Economy
Bulgaria close to adopting euro, but faces protests, backlash
EU member Bulgaria is close to realizing its goal of joining the eurozone by adopting the common euro currency and deepening ties with the more prosperous countries of Western Europe. But the government faces a populist backlash against the shared currency on the eve of a key decision by European Union authorities.
Fears of inflation, poverty, and the unknown are mingling with disinformation spread on social media that aims to turn people against the euro. The discontent tracks with increased support for populist and anti-EU parties across Europe, which is exploited by nationalist and pro-Russian politicians in a country that remains one of Europe’s poorest and most afflicted with corruption.
“Adopting the euro will make us feel the threshold of poverty. After all, prices will be in euros,” said 78-year-old retiree Tanya Ignatova.
“Bulgaria is not ready for the euro. Someday we may be ready, but not now,” said another retiree, Mario Georgiev.
Several thousand people rallied against the euro in the capital on Saturday, urging a referendum on whether to transition from the lev currency to the euro. The head of the pro-Russian Varazhdane party, Kostadin Kostadinov, told the crowd that “Bulgaria has risen and declared: Freedom, we choose the Bulgarian lev!”
Others in Bulgaria say the country already benefits from EU membership and it does not matter what the currency is. “We have inflation now and we will have it in the future,” said 26-year-old Konstantin Bozhinov.
Aiming at deepening European integration amid growing geopolitical tensions, the government is pressing ahead. It has asked for a review of whether it meets the requirements of low inflation, sound government finances and legal conformity to EU institutions. On Wednesday, the European Commission will announce the results.
If the commission gives a green light, other member states will decide on Bulgaria’s candidacy in the coming weeks.
At the last review in 2022, Bulgaria failed on the inflation requirement. Inflation has since fallen.
President Rumen Radev has encouraged the anti-euro voices by proposing a referendum on the currency, citing public concerns over inflation and purchasing power. That followed a protest in February that saw the offices of the EU’s executive commission in Sofia spattered with red paint and its entrance set on fire.
The president’s proposal was turned down by the pro-European majority in parliament, which accused Radev of acting in favor of Russia with his last-minute attempt to sabotage the euro adoption.
According to the EU’s multi-country Eurobarometer survey released last week, 50% of Bulgarians are against the adoption of the euro, while 43% are in favor. In contrast, trust in the euro continues to grow across the rest of the EU.
Bulgaria joined the EU in 2007. It has been plagued by political instability and corruption that have fueled euroscepticism among its 6.4 million citizens. Analysts say disinformation campaigns from abroad have fed fears of economic changes that could bring more poverty.
Scores of false claims by opponents of the eurozone have been published on social networks. One claim says the EU plans to take away people’s savings if they fail to spend them within a certain period. Another claims that plans to introduce a digital version of the euro are part of a plan to control everyone.
“There is a powerful brainwashing of the average Bulgarian. Illusory fears are being spread, lies are being told wholesale, unscrupulously and brazenly,” said Ognyan Minchev, director of the Institute for Regional and International Studies in Sofia.
Economists say joining the euro will not bring massive change to Bulgaria’s economy in the short run. That’s because the government has pegged the currency to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.
Joining the euro can bring lower borrowing costs, greater ease in comparing domestic and foreign prices and no need to exchange money when vacationing in another euro country. More than that, it’s a sign of integration into the EU and its large economy. Members get a seat on the European Central Bank’s interest rate-setting committee.
Countries agree to join the euro when they join the EU, but so far, 20 of 27 members have taken the step. Croatia was the last to join in 2023.
Bulgaria’s government has very little debt, at 24.1% of GDP – the second lowest in the EU and well below the 60% level in euro membership criteria. That’s a sharp contrast to its neighbor, Greece, which entered the euro in 1999 with high debt that was concealed through complex financial transactions. Greece’s broken finances eventually triggered a eurozone-wide crisis.
Bulgaria’s government has been “fiscally super conservative … the risk of Bulgaria becoming a fiscal risk to the eurozone is essentially zero,” said Zsolt Darvas, senior fellow at the Bruegel think tank in Brussels.
