Finance ministers confirm Bulgaria meets all criteria
Euro zone finance ministers have formally recommended that Bulgaria adopt the euro on January 1, 2026, making it the 21st member of the single currency bloc. The endorsement follows positive assessments from both the European Commission and the European Central Bank.
“The Eurogroup agreed today that Bulgaria fulfils all the necessary conditions to adopt the euro,” said Paschal Donohoe, president of the Eurogroup, during a press conference on Thursday. The final approval will come from all 27 EU finance ministers on Friday, with EU leaders expected to endorse it on June 26.
Lev-to-euro exchange rate to be confirmed in July
The exact exchange rate for converting the Bulgarian lev to the euro will be set in early July. This will give Bulgaria a six-month transition period to implement technical and institutional changes ahead of the currency switch in January.
Bulgaria has pursued euro adoption since it joined the EU in 2007. However, recent sentiment among citizens is mixed. A May Eurobarometer poll found that 50% of Bulgarians are skeptical about joining the euro, mainly due to concerns over potential price increases.
Inflation and budget targets narrowly met
To qualify, Bulgaria had to meet strict euro adoption criteria. Inflation could not exceed 1.5 percentage points above the EU’s three lowest inflation countries. In April, Bulgaria’s 2.8% rate just made the cut.
The country also met budgetary and debt thresholds, with a 3% deficit in 2024 and 2.8% projected for 2025. Public debt remains low, forecast at 24.1% of GDP this year and 25.1% in 2025—well below the 60% ceiling.
Bulgaria also demonstrated currency stability, maintaining a fixed exchange rate of 1.95583 lev per euro through a currency board in place since 1999.
Euro zone expansion continues, six EU states remain outside
Bulgaria’s entry will be the first since Croatia adopted the euro in 2023. Once Bulgaria joins, only six EU countries will remain outside the euro area: Sweden, Poland, Czech Republic, Hungary, Romania and Denmark. None have immediate plans to switch, citing political or economic barriers.
