Bulgaria is expected to adopt the euro at the beginning of 2026, rather than mid-next year, as previously forecast. 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. Following this, new convergence reports must be requested from Brussels and Frankfurt to secure a date for entering the Eurozone.
Petkova explained that once Bulgaria met the inflation criterion, time was required for the European Commission and European Central Bank to prepare the convergence reports. This is followed by a draft decision from the Council and unanimous approval from euro area member states. For instance, if the report is ready by March or April, the remaining two or three months until July 1 are insufficient to prepare the country for a smooth transition to the euro.
Currently, Bulgaria does not meet the inflation criterion for eurozone entry, with an annual average inflation rate of 5.1%. Despite reductions from 13% in 2022 and 8.6% last year, the decrease is still not enough. The reference value stands at 3.3%, calculated by averaging the lowest rates from Denmark, Belgium and the Netherlands, then adding 1.5%.
Both the caretaker government and the European Central Bank anticipate Bulgaria will meet this criterion until year-end. Upon achieving this, Bulgaria will request an extraordinary convergence report. Acting Prime Minister Dimitar Glavchev confirmed at the Council of Ministers meeting that Bulgaria was expected to meet all criteria, including price stability, until the end of the year, after which they would request the necessary reports to demonstrate readiness for Eurozone entry.
At the same meeting, the Council of Ministers adopted the draft law on euro adoption in Bulgaria. Petkova highlighted the importance of consumer protection, ensuring accurate revaluation and preventing artificial price increases, which was crucial for consumers.
The interim government also noted that they delayed the adoption of the Euro Law intentionally. If the previous National Assembly had not adopted it, it would have had to wait another six months to be reintroduced, per parliamentary rules. (Novinite)