Bulgaria will become the 21st member of the Eurozone on January 1, 2026. The country will replace the lev, which has been pegged to the euro at 1.95 BGN per 1 EUR for 25 years.
Although Bulgaria will enter the Eurozone with the lowest per‑capita income (€26,300), close to Greece’s level (€27,000 in 2024), it stands out for its economic momentum, with growth of 3.4 percent in 2024—well above the European average. Above all, Bulgaria will become the third least‑indebted country in the Eurozone, with a debt‑to‑GDP ratio of only 26.3% in 2024, similar to Luxembourg (25.1%) and Estonia (23.2%).
Our analysis
Bulgaria’s entry into the Eurozone will slightly improve the area’s aggregate growth and debt indicators, although the overall impact will remain limited given the country’s modest demographic and economic weight. Bulgaria’s GDP stands at around €100 billion, compared with €15.2 trillion for the Eurozone as a whole.
From an investor perspective, the Bulgarian equity market was notably strong in 2025 (SOFIX: +25.9% YTD as of December 11), yet its total market capitalization remains very small at about €10 billion. The sovereign bond market is similarly limited: in 2025, Bulgaria completed only two sizeable euro‑denominated issuances (€4 billion on April 28 and €3.2 billion on July 15), and its sovereign yields have broadly converged toward those of France.
Written on December 12, 2025. Opinions subject to change. This document has no pre-contractual or contractual value. It is provided for information purposes. The analyses and/or descriptions contained in this document should not be considered as advice or recommendations from Lazard Frères Gestion SAS. This document does not constitute a recommendation to buy or sell securities, nor does it encourage investment. This document is the intellectual property of Lazard Frères Gestion SAS - 352 213 599 RCS Paris 25, RUE DE COURCELLES - 75008 PARIS
/fuel-prices-24-07-2026/cover.gds.24.07.2026.png "Fuel Prices: Refining Margins Rise Alongside Crude Oil")
/Design%20sans%20titre%20(41).png "Japan’s Stock Market Hits New Highs")
/73cd85c0-dfc6-432a-8732-f0f3ee333b7f-gemini-image-gen-img-g-t7dh79jhgbdqtyl3orh-825x510.png "US Hyperscalers Are Becoming Major Issuers in the Euro Bond Market")