Bulgaria officially adopted the euro as its currency on , becoming the 21st member of the Eurozone. While presented as a routine step in European integration, fulfilling a commitment made upon Bulgaria’s accession to the European Union in , the path to euro adoption has been marked by constitutional friction and growing public skepticism.
Recent years have seen repeated attempts to postpone the adoption of the euro, with initiatives seeking a national referendum to delay the change until . However, these efforts were ultimately unsuccessful, as the Bulgarian Constitutional Court upheld the National Assembly’s decision not to hold a referendum on the matter in . The Court’s ruling, while procedurally sound, has been described as a “legal compromise,” balancing popular sovereignty with Bulgaria’s international treaty obligations.
The core of the legal debate revolved around the tension between the direct expression of popular will through a referendum and Bulgaria’s pre-existing commitment to adopt the euro as part of its EU accession treaty. The Court emphasized that while sovereignty resides with the people, they have “voluntarily placed themselves under the action of the Constitution.” This creates a framework where the Constitution acts as a limiting factor on direct democracy, preventing actions that would contradict existing international obligations.
The Court distinguished between initiating a referendum and its outcome, asserting that while the Assembly must consider proposals reaching the 400,000-signature threshold, it retains the authority to assess whether the referendum question aligns with constitutional values and existing legal commitments. This assessment led the Court to conclude that a referendum on euro adoption would be constitutionally inadmissible, as it would attempt to unilaterally modify Bulgaria’s treaty obligations.
Bulgaria’s commitment to adopt the euro stems from Article 85 of its Constitution, which grants ratified international treaties precedence over domestic legislation. Upon joining the EU in , Bulgaria accepted the entire Acquis Communautaire, including the obligation to eventually adopt the euro once convergence criteria were met. The Court reasoned that a referendum seeking to postpone this obligation would violate both the rule of law and the separation of powers.
The Court’s decision, however, isn’t without nuance. Analysts suggest the ruling reflects a pragmatic recognition of Bulgaria’s unique economic and political circumstances. For nearly three decades, Bulgaria has operated under a currency board arrangement, pegging its currency, the lev, to the euro. This has effectively ceded monetary policy control to the European Central Bank (ECB) without granting Bulgaria a voice in its decision-making. Adopting the euro, represents not a loss of sovereignty, but a gain in influence, allowing Bulgaria to participate fully in the ECB’s governance.
This perspective contrasts with the approach taken by the German Federal Constitutional Court in its assessment of European integration. The German court emphasized the preservation of national sovereignty and democratic self-determination, establishing safeguards to prevent the erosion of national control. The Bulgarian Court, however, appears to prioritize the benefits of full integration, even if it requires a degree of constitutional compromise.
The decision to uphold the euro adoption process also comes against a backdrop of internal political instability and rising populism in Bulgaria. By preventing a potentially divisive referendum, the Court sought to mitigate the risk of constitutional incoherence and maintain Bulgaria’s credibility on the European stage. The Court’s “compromise” involved curtailing procedural expressions of popular sovereignty to preserve Bulgaria’s substantive capacity to act as a full monetary sovereign within the EU.
The adoption of the euro by Bulgaria demonstrates that euro area membership remains an attractive prospect, even amidst geopolitical uncertainty. Bulgaria is well integrated with the euro area through trade and financial linkages, with the euro area representing its main trading and financial partner. With a population of approximately 6.5 million, Bulgaria’s GDP accounts for around 0.7% of the euro area’s total GDP. Its economic structure is broadly similar to that of the wider euro area, with industry and services accounting for a significant portion of its gross value added.
the Bulgarian case highlights a key principle of modern European integration: democratic self-government requires not only the ability to make choices, but also the commitment to honor previously made collective decisions. The euro adoption process represents a mature sovereign transforming a self-imposed constraint into an active role in European governance.