National Bank of Bulgaria Governor Radev highlights smooth euro changeover and calls for fiscal discipline amid political uncertainty

At a meeting of European Union member states’ heads of mission organised under the Republic of Cyprus’s EU presidency, National Bank of Bulgaria Governor Dimitar Radev focused on the euro changeover, the economic implications of Bulgaria’s current political environment, and the macroeconomic outlook. Radev described the introduction of the euro from 1 January 2026 as successful, with no operational disruption and macrofinancial stability maintained, attributing the outcome to systematic preparation and effective institutional coordination. He framed euro area membership as strengthening Bulgaria’s strategic position and providing a stable institutional framework. Against a backdrop of a caretaker government and upcoming elections, he linked the heightened political debate to a broader clarification of strategic priorities, including pro-European orientation, structural and anti-corruption reforms, and the role of the state in the economy, arguing that consolidation in these areas will be important for the investment environment and long-term economic convergence. On the outlook, he said growth remains positive, inflationary pressures are easing, and the banking sector is resilient and well capitalised, while noting risks from the external environment, price dynamics and fiscal policy that require prudent, timely decisions. Following a discussion with questions from participants, Radev concluded that sustaining economic resilience in the current setting depends on a stable political framework, prudent macroeconomic policy anchored in fiscal discipline, and consistent implementation of structural reforms.