Bulgaria introduces dual price labeling in leva and euro

From August 8, 2023, Bulgaria entered a new stage in its preparation for adopting the euro as its official currency. According to the amendments to the Law on the Introduction of the Euro in the Republic of Bulgaria, adopted by the National Assembly on July 30 and promulgated on August 8 in the State Gazette, all prices in the country must now be displayed in both leva and euros.

This period of dual price labeling will continue for one year, until August 8, 2026. The law requires prices in both currencies to be placed in close proximity, to be clearly and legibly written, with the same size, type, and color font. The same applies to the currency designation.

To facilitate the transition, the legislator has provided a two-month grace period during which regulatory bodies will not impose sanctions for violations. This gives businesses time to adapt to the new requirements. During this period, the Consumer Protection Commission (CPC), the National Revenue Agency (NRA), the Bulgarian National Bank (BNB), and the Financial Supervision Commission (FSC) can only issue written prescriptions for violations such as lack of dual price labeling in commercial establishments or on receipts. However, after October 8, regulatory bodies will begin imposing fines between 5,000 leva and 1 million leva for non-compliance with the requirements.

A reporter's check by the Bulgarian News Agency (BTA) across the country showed that large retail chains have already complied with the dual labeling requirements. Many small traders have also complied with the new requirements, although some are still waiting to introduce dual price labeling.

In large cities such as Blagoevgrad, Burgas, Varna, and Veliko Tarnovo, most grocery stores, restaurants, and retail outlets have already introduced dual labeling. However, some smaller traders are taking advantage of the grace period until October to complete the relabeling process.

Interestingly, even religious institutions in Varna have complied with the new requirements, with the city's places of worship announcing their prices in both currencies. Additionally, mobile applications for public transport and paid parking in the seaside capital have also introduced dual price labeling.

In smaller towns and villages, the situation is more diverse. While some traders are already fully prepared with dual labeling, others are still in the process of adaptation. For example, in Kyustendil, some traders still do not display their prices in euros, and in Montana, the lack of dual labeling is mainly observed in neighborhood stores.

The transition to dual labeling creates some challenges for both traders and consumers. In Kazanlak, for example, some pensioners share that the dual designation is confusing and they have to check prices several times. In Sliven, owners and employees of commercial establishments express dissatisfaction with the need to update cash register software and change labels, especially in establishments with a large assortment.

Despite the challenges, most traders and consumers realize the importance of this transition as a step towards introducing the euro as the official currency in Bulgaria. Although payment in euros will only become possible from January 1, 2026, dual labeling is a key measure to prepare society for this significant change in the country's financial system.

Overall, BTA's reporter check shows that Bulgaria is on track to successfully complete this important stage of its preparation for the introduction of the euro, despite some initial difficulties and challenges. The coming months will be critical for the full implementation of the new requirements and for the adaptation of all participants in the trading process to this new reality.