Bulgaria and the euro

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.

The Bulgarian Parliament has recently adopted a decision to accelerate the process of adopting the euro. Under this new directive, the Ministry of Finance is tasked with requesting Bulgaria's Eurozone membership to commence on July 1, 2025, provided the country meets the inflation criteria by the end of this year.

Bulgarian MPs have called for the accelerated adoption of the euro, but the finance minister explained that this was not feasible. The Committee on Budget and Finance voted on a decision urging the caretaker government to expedite the practical preparations for the euro's adoption in Bulgaria. This draft decision was submitted by Boyko Borissov and several representatives from GERB.

Bulgaria is not prepared to introduce the euro on January 1, 2025, as it fails to meet one of the four criteria for eurozone entry—the inflation level. This was highlighted in a report by the European Commission, adopted on Wednesday.

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.

The European Central Bank (ECB) is expected to inform Bulgaria today that the country is not ready to join the Eurozone at the beginning of 2025, according to Politico. At noon, the European Commission will release reports on the convergence of EU member states planning to adopt the single currency.

Bulgaria celebrates 144 years since the creation of the Bulgarian lev. June and July are significant months in the country's monetary and financial history, marking the inception of several key institutions still influential today.

Vice President Iliana Yotova emphasized Bulgaria's imperative to maintain momentum towards joining the Eurozone during a forum dedicated to the country's Eurozone accession prospects.