Another Step Forward: ECOFIN Approves Bulgaria’s Euro Adoption Plan

At a meeting in Luxembourg on June 19, the finance ministers of EU member states unanimously endorsed the Eurogroup’s recommendation for Bulgaria to adopt the euro starting January 1, 2026. The decision was confirmed by Poland’s Finance Minister Andrzej Domanski and welcomed by European Commissioner for Economy Valdis Dombrovskis, who described it as a major step in the accession procedure. The final stage now lies with the European Council and ECOFIN, which are expected to make the definitive decision on July 8 in Brussels.

The convergence reports by the European Commission and the European Central Bank both confirm that Bulgaria meets all the Maastricht criteria for joining the eurozone. With this progress, Bulgaria is set to become the 21st country in the euro area, joining a monetary union that encompasses 20 other EU states and some 340 million people.

During the meeting, Dombrovskis emphasized the need for proactive steps to prevent price speculation around the currency switch. He urged Bulgarian authorities to begin monitoring prices in advance and to continue doing so after the transition. He also called for penalties for businesses that exploit the changeover to raise prices unfairly, underlining that such speculative behavior must be identified and sanctioned publicly.

Finance ministers noted that Bulgaria is pursuing a responsible fiscal policy, which improves the outlook for maintaining inflation within acceptable limits. In previous cases of euro adoption, inflation fluctuations have ranged between 0.1% and 0.3%, a precedent that adds to the confidence surrounding Bulgaria’s transition.

The next milestone will be next week’s European Council summit in Brussels, where EU leaders are expected to endorse Bulgaria’s accession. This will be followed by a vote in the European Parliament and then the final approval by the EU finance ministers on July 8. On that day, two key events are scheduled: a debate in the European Parliament and, later in the afternoon, a final decision by the ECOFIN Council, including a vote on Bulgaria’s fixed conversion rate.

The process is part of a longer journey that began with the Maastricht Treaty of 1992, which laid the foundation for the eurozone and its shared monetary system. Countries wishing to join the euro area must meet specific benchmarks for price stability, sound public finances, and exchange rate alignment. The euro, widely recognized as one of the most liquid global currencies, has become increasingly prominent in international reserves and financial transactions.

Once the legislative process is completed, and the final decision is made, a transitional period will begin in Bulgaria. Starting one month after the confirmation, prices across the country must be displayed in both leva and euro, a measure designed to ensure transparency and protect consumers during the currency shift.