Fears of inflation are not entirely without basis. Experience in other countries shows that “whenever there is a changeover from national currency to the euro, there is often a minor inflation effect, but it’s typically less than 1%,” said Darvas
Economists say a one-time increase occurs as service providers such as restaurants, which don’t adjust prices as often as other sectors, take advantage of re-doing menus and price lists to implement hikes.
Ryanair CEO Michael O’Leary has extended his contract through 2032, the budget airline said on Friday, in a deal that includes a bonus scheme that could see the 65-year-old Irishman earn more than 150 million euros ($172 million).
Ryanair said last month that talks to extend O’Leary’s tenure to close to 40 years were almost concluded.
O’Leary has been the dominant force at the airline since taking over as CEO in 1994, transforming it from a small regional carrier to Europe’s largest by passenger numbers.
Subject to O’Leary remaining at the group until April 2032, he would be granted the option of buying 10 million shares at 26.70 euros per share if annual profit reached 4 billion euros or if the share price exceeded 42 euros for 28 successive days.
Ryanair last month posted a record full-year post-tax profit of 2.26 billion euros. Its share price stood at 25.70 euros at 1315 GMT, with the strike price in the agreement representing the prevailing market price before the Middle East conflict.
“Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,” the airline said in a statement.
O’Leary did not directly answer an analyst when asked last month if this extension would be his last. A previous share option scheme is set to earn him as much as €100 million after Ryanair hit a share price target in his last contract. O’Leary said the payout would be good value compared to the salaries of football stars.
The airline said O’Leary’s remuneration, comprising a “modest annual salary and a capped annual bonus”, will be tabled at September’s annual general meeting for shareholder approval.
Türkiye’s manufacturing capacity utilization rate increased further in June to the highest level in one year, while factory confidence remained more positive, figures from the central bank showed on Friday.
The capacity utilization rate rose to 74.5% in June from 74.2% in the previous month, the Central Bank of the Republic of Türkiye (CBRT) said.
That marks the highest level since June 2025.
The rise was mainly driven by increased utilization of investment goods, which rose to 73.4% from 70.3%. Meanwhile, capacity utilization for consumer goods weakened to 71.8% from 72.7%.
Separate data on Friday showed the confidence indicator for the manufacturing industry climbed to a four-month high of 103.5 in June from 103.3 in May.
Output expectations over the next three months brightened in June, with the corresponding index rising to 117.6 from 114.3.
The index measuring the current situation of the total amount of orders increased to 88.4 from 87.5. Data showed that the sub-index regarding the general business situation also improved somewhat from 90.4 to 90.9.
Turkish household appliances and consumer electronics manufacturer Arçelik has agreed to buy Whirlpool’s remaining 25% stake in Beko Europe for 71.5 million euros ($82 million), taking full ownership of the unit as it simplifies its partnership with the U.S. group.
The move follows Arçelik’s April 2024 acquisition of Whirlpool’s European operations, after which the U.S. company retained a minority stake in Beko Europe.
Arçelik said a shareholder agreement with Whirlpool had been terminated, but the existing brand licensing agreement would remain in place.
In a separate deal, Arçelik sold shares equal to 2.9% of its capital – previously acquired through a buyback program – to Whirlpool for TL 2 billion ($44 million). The sale price of TL 103.71 per share was at a slight discount to the previous close.
The company also said it had completed all payment obligations related to its 2022 acquisition of Indesit and Whirlpool’s operations in Russia, with a final payment of 40 million euros.
Structure simplified
Cemal Demirtaş, general manager for research at Istanbul-based Ata Invest, said the transactions are expected to result in a net cash outflow of around 70 million euros, while generating a one-off contribution of 100 million euros to 110 million euros to other operating income.
“We view these steps as positive in terms of simplifying the structure and supporting debt management,” Demirtaş said.
He said Arçelik had a market value of about $1.5 billion and net debt of roughly $3.7 billion as of the first quarter, adding that recent asset sales point to a focus on deleveraging.
However, operational pressures remain.
“Both domestic and international operations are still facing challenges in terms of growth and profitability. A recovery in demand and margins is critical to strengthen cash flow and reduce leverage,” Demirtaş said. “Otherwise, high debt levels could continue to weigh on the stock.”
Arçelik shares were up 0.1% at 10:01 a.m. GMT.
