Finance
Iran War May Boost Already Rising Support for Euro in Bulgaria, Central Banker Says
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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Bulgaria’s modest inflation rise (~0.3‑0.4 pp) after adopting the euro was short‑lived, boosting public support from 45% to 54%, while support in the business sector now stands in the 70s. The Iran war may further strengthen the euro appeal as households seek stability amid energy‑led risks.
Iran Conflict Could Further Boost Rising Support for the Euro in Bulgaria
Rising Euro Support in Bulgaria Amid Geopolitical Tensions
Inflation Impact of Euro Adoption
SOFIA, April 7 (Reuters) - Bulgaria suffered only a small inflation bump when it adopted the euro on January 1 and public support for the common currency is now rising quickly, with the war in Iran offering a potential boost, Central Bank Governor Dimitar Radev said.
Public Concerns Before the Switch
Public support for the euro was relatively low in the lead-up to the currency switch and Bulgaria's former president, seen as a favourite to become prime minister after an election on April 19, has been an outspoken critic, arguing that prices would rise, making one of the EU's poorest countries less affordable.
Central Bank Analysis and Inflation Data
"Our analysis suggests that the impact was limited and largely one-off, in the range of 0.3 to 0.4 percentage points, broadly comparable to Croatia’s experience," Radev, now a member of the ECB Governing Council, told Reuters in an interview.
Bulgaria's inflation actually slowed in January, to 2.3% from 3.5% in the previous month, and stood broadly in line with the euro zone figure in March.
Geopolitical Factors and Public Sentiment
Impact of the Iran Conflict
The mild inflation impact helped boost support for the euro, albeit from relatively low levels, and Radev said the war in Iran may actually raise support further as households see the shield it provides.
Shifts in Household and Business Support
"Household support stood at 45% before accession and has since risen to 54%," he said. "In the business community, support was already strong and is now in the 70s."
Visibility of Eurozone Benefits
"The current environment is likely to make the benefits more visible, as more people recognise the value of being part of the union rather than remaining outside it," Radev said.
(Reporting by Balazs KoranyiEditing by Gareth Jones)
Key Takeaways
- •Inflation impact from euro adoption was limited (~0.3‑0.4 percentage points), comparable to Croatia, and largely temporary, with January inflation staying low at ~2.3 %
- •Public support for the euro increased from ~45% pre‑adoption to ~54% post‑adoption; business support already strong, now in the 70s
- •The Iran war, by highlighting energy‑related inflation risks, may further raise the euro’s appeal as a stabilising shield
Frequently Asked Questions about Iran war may boost already rising support for euro in Bulgaria, central banker says
1Did Bulgaria experience significant inflation after adopting the euro?
No, Bulgaria saw only a limited, one-off inflation impact of about 0.3 to 0.4 percentage points after adopting the euro.
2How has public support for the euro changed in Bulgaria?
Public support for the euro rose from 45% before accession to 54% after adoption, with even higher support among the business community.
3How might the war in Iran affect support for the euro in Bulgaria?
The war in Iran may boost Bulgarian support for the euro as households recognize the protection it offers during instability.
4Who expressed concerns over Bulgaria's euro switch?
Bulgaria's former president, a likely prime ministerial candidate, criticized the euro switch, citing affordability concerns.
5How does Bulgaria's inflation after euro adoption compare to other countries?
The inflation impact was broadly comparable to Croatia’s experience after its euro adoption.
