Assoc. Prof. Dimitar Zlatinov, PhD, Vice-Dean for Academic Affairs and Head of the Department of Economics at the Faculty of Economics and Business Administration of Sofia University “St. Kliment Ohridski”, contributed expert commentary to an in-depth analysis published by the Polish daily newspaper Rzeczpospolita on the initial results following the introduction of the euro in Bulgaria.

The article examines the impact of the single European currency on prices, public attitudes, investment, bank lending, and the country’s economic development. In his comments, Assoc. Prof. Zlatinov notes that Bulgarian citizens are using the euro without significant difficulty and that political tensions surrounding its adoption have subsided, contributing to increased public support.

With regard to inflation, he points out that the observed impact of the transition to the euro has been predominantly one-off, concentrated in particular months and product categories. A review of approximately 1.4 million prices at major retail chains found no evidence of systematic upward adjustments during currency conversion, with most price changes occurring before the euro was officially adopted.

Assoc. Prof. Zlatinov also places the initial results in the broader context of Bulgaria’s economic development. He stresses that the country remains a catching-up economy, where rising incomes strengthen purchasing power and domestic demand. In his view, the data currently available are not yet sufficient to clearly isolate the euro’s impact on foreign direct investment.

The analysis also examines the effects of lower minimum reserve requirements for banks following Bulgaria’s accession to the euro area. Assoc. Prof. Zlatinov notes that a significant share of the released liquidity was initially deposited with the European Central Bank rather than converted into new lending. Consequently, no clear positive impact on the real economy has yet emerged.

Full text of the article in Polish: “Euro miało odmienić Bułgarię. Na razie największym sukcesem są stabilne ceny” – Rzeczpospolita