The study aims to analyze the costs, benefits and effects for Bulgaria of joining the euro area. On one hand there are risks for Bulgaria of adopting the euro. The study presents how other countries that have already adopted the euro overcome some of these risks. On the other hand, there are a lot of benefits of joining the euro area. The most substantial are: access to the ECB's monetary policy instruments, improving the country's credit rating, reducing the risk premium, and hence increasing…