Treasury and Finance Minister Mehmet Şimşek said Friday that Türkiye and Germany have significant potential to deepen cooperation in key industries and strengthen partnerships in third-country markets.
Şimşek’s remarks came after he met with German Economy and Energy Minister Katherina Reiche in Ankara, where the two sides discussed bilateral economic ties, opportunities for closer cooperation and recent geopolitical developments.
Reiche arrived in the Turkish capital for two days to help foster new and deeper business activity in Türkiye. She was accompanied by representatives from the energy, tourism and technology sectors.
In a post on social media following the talks, Şimşek said Türkiye and Germany were “natural strategic partners” at a time when companies and governments worldwide are seeking to diversify supply chains and reduce vulnerabilities.
“There is tremendous scope to expand our cooperation in defense and aerospace, mobility, energy and digital transformation,” he noted.
“There is also significant potential to strengthen our partnerships in third-country markets where both countries already maintain a strong presence,” Şimşek added.
Germany is Türkiye’s largest trading partner, with bilateral trade volume exceeding $52 billion, and is one of the leading sources of foreign direct investment in the country.
Reiche said the two countries intend to deepen their economic ties, highlighting Türkiye’s role as a commercial, energy and security partner.
“We need Türkiye as a reliable trading partner, but also to achieve common political goals,” she noted.
She drew attention to Russia’s invasion of Ukraine and the war in Iran, which she said she hoped would be brought to a permanent end.
Trade, energy ties
Reiche also met with Turkish Trade Minister Ömer Bolat as part of the Türkiye-Germany Joint Economic and Trade Commission, or JETCO, meeting.
The two gave a positive assessment of the trade development between the two countries, with the German minister noting that Türkiye is the European Union’s fifth-largest trading partner.
Germany’s trade with Türkiye accounts for about one-quarter of the bloc’s total trade with the country, she said.
During the meeting, the officials signed a new economic cooperation protocol and reaffirmed their goal of increasing bilateral trade to $60 billion.
The talks covered trade, investments, industrial cooperation, energy transition, green and digital transformation, transportation, connectivity and potential cooperation in third countries, Bolat said.
Turkish companies have invested nearly $3 billion in Germany, while German companies rank first among foreign investors in Türkiye, operating about 8,600 firms and holding $26.5 billion in direct investments, he noted.
Reiche said investments by German companies in Türkiye were wide-ranging, adding that “the reverse is also true.” German investors wanted to further expand their position on the Turkish market in the future, she added.
In addition to being an important NATO ally, Reiche also sees Türkiye as a valuable partner in Germany’s efforts to diversify its gas and electricity supplies, particularly following the global upheavals caused by the closure of the Strait of Hormuz as an oil supply route.
“We cannot just stand by and watch passively,” she said. Both sides agreed to expand their energy partnership, established in 2012. “Let us turn today’s challenges into tomorrow’s strengths,” Reiche added.
In response to the recent oil crisis, she argued, there must be a parallel focus on multiple energy sources. Germany and Türkiye agree that there must be openness to different technologies – “and openness to everything that companies bring to market.” Both sides have set out their energy objectives in a protocol.
Customs union, visas
Bolat said the protocol they signed records progress achieved by both sides and provides a road map for future cooperation.
The ministers also discussed the modernization of the Türkiye-EU Customs Union.
“As the EU shapes new trade, industrial and sustainability policies, including the ‘Made in EU’ framework, it is vital that these initiatives remain inclusive,” Bolat said.
“These policies must strengthen the highly integrated supply chains built over decades,” he added.
Visa facilitation was also on the agenda, particularly Germany’s “cascade” visa system, which Bolat said has helped improve visa appointment and application procedures since July last year.
“Visa rejection rates have fallen from around 25% to 14%. At this point, the German side plans to accelerate the process regarding businesspeople, students, artists, NGO members and transporters,” he said.
“We once again emphasized our justified demands for visa-free travel for Turkish citizens,” he added.
Later on Friday, Reiche was expected to attend the German-Turkish Energy Forum with Energy and Natural Resources Minister Alparslan Bayraktar.
Before departing for the Turkish capital, she said German companies should benefit in the coming years from the country’s announced multibillion-euro investments.
