Author information:
Charles Enoch https://orcid.org/0009-0001-0144-037X: Consultant on Central Bank Issues and Regional Integration. E-mail: Cenoch99@gmail.com
Anne-Marie Gulde https://orcid.org/0009-0005-0439-3731: Consultant on International Financial and Debt Issues. E-mail: Aguldewolf@gmail.com
Abstract:
Bulgaria’s monetary integration with Europe started with the creation of the currency board in 1997. This paper traces how hard constraints on central bank financing and money creation, combined with political consensus forged in crisis, restored credibility, helped to attract investment, and supported deep structural change and privatisation. Despite the early success, however, Bulgaria’s trajectory from crisis stabilisation to EU accession in 2007 and eventually to ERM II entry in 2020 and euro adoption was unusually long, shaped by a combination of persistent pre-crisis imbalances, the global financial crisis and the resulting stricter post-crisis European prudential demands. While Bulgaria’s monetary policy after the creation of the currency board was determined by the anchor currency, euro entry still brings additional gains, such as representation in ECB decisions, lower currency and country risk, deeper financial market access and reduced transaction costs, while remaining costs are mostly transitional. Monetary success, however, does not fully resolve Bulgaria’s broader institutional and demographic challenges.
Cite as (APA):
Enoch, C., & Gulde, A.-M. (2026). Bulgaria’s Path to the Euro: The Role and Legacy of the Currency Board. Financial and Economic Review, 25(1), 5–26. https://doi.org/10.33893/FER.25.1.5
Column:
Study
Journal of Economic Literature (JEL) codes:
E42, E52, E58, F31, F33
Keywords:
hyperinflation, currency board, stabilisation, euro adoption, monetary integration
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