Bulgaria Moves Closer to Euro Adoption with Key Legislative Approvals

The Budget Committee has approved both bills submitted by the Council of Ministers for the introduction of the euro and the Law on Credit Institutions. To address the unstable political situation and the risk of early elections, the committee decided to grant a mandate to the Ministry of Finance. This mandate allows the ministry to request an extraordinary convergence report from the European Commission and the European Central Bank within two weeks once the price stability criterion is met, bypassing the need for further parliamentary action.

Martin Dimitrov from "We Continue the Change - Democratic Bulgaria" (WCC-DB) emphasized the importance of this mandate to prevent potential refusals from the European Commission. Asen Vassilev from WCC-DB added that if Bulgaria meets the price stability criterion by the end of 2024, the ministry should request to join the Eurozone by July 1, 2025. Vassilev assured that both the European Commission and the ECB would respect such a request.

Dimo Drenchev from "Revival" pointed out that the proposed exchange rate of 1.95583 leva per euro should be officially recorded. Vassilev agreed, stating that Bulgaria should insist on this rate to protect its citizens' interests.

Upon joining the Eurozone, Bulgarian bank accounts will automatically convert to euros. For one month, citizens can shop using both leva and euros to ease the transition. The dual-currency period is limited to avoid the logistical challenges of businesses maintaining two cash registers.

Bulgarian currency can be exchanged for euros without commission for six months at the Bulgarian National Bank (BNB), commercial banks, and post offices. After this period, only the BNB will offer commission-free exchanges.

BNB deputy governor...