New Delhi, Jan. 3 -- Bulgarians began withdrawing euros for the first time on Thursday after the former communist nation joined the euro currency union as its 21st member.

Cash machines in the capital, Sofia, dispensed brand new euro banknotes, replacing the lev, which will still be in use for cash payments in January. However, people will receive only euros in change.

The country of nearly 6.7 million people was one of the poorest when it first became a member of the European Union in 2007. Joining the European single-currency system means deeper EU integration after its 1989 transition from a Soviet-style economy to democracy and free markets.

However, the historic milestone arrives amid political instability, with the conservative-l...