PM Denkov Confirms: Bulgaria Aims to Join Eurozone on January 1, 2025

Prime Minister Acad. Nikolai Denkov, during discussions with Eurogroup President Paschal Donohoe at the World Economic Forum in Davos, unveiled Bulgaria's ambitious goal of becoming a member of the euro area by January 1, 2025. The focal point of the talks revolved around the necessary measures to bolster Bulgaria's eligibility, with a specific emphasis on meeting the stringent Maastricht criteria. While Bulgaria currently fulfills all criteria except for inflation, Prime Minister Denkov expressed confidence that addressing this concern would pave the way for a smooth integration into the euro. Finance Minister Asen Vassilev emphasized Bulgaria's positive economic indicators, including a commendable 2.2% GDP deficit, earning favorable remarks from Eurogroup President Donohoe.

The Eurogroup President's appraisal affirmed that Bulgaria's progress in meeting the required criteria was commendable, and the only outstanding concern was related to inflation. Denkov reiterated that much of the inflation was externally influenced, highlighting that full control over such factors rested beyond the government's immediate capabilities. Despite this, the Eurogroup President underscored that resolving the inflation challenge would essentially remove any impediment to Bulgaria's eurozone aspirations.

Finance Minister Vassilev added that Bulgaria's economic achievements, particularly the 2.2% GDP deficit, were highly appreciated. The final assessment, set to be released in June alongside the European convergence reports for 2024, will factor in Bulgaria's inflation data from May. Vassilev noted that Bulgaria had made significant strides, with inflation falling below 5% on the national measure in December. He emphasized the importance of passing legislation related...