Government Greenlights New Law Paving Bulgaria's Path to Eurozone Entry

The Bulgarian government has given its nod to a brand-new Law on the Bulgarian National Bank (BNB), specifically designed to facilitate Bulgaria's seamless integration into the Eurozone. This legislation, set to replace the existing law upon the country's adoption of the euro as its official currency, received approval during the Council of Ministers' meeting today. The initial proposal was made available for public discussion in mid-November.

The primary objective of this law is to ensure the legal alignment of the Bulgarian central bank within the Eurosystem, a financial framework encompassing the European Central Bank and the national central banks of Eurozone member states.

The updated law tackles various legal discrepancies highlighted in the European Central Bank and European Commission Convergence Reports for 2022 and earlier assessments. These discrepancies pertained to multiple facets such as monetary policy, statistical data collection, management of international currency reserves, payment systems, issuance of banknotes, selection of auditors, financial reporting, exchange rate policy, and international collaboration.

Crucially, the proposed law delves into the specifics of the euro as a monetary unit, defining the design and administration of the national side of euro coins. It intricately outlines protocols for the release, withdrawal, replacement, exchange, and reproduction of euro banknotes and coins. Additionally, the law explicitly dictates the asset types and instruments in which the BNB reserves can be invested.