Bulgaria and the euro

Bulgaria could potentially adopt the euro on July 1, 2025, if all the necessary steps are taken within the required timeframe.

Bulgaria faces significant challenges on its path to euro adoption, with political instability emerging as a critical hurdle rather than inflation. While inflation rates have shown signs of cooling—decreasing by 1% from August to September and 1.2% year-on-year—Bulgaria still has not met all the Maastricht criteria necessary for eurozone entry.

Fitch Ratings has confirmed Bulgaria's long-term credit rating at BBB with a positive outlook. The agency highlighted that the rating is bolstered by the country's robust external and fiscal position when compared to similarly rated nations, as well as the stable political framework provided by EU membership and the enduring currency board regime.

The Bulgarian Ministry of Finance is working on a budget with a deficit of up to 3% on an accrued basis, confirmed Deputy Minister Martin Danovski. This figure aligns with the Maastricht Treaty criteria, which is essential for Bulgaria's entry into the Eurozone.

Bulgaria is planning to transition from the leva (BGN) to the euro (EUR) in just over a year as part of its strategy to enter the Eurozone. While the exact date remains uncertain, the implications of this shift are clear. The newly adopted euro law outlines the process and addresses potential consequences of further delaying Eurozone membership.

The right-wing party "Revival" (Vazrazhdane) has once again failed in its attempt to initiate a referendum aimed at preserving the Bulgarian lev. The proposal for a national poll asking, "Do you agree that the Bulgarian lev should be the only official currency in Bulgaria until 2043?" was rejected.

Two of the candidates from the president's "home list" have agreed to serve as the next acting Prime Minister. This follows meetings with President Rumen Radev, who is still deliberating on the final decision. The two individuals are current acting Prime Minister Dimitar Glavchev and Petar Chobanov, the Deputy Governor of the Bulgarian National Bank (BNB).

The Bulgarian Parliament has approved the Law on the introduction of the euro, which outlines the procedures for rounding prices following the currency switch. This legislation is designed to manage the transition from the leva to the euro once Bulgaria joins the Eurozone, detailing how prices will be displayed in both currencies for a month.

Political instability is hindering Bulgaria's progress toward joining the Eurozone, according to an analysis by the rating agency Scope Ratings. The Berlin-based agency has maintained Bulgaria's credit rating at BBB+ with a positive outlook in both local and foreign currency.

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.