Soon there will be 21 countries – the green light: Bulgaria can introduce the euro

The European Central Bank (ECB) and the EU committee pronounced on Wednesday for admission to Bulgaria to the eurozone. According to this, Bulgaria now meets all the criteria for the introduction of the euro after a few years of delay. The country had to be patient because of excessive inflation rates.

“Important milestone”
“The European Commission came to the conclusion that Bulgaria is ready to introduce the euro from January 1, 2026,” said the EU authority on Wednesday. She spoke about an “important milestone” that Bulgaria would make the 21st Member State in the Euro area.

Final decision on July 8
Chief Ursula von der Leyen committee said that the euro was a tangible symbol of the power and unity of Europe: “Bulgaria has come a step closer to today’s introduction.” Thanks to the euro, the economy of Bulgaria will be strengthened. The financial ministers of the eurozone must still agree what is considered formalism. The final decision must be made on July 8.

EU -Maluta commissioner Valdis Dombrovskis told the “Handelsblatt” that the coming euro was good news to the Eastern European country. Bulgarian households and companies benefited from lower transaction costs and cheaper interest rates in the future. But the eurozone is also strengthened. The growth underlines that the euro is a “stable and attractive currency”.

Bulgaria has a low debt quota
Countries of the European Union that want to introduce the uniform currency must meet the criteria in four areas: inflation, public financing, exchange rate and credit costs in the long term. The Convergence report certifies Bulgaria to meet these criteria. The Bulgarian budget deficit is three percent, the debt speed is the second lowest in the entire EU with 24 percent of the economic output.

The exchange rate of Lews for the euro is stable. As desired, the interest rate level goes in harmony with other Euro countries. Inflation has also fallen sufficiently: it was 2.7 percent in the last twelve months. The ECB is said to have tolerated a maximum of 2.8 percent at the moment, so that inflation does not differ too far from other euros.

Problems with corruption and money laundering
According to EU, Bulgaria still has a few problems with corruption, sometimes inefficient administration and the fight against money laundering. The country is observed from the Financial Action Task Force (FATF), the relevant international institution. However, these are not exclusion criteria for becoming a member of the euro area.

Tens of thousands protested against Euro introduction
However, the positive EU decision is overshadowed by political protests in Bulgaria. During the weekend, tens of thousands demonstrated against the euro. President Rusen Radev, who had proposed a referendum on the new currency, is one of the euro opponents. However, the Pro -European majority in parliament rejected a referendum.

The protests were organized by nationalist, pro -Russian parties in Bulgaria. Dennis Shen of the scope of the rating agency points out that the unstable political situation has contributed to postponing the necessary reforms for access to the euro. In seven parliamentary elections since 2021 it has become clear that the new currency in Bulgaria was controversial.

EU -Maluta commissioner Dombrovskis does not expect the protests to stop Bulgaria’s access to the euro. The Sofia government made its wish clear. Now it is in the other Euro countries to decide.

Six EU countries don’t have the euro
By becoming a member of the European Union, Bulgaria has generally promised to sign up its own currency in favor of the euro. The same applies to six other EU countries that are not yet part of the eurozone (Denmark, Poland, Romania, Sweden, the Czech Republic, Hungary). For various reasons, however, these countries have so far apart from the introduction of the community currency.