Reference:

• EU finance ministers have granted final approval to Bulgaria to adopt the euro currency.

Key Points:

• Bulgaria will adopt the euro as its official currency from 1 January 2026.
• It will become the 21st member to join the Eurozone.
• Eurozone refers to the group of EU countries that have adopted the euro (€) as their official currency and are subject to the European Central Bank (ECB)’s monetary policy.
• Currently, the Eurozone has 20 member countries: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain.
• Conditions to adopt the euro are determined by the Maastricht Criteria.
• Management of the euro is done by the European Central Bank (ECB).
• Countries like the United Kingdom, Denmark, and Sweden have not adopted the euro.

Background and Process:

• Bulgaria joined the European Union in 2007, but needed to fulfill the Maastricht Criteria—which include inflation, budget deficit, public debt, currency stability, and long-term interest rates—to adopt the euro.
• Bulgaria entered the Exchange Rate Mechanism II (ERM II) in 2020, a prerequisite for euro adoption.
• The European Commission and ECB assessed Bulgaria’s economy and gave a positive report in 2025.

Bulgaria's Compliance with Maastricht Criteria:

• Inflation control: 12-month average at 2.7%, below the 2.8% limit.
• Budget deficit: Under 3% of GDP.
• Public debt: Below 60% of GDP.
• Long-term interest rates: Within EU limits.
• Currency stability (ERM II): Successful participation in ERM II since 2020, with stable exchange rate.
• Exchange rate: Fixed at 1.95583 BGN to 1 EUR.

Impacts and Significance:

• Economic stability: Euro adoption will boost investor confidence and attract foreign investment.
• Trade and Tourism: Easier transactions with other Eurozone countries—no currency conversion needed.
• Interest and inflation: Bulgaria will benefit from Eurozone monetary policy, aiding control.
• Political and social integration: Strengthens EU integration—especially as full Schengen membership follows within six months.

About Bulgaria:

• Location: Southeastern Europe, Balkan Peninsula
• Capital: Sofia
• Neighbors: Romania, Serbia, North Macedonia, Greece, Turkey
• Official Language: Bulgarian
• Current Currency: Bulgarian Lev (BGN)
• Constitution: Adopted 1991
• NATO Membership: Since 2004
• Continent: Europe
• Major River: Danube
• Religion: Predominantly Eastern Orthodox Christianity
• Geography: Balkan Mountains, Black Sea coast
• Famous Sites: Nessebar, Rila Monastery, Varna, Plovdiv

European Union (EU):

• Founded: 1 November 1993 (Treaty of Maastricht)
• Headquarters: Brussels, Belgium
• Member States: 27 countries
• Currency: Euro (€)—official in 20 countries
• Founding Members: France, Germany, Italy, Belgium, Netherlands, Luxembourg
• Institutions:

• • European Commission: Policy-making and execution
  • European Council: Heads of member states
  • European Parliament: Democratic representation
  • European Court of Justice: Legal interpretation and enforcement
  • European Central Bank (ECB): Manages the euro currency