Bulgaria to Join Eurozone as 21st Member

On 8 July 2025, EU finance ministers approved Bulgaria’s adoption of the euro from 1 January 2026. This will make Bulgaria the 21st country to join the eurozone. The fixed exchange rate is set at 1.95583 lev per euro. Bulgaria’s entry marks a major milestone nearly two decades after joining the European Union.

Transition from Lev to Euro

Bulgaria will officially replace its national currency, the lev, with the euro. The government aims for a smooth transition to protect citizens’ interests. Prime Minister Rossen Jeliazkov called it a landmark moment and thanked all partners involved. The change is expected to integrate Bulgaria more deeply into the EU’s economic framework.

Economic and Political Background

Bulgaria’s euro adoption was delayed by high inflation and political instability. The country faced seven elections in three years, the last in October 2024. Despite meeting the Maastricht criteria recently, public opinion remains divided. Concerns about price rises and purchasing power have sparked protests in Sofia. Some political leaders proposed a referendum, but parliament rejected it.

Support from EU Leaders

EU officials welcomed Bulgaria warmly. European Commission President Ursula von der Leyen brought into light the euro’s benefits for people and businesses. European Central Bank President Christine Lagarde said Bulgaria’s economy would strengthen. EU Economy Commissioner Valdis Dombrovskis called it a step towards a prosperous future in Europe’s heart.

Strategic Importance of Joining

Joining the eurozone is seen as a way to boost economic stability and reinforce Bulgaria’s Western ties. It also offers protection against external pressures, including Russian influence. Supporters argue that euro adoption will enhance investment, trade, and political credibility.

Eurozone Enlargement History

The eurozone began with 12 countries in 2002. It expanded gradually – Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), Lithuania (2015), and Croatia (2023). Bulgaria’s accession will bring the total to 21 members.

Criteria for Euro Adoption

EU countries must meet strict rules known as the Maastricht criteria. These include low inflation, sound public finances, stable exchange rates, and controlled long-term interest rates. Inflation must not exceed by more than 1.5 percentage points the average of the three best-performing EU countries. Bulgaria recently fulfilled these conditions, enabling its euro entry.

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