Bulgaria's Path to Euro Adoption Accelerates Following ECB Convergence Report
The European Central Bank confirms Bulgaria meets requirements for eurozone entry by January 2026.
Bulgaria has achieved significant progress towards euro adoption, according to the European Central Bank's (ECB) Convergence Report published on June 4, 2025. The report assesses Bulgaria's readiness for Economic and Monetary Union and positively evaluates the country's compliance with the convergence criteria necessary for joining the euro area.
If successful, Bulgaria is set to become the 21st EU member state to adopt the euro on January 1, 2026.
ECB Executive Board member Philip R. Lane expressed support for Bulgaria's advancements, acknowledging the Nations' determination in fulfilling requisite adjustments.
The report indicates that Bulgaria's economic indicators align with the established criteria, including price stability, fiscal discipline, and compatibility of national legislation with EU mandates.
In terms of price stability, Bulgaria's 12-month average inflation rate in April 2025 stood at 2.7%, slightly below the reference value of 2.8%, which is based on the average inflation rates of the three EU countries with the lowest inflation.
The reference countries are Ireland, Finland, and Italy, averaging inflation rates of 1.2%, 1.3%, and 1.4%, respectively.
Regarding fiscal criteria, Bulgaria has maintained a general government budget deficit of 3.0% of GDP in 2024, which meets the EU's 3% reference threshold.
Bulgaria's gross debt-to-GDP ratio recorded at 24.1% remains significantly below the 60% reference value established by the EU. Furthermore, Bulgaria has not faced excessive deficit procedures since 2012.
From the perspective of exchange rate stability, the Bulgarian lev has participated in the Exchange Rate Mechanism II (ERM II) since May 2023 and did not deviate from its central rate during this period.
Compliance with the long-term interest rate criterion was also demonstrated, as Bulgaria's average long-term interest rate was 3.9%, below the 5.1% threshold.
Additionally, the report highlights that Bulgarian national legislation is compatible with EU treaties and the Statute of the European System of Central Banks, indicating readiness for integration into the euro area.
The formal approval from Brussels follows Bulgaria's request for assessment and comes despite public opposition characterized by protests in various cities, stemming from concerns over potential price increases tied to transitioning currencies.
Critics, including the far-right Revival party, have called for a national referendum on euro adoption, arguing against the currency change due to fears of inflation and economic instability.
Brussels officials have downplayed these fears, asserting that past experiences suggest marginal price increases post-adoption.
They emphasized the monitoring mechanisms in place to safeguard against excessive price hikes during the transition.
Approval from the European Parliament and member states remains necessary for Bulgaria's incorporation into the eurozone, with final decisions anticipated in coming weeks.
If successful, Bulgaria is set to become the 21st EU member state to adopt the euro on January 1, 2026.
ECB Executive Board member Philip R. Lane expressed support for Bulgaria's advancements, acknowledging the Nations' determination in fulfilling requisite adjustments.
The report indicates that Bulgaria's economic indicators align with the established criteria, including price stability, fiscal discipline, and compatibility of national legislation with EU mandates.
In terms of price stability, Bulgaria's 12-month average inflation rate in April 2025 stood at 2.7%, slightly below the reference value of 2.8%, which is based on the average inflation rates of the three EU countries with the lowest inflation.
The reference countries are Ireland, Finland, and Italy, averaging inflation rates of 1.2%, 1.3%, and 1.4%, respectively.
Regarding fiscal criteria, Bulgaria has maintained a general government budget deficit of 3.0% of GDP in 2024, which meets the EU's 3% reference threshold.
Bulgaria's gross debt-to-GDP ratio recorded at 24.1% remains significantly below the 60% reference value established by the EU. Furthermore, Bulgaria has not faced excessive deficit procedures since 2012.
From the perspective of exchange rate stability, the Bulgarian lev has participated in the Exchange Rate Mechanism II (ERM II) since May 2023 and did not deviate from its central rate during this period.
Compliance with the long-term interest rate criterion was also demonstrated, as Bulgaria's average long-term interest rate was 3.9%, below the 5.1% threshold.
Additionally, the report highlights that Bulgarian national legislation is compatible with EU treaties and the Statute of the European System of Central Banks, indicating readiness for integration into the euro area.
The formal approval from Brussels follows Bulgaria's request for assessment and comes despite public opposition characterized by protests in various cities, stemming from concerns over potential price increases tied to transitioning currencies.
Critics, including the far-right Revival party, have called for a national referendum on euro adoption, arguing against the currency change due to fears of inflation and economic instability.
Brussels officials have downplayed these fears, asserting that past experiences suggest marginal price increases post-adoption.
They emphasized the monitoring mechanisms in place to safeguard against excessive price hikes during the transition.
Approval from the European Parliament and member states remains necessary for Bulgaria's incorporation into the eurozone, with final decisions anticipated in coming weeks.
