Draft Law on Euro Introduction Open for Public Discussion

The Ministry of Finance has made public the draft Law concerning the implementation of the euro in the Republic of Bulgaria, inviting public discourse. The objective of this initiative is to facilitate the seamless integration of the euro into Bulgaria and enhance transparency and understanding regarding the adoption process of the unified European currency within the nation.

Scheduled for public scrutiny until April 24, 2024, the draft law is meticulously crafted to ensure Bulgaria's smooth transition to the single European currency. Developed by an interdepartmental working group at the Ministry of Finance, in collaboration with stakeholders including the Bulgarian National Bank, various ministries, institutions, business representatives, and academic experts, the draft law has received a positive opinion from the European Commission.

The proposed legislation outlines the principles, rules, and procedures governing the introduction of the euro as Bulgaria's official monetary unit. Crucially, the date of Bulgaria's accession to the Eurozone and the exchange rate of the Bulgarian Lev (BGN) to the euro will be determined by the Council of the European Union through unanimous agreement among Eurozone member states and Bulgaria.

Emphasizing Bulgaria's commitment to Eurozone accession, the draft law emphasizes continuity with the current fixed exchange rate, as affirmed in the National Plan for the introduction of the euro and a parliamentary decision from October 2022.

The proposed legislation outlines procedures for rounding off values ​​of goods and services, as well as various financial assets and benefits, following their revaluation. This includes bank accounts, securities, remuneration, pensions, social benefits, compensations, and more.

Key provisions of the draft law address various aspects of the transition, including methods of rounding after currency revaluation, conversion of bank accounts into euros, and exchange of banknotes and coins. Account holders will see their accounts automatically converted into euros upon the euro's introduction, with subsequent withdrawals limited to euros only.

Furthermore, the legislation ensures free and unlimited exchange of banknotes and coins from leva to euros by the Bulgarian National Bank, with credit institutions and select branches of the Bulgarian Post offering free exchange during the initial six months following the euro's introduction.

To facilitate consumer adaptation, prices of goods and services will be displayed simultaneously in both BGN and euros for up to 12 months after the euro's introduction. Merchants will be mandated to accept both currencies during one month of dual circulation, after which the lev will cease to be legal tender.

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