As Bulgaria Enters the Euro, Greece’s Pricey Tragedy Calls for Caution

Welcome, Bulgaria, to the eurozone’s arena. On January 1 2026, Sofia joins in as the 21st member, a “glorious milestone” as proclaimed by Prime Minister Rosen Zhelyazkov. Yet, Greece’s experience casts a shadow. Prices in Greece skyrocketed, livelihoods crumbled — so, beware, Bulgaria, for the cost of living can choke a nation’s soul. The Athens saga raises a haunting question: Can the euro prove to be not that much of a blessing?

Greece entered the euro in 2001, dazzled by visions of grandeur. But by 2007, inflation climbed to 4.2 per cent, outpacing stagnant wages. Bread prices leapt from €0.70 to €1.20, milk and rent surged 20–30 per cent. The 2010 debt crisis, with public debt at 126 per cent of GDP, triggered collapse. Bailouts worth almost €300 billion brought savage austerity: Pensions slashed 40 per cent, incomes cut 25 per cent. A generation’s hopes were traded for the Brussels coin.

Would Greece have dodged default outside the euro? With the drachma, devaluation could have spurred exports and tourism, which plummeted 15 per cent and 20 per cent by 2012 under euro constraints. Yet, unchecked monetary policy risks hyperinflation, destroying savings. Default was almost inevitable at a 126 per cent debt-to-GDP, but the euro’s rigid shackles deepened austerity’s wounds. Devaluation might have eased the pain, though possibly creating structural instability.