Bulgaria Eyes 2026 for Euro Adoption, Says Finance Minister

Bulgaria is expected to adopt the euro at the beginning of 2026, rather than mid-next year as previously forecasted. This update was provided by acting Deputy Prime Minister and Minister of Finance Ludmila Petkova, who emphasized the need for technological time to meet the final criterion for euro adoption. Following this, new convergence reports must be requested from Brussels and Frankfurt to secure a date for entering the Eurozone.

Petkova explained that once Bulgaria meets the inflation criterion, time is required for the European Commission and European Central Bank to prepare the convergence reports. This is followed by a draft decision from the Council and unanimous approval from euro area member states. For instance, if the report is ready by March or April, the remaining two or three months until July 1 are insufficient to prepare the country for a smooth transition to the euro.

Currently, Bulgaria does not meet the inflation criterion for eurozone entry, with an annual average inflation rate of 5.1%. Despite reductions from 13% in 2022 and 8.6% last year, the decrease is still not enough. The reference value stands at 3.3%, calculated by averaging the lowest rates from Denmark, Belgium, and the Netherlands, then adding 1.5 percentage points.

Both the caretaker government and the European Central Bank anticipate Bulgaria will meet this criterion by year-end. Upon achieving this, Bulgaria will request an extraordinary convergence report. Acting Prime Minister Dimitar Glavchev confirmed at the Council of Ministers meeting that Bulgaria is expected to meet all criteria, including price stability, by the end of the year, after which they will request the necessary reports to demonstrate readiness for Eurozone entry.

At the same...