
One key step still pending is the adoption of Regulation 18, which is crucial for businesses’ connection to the state’s fiscal system and the National Revenue Agency (NRA). While the primary legislative framework for the euro transition was adopted last year, this regulation is still awaiting approval by the Ministry of Finance. Popov expressed hope that with the formation of a regular government, the regulation would soon be finalized, allowing businesses to move forward with necessary software changes and internal adjustments.
A mid-2024 survey by the ANFT revealed that many traders felt the government had focused its communication efforts on consumers rather than businesses. Two-thirds of ANFT members believe they need more practical information on what to expect, and about a third want government-led training on key aspects of the transition. Popov stressed that traders were an essential part of the market, and targeted support was necessary to prevent confusion and operational issues.
Despite concerns over the transition, Popov dismissed fears that the euro adoption could lead to bankruptcies among small businesses. According to him, company failures are generally due to management issues rather than currency changes.
In addition to the euro transition, Bulgaria’s full entry into the Schengen Area is expected to have a positive impact on businesses. Popov emphasized that faster movement of goods would reduce costs and improve efficiency, contributing to economic growth. Estimates suggest Bulgaria’s GDP could increase by more than 1.5 billion leva as a result of Schengen accession. (Novinite)