Bulgaria is set to become the 21st member of the eurozone, after receiving formal approval from both the European Commission and the European Central Bank to adopt the single currency on 1 January 2026.
Wednesday’s announcement marks a major milestone for the Balkan nation, which has aspired to join the euro area since entering the European Union in 2007. European Commission President Ursula von der Leyen hailed the move as a “historic step,” saying it would boost investment, trade, and economic stability for Bulgaria.
“Thanks to the euro, Bulgaria’s economy will become stronger, with more trade with euro area partners, foreign direct investment, access to finance, quality jobs and real incomes,” she said.
Economic criteria finally met
Bulgaria’s euro ambitions had previously been delayed due to persistently high inflation, exacerbated by the post-pandemic recovery and Russia’s invasion of Ukraine. However, the country’s average inflation over the 12 months to April 2025 was 2.7%—comfortably below the EU’s reference value of 3.3%.
In addition to price stability, Bulgaria met other eurozone accession criteria, including:
- Public debt under 60% of GDP (Bulgaria’s is ~24%)
- Low long-term interest rates
- Stable exchange rate (the lev has been pegged to the euro since 1997)
- Legal compatibility, including central bank independence
“I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed,” said ECB Executive Board Member Philip Lane.
The final decision will be made by EU finance ministers on 8 July, but no opposition is expected. The transition will require prices to be displayed in both lev and euro for a period, with the lev formally phased out in early 2026.
A symbolic shift amid regional tensions
Bulgaria’s accession comes at a time of geopolitical flux, with EU officials describing the euro as a “shield” for smaller economies amid rising external pressures.
“Given the geopolitical situation and Russia’s war against Ukraine, the euro acts as a shield,” said Commission Vice President Valdis Dombrovskis, noting the benefits of reduced conversion costs, stable currency access, and investor confidence.
Bulgaria, the EU’s poorest member state by GDP per capita, has a population of 6.4 million and has been under a currency board regime since 1997. The fixed exchange rate—1.95583 leva per euro—will remain in place until the official switchover.
Domestic division and political turbulence
Despite the endorsement from Brussels, the euro move has been politically contentious at home. While Prime Minister Rossen Jeliazkov welcomed the decision as a validation of Bulgaria’s reform path, opposition voices—including nationalist and pro-Russian parties—have strongly objected.
“A remarkable day. Another step forward on Bulgaria’s path to the euro,” Jeliazkov said, noting that it followed “years of reforms, commitment and alignment.”
But nationalist parties like Revival and Greatness and Unity have led protests in Sofia and other cities, claiming the transition threatens Bulgaria’s economic autonomy and sovereignty. Some demonstrators have likened eurozone entry to “boarding the Titanic.”
Public opinion is split. An EU survey last year found just 49% of Bulgarians supported the euro, while a more recent poll by Myara showed 63.3% in favour, 35.3% against, and about 10% undecided.
President Rumen Radev proposed a referendum on the issue earlier this year, but parliament blocked the move. A previous referendum effort was ruled unconstitutional in 2023.
Implementation timeline and remaining hurdles
While the convergence criteria have been met, EU officials warned that Bulgaria still faces structural challenges. These include:
- Rule-of-law concerns, particularly on high-level corruption
- An underdeveloped capital market
- Skills shortages and educational deficiencies
- Continued money-laundering oversight under the FATF “grey list”
“Further progress is needed to address the outstanding shortcomings in the area of anti-money laundering and countering the financing of terrorism,” the ECB noted, although these issues do not formally block euro accession.
Assuming formal approval in July, Bulgaria will spend the rest of 2025 preparing for the currency transition. From 1 January 2026, the euro will officially replace the lev, and the country will gain a seat at the European Central Bank table—helping shape monetary policy for the entire eurozone.
Croatia was the last country to join the euro area, adopting the currency in January 2023.
