The Euro, Financial Literacy and the Experience of Other Countries: A Comparative Analysis

Victor Yotzov

Economic Thought journal, 2025, issue 4, 484-512

Abstract: The article analyses the pivotal role that financial literacy will play in Bulgaria’s forthcoming adoption of the euro, portraying the transition as a fundamental transformation that entails significant opportunities alongside systemic risks. Empirical evidence reveals a capability gap that could deepen market inefficiencies, stimulate price speculation and fuel public discontent. The study identifies the economic and social imperatives of literacy: facilitating price comparisons, protecting consumers from fraud and strengthening trust in the monetary changeover. A multi-layered national strategy is advocated, combining (1) systematic financial education at every scholastic tier; (2) large-scale informal programs for vulnerable adults; (3) digital calculators and mobile applications; (4) communication campaigns adapted to demographic specifics; and (5) coordination among government, the Bulgarian National Bank, business and NGOs. Comparative scrutiny of Estonia’s, Lithuania’s and Croatia’s changeovers isolates proven instruments: mandatory dual price display, business ethics codes, free cash exchange and mobile information teams. Evidence from these cases shows that the mix of preventive inspections, public disclosure of violators and fines limits the one-off inflationary effect while bolstering public confidence. Enhanced literacy, in turn, reinforces economic integration through lower transaction costs, greater investment appeal and stabilised inflation expectations. The article concludes by urging Bulgaria to adopt an urgent communication strategy with measurable milestones (≥ 80 % awareness, ≥ 60 % support), to intensify price oversight and to frame euro adoption as an “inter-sectoral social contract” requiring strategic managerial resolve.

JEL-codes: D14 E42 F36 H12 I22 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econth:y:2025:i:4:p:484-512

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