The topic of the euro introduction in the country and the protection against speculation continues to be at the forefront of public discourse. Although four months remain until the euro is officially adopted as the currency of Bulgaria, the National Assembly is actively working on adapting the legal framework. At second reading, it adopted the Act amending and supplementing the already enacted and widely discussed Act on the Introduction of the Euro in the Republic of Bulgaria (the “Euro Act”).
The proposed changes aim to provide further clarity on some of the key aspects of the Euro Act, which have raised the most questions from the business sector, such as:
(i) The rules for dual display (in EUR and in BGN) of prices for goods and services, which is mandatory when they are offered to consumers;
(ii) The conditions under which businesses may increase the prices of their goods and services, and respectively – the measures against unjustified price increases in the context of the euro changeover (speculation);
(iii) Administrative control and sanctions.
One of the key changes is the extension of the period during which the prohibition on “unjustified” price increases by traders will apply. Until now, this restriction was planned to remain in force until 01.02.2026, coinciding with the so-called “dual circulation” period – when banknotes and coins in leva will continue to be legal tender on the territory of the Republic of Bulgaria.
However, in order to allow businesses to prepare, during the first two months after 08.08.2025, the control authorities will only be able to issue written prescriptions, but will not be able to fine traders for violations of the above requirements.
During this timeframe, under the current Euro Act, traders are not permitted to increase the prices of the goods and services they offer, unless such increase is due to objective economic factors.
Under the new bill, this prohibition will remain in effect but with an extended duration - it will apply throughout the entire dual price display period, i.e. from 08.08.2025 to 08.08.2026. Naturally, this proposal aims to minimize the risk of speculative price hikes - a subject that has been central in recent public and political discussions - as well as to enhance consumer protection.
To date, one of the most frequently asked questions by the business community has been: what exactly constitutes the term “objective economic factors” under which price increases are considered permissible? In what situations are such factors deemed existing, and how are they evidenced?
In an effort to clarify this issue, the bill refines the definition of “objective economic factors”. Such changes shall be considered to be "external to the trader supplying goods and services to consumers, documented changes in the costs of production, delivery, storage, and sale, as well as regulatory changes, extraordinary circumstances—force majeure, and other factors that have a direct and significant impact on the cost price."
The definition is indicative and intended solely to provide guidance on the types of circumstances that may be accepted as a valid reason for price increases. In all cases, however, the burden of proof that such a circumstance has occurred will lie with the trader.
To prevent unfair practices, an additional obligation is introduced for traders during the dual circulation period - if a consumer pays or receives change in euro, the trader must inform them, upon explicit request, of the value of the paid or received amount in leva.
Another issue of concern to businesses is of a technical nature and relates to the visual presentation of prices of goods and services in both currencies. The bill offers guidance in this regard, stating that prices must be displayed in the same font, style, and color - including the currency indicators, abbreviations, or symbols. The requirement that both prices - in BGN and in EUR – must be positioned in immediate proximity to each other also remains in force.
New provisions are also introduced to ensure more effective access for control authorities to any information related to pricing. Naturally, these authorities will have the right to request information, access commercial premises, and receive cooperation from the inspected parties in connection with any price boost.
To ensure compliance with all rules by the private sector, control powers are assigned to several public authorities - the National Revenue Agency, the Financial Supervision Commission, and the Consumer Protection Commission. In the event of established violations of the prohibition on unjustified price increases, higher sanctions are foreseen.
In light of the changes, traders will need to carefully align their operations with the new requirements. In case of planned price increases, it is recommended to seek legal advice on the admissibility of such increases and how to properly document them to avoid administrative sanctions.
