Bulgarian Parliament Takes Key Step Toward Euro Adoption with Overwhelming Support

The Bulgarian Parliament has passed at first reading a bill amending the Payment Services and Payment Systems Act, aimed at aligning the country’s legal framework with eurozone requirements. The changes, proposed by the Council of Ministers, were backed by 122 MPs, with 39 voting against, BTA reported. The legislation adjusts national rules for payment oversight and services in anticipation of Bulgaria’s euro adoption.

The amendments were supported by GERB, "We Continue the Change–Democratic Bulgaria" (WCC-DB), DPS – "New Beginning," BSP – United Left, DPS-Dogan and "There Is Such a People" (TISP). Altogether, these parties hold 184 seats - more than three-quarters of the total, a parliamentary majority sufficient not only for such legislation but also for major constitutional decisions, including electing members of the Supreme Judicial Council or initiating constitutional amendments via the fast-track procedure.

All these parties campaigned on a platform favoring swift accession to the eurozone. While the BSP has shown some hesitation, even without their votes the remaining pro-euro factions number 165 MPs - more than two-thirds of parliament - still enough to pass constitutional changes via the standard track or select members for key institutions.

Notably, Article 103, paragraph 2 of the Constitution allows the impeachment of the president with a two-thirds majority. In theory, the current pro-euro coalition would have the numbers to initiate such proceedings, highlighting the scale of support for Bulgaria’s European path within the legislature. This stands in contrast to President Rumen Radev’s repeated calls for a referendum on euro adoption - an initiative he justifies by citing the will of the people.

This parliamentary configuration reflects a consistent trend. Over the past few years, Bulgaria has gone through seven rounds of elections, each yielding similar results - firm backing from the majority of parties for continued integration with the EU.

Opposing the current changes were "Revival," MECH, and "Greatness," who voted against the proposed revisions to the law on payment services.

The draft law includes a number of technical modifications to prepare for the transition to the euro. This involves updating various legal texts to replace values expressed in leva with their euro equivalents, as required by EU regulations. One of the key elements is the incorporation of Regulation (EU) 2024/886, which sets common standards for instant euro credit transfers across EU member states. A formal definition of "instant credit transfer" is also introduced in the legislation.

Additionally, the amendments ensure Bulgaria’s compliance with the rules of the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET). The Bulgarian National Bank (BNB) will operate the national component of the TARGET system (TARGET-BNB), and once the euro is introduced, the current BNB-operated RINGS settlement system will be discontinued. Provisions are included for repealing the relevant sections of the law accordingly.

The law also proposes changes to basic payment accounts, particularly for pensioners, students, and doctoral candidates. Users of such accounts will be allowed to make up to three credit transfers per month - via bank branches or online - as well as three cash withdrawals through ATMs or POS terminals of their servicing bank, without incurring fees.