ECB president Lagarde backs euro to hold Europe together amid global pressure

Christine Lagarde, president of the European Central Bank, said on Thursday that Bulgaria joining the euro area shows Europe can still act together during global pressure.

Christine spoke in celebration of the euro officially entering circulation in Bulgaria, making the country the 21st European Union member to use the single unit after a formal vote + decision was made in July that locked the conversion rate at 1.95583 Bulgarian lev to one euro, according to a press release by the European Commission.

Lagarde says the euro is a powerful symbol of what Europe can achieve together

In a post on X after the announcement of Bulgaria decision, Lagarde said the euro represents what Europe can do when members work together and face geopolitical stress as a bloc.

She confirmed Bulgaria’s entry into the currency area and welcomed Dimitar Radev, governor of the Bulgarian National Bank, to the ECB Governing Council in Frankfurt. She spoke during official remarks tied to the launch of the currency in Bulgaria.

Dimitar Radev said in a video address that the euro is not just an economic tool. He said it signals belonging and confirms that Bulgaria is part of a system built on shared rules and responsibility. Radev said the country’s work to meet entry standards had now been accepted by European institutions.

With the change, the Bulgarian National Bank becomes part of the Eurosystem, and Radev now has a voting seat on the Governing Council, after only attending ECB meetings as an observer for years.

EU shares banking supervision rules, reserves, and interest rate outlook for 2026

Bulgaria also becomes a full member of the Single Supervisory Mechanism. The country joined the close cooperation framework in October 2020, but the status now expands.

The ECB directly supervises four major banks in Bulgaria and oversees 17 smaller institutions. The ECB also handles bank licenses and reviews buyers of qualifying holdings. Bulgaria holds a seat on the ECB Supervisory Board.

The Bulgarian National Bank paid the remaining share of its contribution to ECB capital and transferred its portion of foreign reserve assets. From 1 January 2026, Bulgarian counterparties can take part in ECB open market operations.

The ECB said it will publish lists of Bulgarian banks subject to reserve requirements, along with branches operating in other EU states already using the euro.

The ECB has not cut rates since June. Markets and economists expect the easing cycle to be over. Policymakers see rates holding at 2% unless major changes occur. Some officials have said the next move, though distant, could be a hike.

Ursula von der Leyen said the euro will make payments and travel easier for Bulgarians and open new chances for businesses inside the single market.

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