Bulgaria Prepares for Euro Switch: Key Details on Price Rounding and Wage Protection

The Bulgarian Parliament has approved the Law on the introduction of the euro, which outlines the procedures for rounding prices following the currency switch. This legislation is designed to manage the transition from the leva to the euro once Bulgaria joins the Eurozone, detailing how prices will be displayed in both currencies for a month. The aim is to mitigate concerns about significant price increases by ensuring that prices are rounded according to the official exchange rate.

For "Bulgaria ON AIR", Economist Julian Voinov explained that the law ensures a smooth transition, providing a grace period where both leva and euro prices will be visible. This dual pricing system is intended to reassure the public that prices will not see drastic changes immediately. The law stipulates that rounding must adhere to the official conversion rate.

Zornitsa Rusinova highlighted that the new legislation guarantees that wage levels will not be affected by the euro adoption. She noted that the law includes provisions for a 12-month period where prices will be displayed in both currencies to avoid confusion. Additionally, the law allows Bulgarians to exchange leva for euros at no cost through the Bulgarian Post Office, with both currencies being accepted until the transition is complete.

Voinov pointed out that Bulgaria's primary challenge is meeting the inflation criteria for Eurozone entry, although current inflation rates are already lower than those in the Eurozone. He attributed previous high inflation to concerns among Bulgarian companies about price protection. While political instability may impact the budget adoption process, it is not expected to hinder Bulgaria's Eurozone accession.