They have the opportunity to tap into the Eurasian market thanks to highly qualified Turkish specialists, she added.
The economy minister described Türkiye as an energy hub between Europe, the Middle East and the Caucasus.
“Türkiye is not only a reliable partner – it is clearly focused on growth in the energy sector,” she said.
The COP31 climate conference in Türkiye later this year could become “the summit where political commitments turn into measurable progress,” a top German official said on Thursday.
The energy crisis triggered by the war in the Middle East has fueled calls for countries to shift away from fossil fuels and step up efforts to deploy renewable energy.
“The collective experience with the Strait of Hormuz, and how vulnerable most of us are to fossil-fuel price shocks, could make the decisive difference,” German Environment Minister Carsten Schneider said.
“Climate action today is also about economic strength, security of supply and competitiveness.”
Schneider’s remarks came after a two-week annual U.N. climate change talks in the western German city of Bonn wrapped up.
Bonn is where texts are drafted and differences are narrowed ahead of the decisions taken by political leaders at the U.N.-sponsored COP31 climate talks, which are due to start Nov. 9 in Antalya, southern Türkiye.
Schneider said the Bonn meetings had shown that the Paris climate agreement remained the common benchmark despite geopolitical tensions. “Now its implementation must accelerate significantly,” Schneider told dpa.
He called on more countries to submit ambitious new climate targets ahead of COP31. Türkiye will host the summit, while Australia will oversee the formal negotiations.
Backsliding risk amid geopolitics
U.N. climate chief Simon Stiell said Thursday countries made some progress at the Bonn talks, but warned against backsliding as geopolitical tensions stalk negotiations.
In a statement, Stiell said “real strides” were made on issues including ensuring a “just transition” to ensure the shift to a low-carbon economy is fair and inclusive.
He also recalled that Türkiye unveiled a target to make electricity account for one-third of the world’s energy demand by 2035.
The aim would be to shift transport, heavy industries, and home heating away from running on oil, coal and gas, to instead use technologies like electric industrial furnaces, electric cars and heat pumps.
“In key areas we’ve taken real strides forward,” Stiell said, while acknowledging that “in others, we have seen some side-stepping and stalling. We’ve seen geopolitical tensions washing through these halls.”
“We simply cannot afford to reopen previous decisions, to renegotiate existing targets, or to backslide,” he said.
He warned countries against “cherry-picking” the global commitments that “suit tactically in the moment.”
He cited commitments to science, the Paris Agreement’s ambitious goal of limiting warming to 1.5C from preindustrial levels and pledges by rich nations to provide more climate finance to developing countries.
Environmental groups praise Türkiye’s proposal
At the same time, environmental organizations gave the Bonn conference a mixed assessment.
They welcomed the proposal by the Turkish government to increase the global share of electricity in final energy consumption from 20% to 35% by 2035.
Laura Schafer from pressure group Germanwatch praised the initiative as a “positive sign,” adding that it was “crucial to underpin this target with concrete national measures – including in Germany.”
Oxfam climate expert Jan Kowalzig emphasized that “electrification is, in principle, an important step toward climate neutrality, but only if it is accompanied by a consistent transition to renewable energy.”
On the other hand, the organizations agreed that the pace of the conference had been far too slow.
“We have witnessed structural paralysis here in Bonn,” warned Greenpeace climate expert Jannes Stoppel. Negotiations were progressing in “baby steps” when “giant strides” were needed, he said.
Fentje Jacobsen of WWF Germany said climate finance had once again remained a major sticking point.
The climate crisis can only be halted if coal, oil and gas take a back seat and renewable energies shape the future, Jacobsen said.
“But here, too, concrete progress is lacking. We can see that in Germany as well. The federal government is currently putting on the brakes instead of pushing ahead with the energy transition at full speed,” she said.
Climate facts increasingly challenged
U.N.’s Stiell criticized what he described as a tendency for countries to wait for others to act first.
“In some negotiating rooms, we’ve heard a familiar tendency toward you-first-ism: Groups refusing to deliver commitments or allow the process to move forward unless others go first.”
