On New Year’s, Bulgaria becomes the 21st country to join the Eurocurrency Union, thereby further integrating into the European Union. But the historic turning point comes amid political instability and skepticism among ordinary people fueled by fears of rising prices.

Supporters of switching to the euro from the old currency, the leva, hail the move as one of the biggest achievements since the 1989 transition from a Soviet-style economy to democracy and free markets. They hope that this will make the country more attractive to investors and strengthen its orientation towards wealthier Western Europe.

But many people are uneasy in a country where corruption is widespread and trust in government is low. One is the fear that traders will round up prices or otherwise use the transition to worsen inflation, at a time when inflation has returned to 3.7%.

An EU Eurobarometer survey from March showed that 53% of the 1,017 people surveyed were against joining the eurozone, while 45% were in favor. A separate Eurobarometer poll, conducted between October 9 and November 3 on a similar sample, found that around half of Bulgarians oppose the single currency, while 42% were in favor. The margin of error was about plus or minus 3.1 percentage points for the March poll.

The government successfully completed the process of adopting the euro by lowering inflation to 2.7% earlier this year to comply with EU rules and get the approval of EU leaders. But after removing that obstacle, a new chapter of political chaos followed. The government resigned after less than a year in office amid anti-corruption protests across the country. Because of this, the country was left without a regular budget for next year and is holding back plans for long-awaited structural reforms and decisions on the use of EU support funds.

New elections — the eighth in five years — are expected to be held next spring.

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Nevelin Petrov, 64, said he welcomes the euro. “Bulgaria is a full member of the European Union and its rightful place is alongside other developed and democratic European nations,” he said. “I am convinced that the introduction of the euro will contribute to the long-term prosperity of our country,” he said.

Others, like Darina Vitova, who runs a pedicure salon in Sofia, said things were moving too fast, although she welcomed the change “in principle”.

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“The standard of living and income in our country are far from those in the richest European countries, and prices are rising here and the life of the average person will be increasingly difficult,” she said. She admits that when she goes to the beaches in neighboring Greece, it will be more convenient for her to pay with the same “pocket money” she uses at home.

With its 6.4 million inhabitants, Bulgaria is one of the poorest members of the European Union out of 27 countries. The average monthly salary is 1,300 euros ($1,530).

Countries that join the EU commit to the euro, but actual accession can take years, and some members are in no rush. Poland in particular has recorded strong economic growth since joining the EU in 2004 without adopting the euro.

Opponents of accession fueled fears that the changes would allegedly lead to greater poverty and a loss of national identity. Social media is spreading misinformation such as false claims that the euro could lead to the seizure of bank accounts. Nationalist and pro-Russian groups exploit these fears.

European Central Bank President Christine Lagarde said countries experienced a slight, transient rise in prices of 0.2%-0.4% immediately after joining. The price increase may be more apparent than real, as coffee shops and hairdressers may delay the printing of new menus and price lists before the changes, so the price increases are only delayed and not caused by the euro.

Anti-euro rallies were organized by the pro-Russian Vazrazhdane party in May and September, but they were smaller than the mass protests that brought down the government. While the anti-euro protests were supported by older people based on economic anxiety, the mass protests that toppled the government appeared to represent a younger electorate fed up with corruption and eager for European integration.

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Anti-euro disinformation spread by pro-Russian politicians and social media is aimed at “reducing support for the European Union, NATO and Ukraine,” said Dimitar Keranov, program coordinator for Central European inclusion at the German Marshall Fund in Berlin.

Bulgaria’s European integration “is not in Moscow’s interest at all, so if it can somehow polarize society and weaken support for the European Union, that is what it is trying to achieve,” he said.

Adopting the euro is another way to combat Russian influence, he said: “The more Bulgaria advances in its European integration, the harder it becomes for Russia to influence the country.”

Petar Ganev, an analyst at the Sofia-based Institute for Market Economics, said the departure of the outgoing government sent a signal of uncertainty to foreign investors.

“Instead of capitalizing on the adoption of the euro as a strong and positive signal to the international community – to investors, borrowers and those investing in Bulgarian assets and economic activity – we risk sending the opposite message,” Ganev said in an interview with The Associated Press.

Ganev believes that eurozone membership should be seen as an opportunity, an additional mechanism to solve the problems of corruption and the rule of law, although it cannot by itself solve Bulgaria’s chronic cycle of elections and political fragmentation and instability.

Local economists believe that joining the euro will not bring dramatic changes to the Bulgarian economy. This is because since 1999, the lev has been tied to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.

The lev and the euro will be in dual use for cash payments throughout the month of January, but citizens will receive only euros in change.

McHugh reported from Frankfurt, Germany. Valentina Petrova in Sofia contributed to this report

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