Bulgaria Cleared for Eurozone Entry: What’s Next on the Road to the Euro?

Bulgaria has received the green light to adopt the euro as of January 1, 2026. The European Commission announced its positive assessment following the release of this year’s convergence report, confirming that Bulgaria meets the requirements to become the 21st EU member state to join the eurozone. The European Central Bank also backed the move with its own favorable report.

The European Commissioner for Economy, Valdis Dombrovskis, delivered the long-awaited news, confirming that Bulgaria has fulfilled all four nominal convergence criteria. The assessment shows that Bulgaria’s economy is ready for euro adoption, and its national legislation aligns with the EU treaties and the legal framework of the European System of Central Banks. The reports also examine Bulgaria’s economic integration, highlighting developments in areas such as the labor and financial markets, as well as its balance of payments.

European Commission President Ursula von der Leyen welcomed the development, declaring that Bulgaria is on the verge of deeper integration into the EU’s economic core. She emphasized that the euro would strengthen the Bulgarian economy through increased trade, investment, job creation, and access to finance. “Bulgaria will take its rightful place in shaping decisions at the heart of the eurozone,” she stated.

The ECB echoed the Commission’s stance. Chief Economist Philip Lane noted the “enormous efforts” Bulgaria has made to align itself with eurozone standards since the previous report in 2024, which had cast doubts on the country’s readiness. This time, both institutions agreed on the inflation figures - a key turning point, as previous discrepancies between the ECB and EC assessments had raised concerns.

One of the most scrutinized benchmarks, the inflation rate, was met. The threshold stands at 2.8%, and Bulgaria posted a 2.7% average inflation between April 2024 and April 2025. In terms of public finances, the country stayed within the required limit of a 3% budget deficit and maintained a government debt ratio far below the 60% ceiling, ending 2024 with debt at 24.1% of GDP. Long-term interest rates also remain comfortably within the reference value, with Bulgaria reporting a 3.9% rate compared to the 5.9% threshold.

Additionally, Bulgaria has been part of the ERM II exchange rate mechanism since July 2020, a prerequisite for joining the euro. Throughout this period, the national currency has remained stable, with the fixed exchange rate of 1.95583 leva per euro expected to continue.

Despite meeting all technical conditions, the process is not yet complete. Next, the Eurogroup—comprising the finance ministers of eurozone countries - will discuss the Commission and ECB findings during a session in Luxembourg on June 19. On June 20, ECOFIN (the Council of Economic and Financial Affairs) is set to review the reports and formally forward a recommendation to the European Council.

The matter will then be taken up during the EU summit on June 26–27. Finally, on July 8, a decisive meeting of eurozone finance ministers will be held. Three legislative decisions must be adopted for Bulgaria’s accession to move forward. Two require a qualified majority, while the final step—fixing the exchange rate—demands unanimous approval by all eurozone members plus Bulgaria.

The European Commission is expected to propose the formal exchange rate on June 30. No changes to the current fixed rate under the currency board arrangement are anticipated.

Brussels has warned that a short-term spike in inflation may follow the euro's introduction, a trend observed in other member states during their own transitions. The rise is likely to be driven by adjustments in indirect taxes and prices of goods such as energy and food. Still, EU officials believe the inflationary effect will be temporary and minor. The expectation is that wage growth, already evident in Bulgaria, will continue and help balance out price fluctuations.

To safeguard consumers, the EC pointed to Croatia’s example, where a price-monitoring system was put in place during its transition to the euro. The mechanism was designed to prevent unjustified price hikes—a concern that Bulgarian authorities may also need to address, given the persistent fear of inflation among the public.

Not everyone is welcoming the news. A protest against euro adoption took place in central Sofia, organized by the nationalist party "Revival." Demonstrators gathered near the parliament and temporarily blocked traffic on several major boulevards, as well as all entrances to the National Assembly. Police presence was heavy, and tensions ran high, particularly when opposition MPs from "Revival" blocked the parliamentary podium, leading to a brief physical altercation between party deputy Tsoncho Ganev and Yavor Bozhankov from the WCC-DB coalition.

The protest was fueled by false rumors that European Commissioners were visiting parliament on the same day. These were denied by EC spokesperson Balazs Ujvari, though he did confirm that Commissioner Dombrovskis would arrive in Bulgaria later in the evening to discuss the next steps with local authorities.

Asked whether a future Bulgarian government could halt the process, Dombrovskis dismissed the idea, noting that there is no precedent for a country reversing course after meeting the criteria. He reaffirmed that both the Bulgarian government and the central bank are committed to adopting the euro on the proposed date.

With all institutional checks now passed and only political procedures remaining, the final decision on Bulgaria’s eurozone accession is expected on July 8. If confirmed, the country will join the single currency exactly 25 years after the euro first entered circulation.