Representatives from several countries, including Switzerland, Sierra Leone and Pacific island states particularly affected by rising sea levels, complained at a press conference that facts about the climate crisis were increasingly being challenged during the negotiations.
They argued that the conferences were intended to find solutions to climate change, not to debate the current state of scientific knowledge.
Schneider backed those concerns and also criticized attacks on the scientific foundations of climate research.
“It is encouraging that a large number of countries from both the Global South and the Global North are standing together against this,” he said.
More than 6,500 delegates from governments, the scientific community, business and civil society from almost all U.N. member states have attended this year’s Bonn conference.
Türkiye completed its longest and fastest metro line on Friday with the opening of the final section of the project that further expands Istanbul’s rail transport network and strengthens links between the city center and its main airport.
President Recep Tayyip Erdoğan attended the inauguration of the 22-kilometer (13.7-mile) Halkalı-Arnavutköy section, the last phase of the project that he said would significantly improve transportation for millions of Istanbul residents.
The final leg brings the total length of the fully underground Gayrettepe-Istanbul Airport-Halkalı line to 69 km. The route includes 16 stations.
“We are weaving our city, one of the world’s largest metropolises, with a population of 16 million and nearly 20 million annual visitors, stitch by stitch with a network of railways,” Erdoğan told the opening ceremony.
Before the event, he inspected the line, telling reporters that it’s “a manifestation of a modern vision.”
The first 47-kilometer section was put into service gradually in recent years.
The Kağıthane-Istanbul Airport leg was inaugurated in late January 2023, the Kağıthane-Gayrettepe section was opened in late January 2024, while the Arnavutköy-Istanbul Airport leg was launched in March of the same year.
The opening of the Halkalı-Arnavutköy section marks the completion of “one of the longest metro lines not only in Türkiye but in the world,” Erdoğan said.
The line will operate at speeds of up to 120 km per hour, making it Türkiye’s fastest metro route and one of the longest underground airport metro connections in the world.
The newly opened section includes five stations: Ibn Haldun University, Kayaşehir, Olimpiyatköy, Halkalı Stadium and Halkalı.
With the addition of these stations, around 1.5 million residents in Istanbul’s Başakşehir and Küçükçekmece districts will gain direct rail access to both the city center and Istanbul Airport.
The route is integrated with several major transportation networks.
At Halkalı station, passengers can connect to the Marmaray commuter rail system running beneath the Bosporus, high-speed rail services, the Halkalı-Bahçeşehir suburban line and the Yenikapı-Kirazlı-Halkalı metro line.
Additional transfers are available to the M3 metro line at Kayaşehir, the M9 line at Olimpiyatköy and the future M7 extension at Halkalı Stadium.
“Millions of our citizens now have easy access to central locations in Istanbul,” said Erdoğan.
Travel times on the completed route will be significantly reduced, with journeys between Halkalı and Istanbul Airport estimated to take around 30 minutes and trips between Halkalı and Gayrettepe lasting 57 minutes.
The line also incorporates Türkiye’s first domestically developed railway signalling system, produced by defense electronics company Aselsan.
The network will operate using a fully automated driverless system. Of the 25 train sets deployed on the route, 15 were manufactured to fully driverless standards.
The government estimates that the project will generate total economic benefits of 935 million euros (nearly $1.1 billion) by 2043 through time savings and lower road maintenance and operating costs.
Officials project that reduced traffic congestion alone will save travellers approximately 117 million hours over the period.
Message from Minister of Justice Akın Gürlek on the fight against street gangs: Our operations will continue with determination until their roots are eradicated.
Ryanair CEO O’Leary gets 6-year extension with possible $172M bonus
BREAKING NEWS… Türkiye is on the heels of FETO traitors! SABAH reached the names whose extradition was requested: Enes Kanter, Emrullah Uslu, Bekir Baz, Ahmet Can…
Message from Minister of Justice Akın Gürlek on the fight against street gangs: Our operations will continue with determination until their roots are eradicated.
Ryanair CEO O’Leary gets 6-year extension with possible $172M bonus
BREAKING NEWS… Türkiye is on the heels of FETO traitors! SABAH reached the names whose extradition was requested: Enes Kanter, Emrullah Uslu, Bekir Baz, Ahmet Can…
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