European Commission Confirms Bulgaria Meets Inflation Criteria Ahead of Euro Adoption

The European Commission has confirmed that Bulgaria meets the inflation criterion necessary for joining the eurozone, despite some factors in April that caused a temporary rise in inflation. This statement came in response to a report by Politico and was shared with BNR (Bulgarian National Radio). The Commission pointed out that the rise was mainly due to increases in administered prices and taxes - those controlled or set by authorities - such as electricity, pharmaceuticals, waste management, VAT, and tobacco taxes.

One notable detail was the sharp reduction in daily hospital fees by 82.8 percent in April, which attracted attention regarding Bulgaria’s control over state-set prices and their impact on consumer inflation. However, the Commission clarified that even without this reduction, Bulgaria would still have met the inflation target. The decrease in hospital fees lowered the 12-month average inflation rate of the Harmonized Index of Consumer Prices by just 0.08 percentage points, meaning the inflation rate without the reduction would have been 2.8 percent instead of 2.7 percent - still within the allowed limit.

Overall, the increase in inflation in early 2025 stemmed from rises in several administered costs, and when factoring in all such changes - including both increases and decreases like those in hospital fees and postal services - the net effect was an inflationary push. The Commission emphasized that these factors raised inflation and did not help Bulgaria meet the criterion in April, but the country’s inflation performance remains compliant.

Meanwhile, the Bulgarian government has reiterated its clear plan to adopt the euro starting January 1, 2026. This was highlighted in an official post on the government’s Facebook page. The final approval from European institutions on the euro adoption is expected in July.

Several important steps are scheduled for the upcoming year: from August 2025 through the end of 2026, prices will be displayed in both lev and euro. Cash receipts will also reflect amounts in both currencies. By September 30, 2025, all state information systems are expected to be ready to handle the change.

Following the official switch, from January 1 to January 31, 2026, cash payments can be made in either levs or euros. Furthermore, between January 1 and June 30, 2026, banks and post offices in areas without bank branches will exchange levs for euros free of charge. The Bulgarian National Bank will continue to provide unlimited free lev-to-euro exchange without any deadline.

Additional detailed information about the transition process is available on the official website evroto.bg, ensuring transparency and accessibility for the public.