Bulgaria Set to Adopt Euro in 2026, Expanding Euro Zone

BRUSSELS, Belgium — Bulgaria received approval on Wednesday from the European Commission and the European Central Bank to adopt the euro currency, aiming for a transition to the single currency by January 1, 2026.

The decision marks a significant milestone for Bulgaria, as it becomes the 21st member of the euro zone, potentially aligning its economy more closely with the 347 million people already using the euro in 20 countries. Philip Lane, a member of the ECB Executive Board, praised the positive assessment of convergence, stating, ‘This paves the way for Bulgaria to introduce the euro.’

The European Commission described this assessment as a historic step for Bulgaria. European Commission President Ursula von der Leyen expressed hope that euro adoption would lead to increased investments and trade, fostering greater stability for the Bulgarian populace.

Bulgaria’s pathway to euro adoption faced challenges as it previously struggled with high inflation exceeding the European Union’s convergence criteria. However, Bulgaria’s current harmonized consumer price index stands at 2.8% as of April, falling within acceptable limits.

The report highlighted other crucial economic conditions such as government deficit restrictions, discipline on public debt, and a stable exchange rate. With public debt projected at 24.1% of GDP in 2024 and a budget deficit of 3.0%, Bulgaria meets these economic mandates.

Bulgaria joined the EU in 2007 and has committed to transitioning to the euro since then. While some citizens are optimistic about the transition, many remain skeptical. A recent Eurobarometer poll indicated 50% of Bulgarians oppose euro adoption, fearing a rise in living costs.

The road to the euro has not been smooth. Following the country’s admission into the European Exchange Rate Mechanism in 2020, years of political instability marked by frequent elections added complexity to the adoption process. Notably, political support for euro adoption remains divided, with various parties expressing opposing views.

Despite public reluctance, Bulgaria is poised for this financial transition. Experts predict that the euro’s introduction could enhance the country’s economic prospects.

As preparations proceed, EU finance ministers are expected to finalize the conversion exchange rate for the Bulgarian lev into euros this July, setting the stage for the anticipated transition in 2026.