Bulgaria makes strides towards Eurozone integration

The European Commission (EC) has confirmed that Bulgaria has met the necessary criteria to begin using the euro.

This announcement marks a historic milestone in Bulgaria’s integration journey, opening the door for the country to become the 21st member of the Eurozone by 2026, while also strengthening the euro’s position in the international monetary system.

Headquarters of the European Commission in Brussels, Belgium.

Joining the Eurozone has been a challenging path for Bulgaria. To become a Eurozone member, European Union (EU) countries must meet strict requirements regarding public finances, long-term interest rates, inflation, and exchange rate stability. Since joining the EU in 2007, Bulgaria has worked to transition from its national currency, the lev, to the euro. However, this process has faced repeated setbacks due to persistent inflation and prolonged political instability.

Despite these difficulties, Bulgaria has persisted in aligning its economy with the stringent conditions, and the Southeast European nation can now reap the rewards as the EC has officially given the green light for its Eurozone entry. According to the EC and the European Central Bank (ECB), Sofia has met all the necessary benchmarks.

Notably, Bulgaria’s inflation rate over the past 12 months has dropped to 2.7%, below the 2.8% reference value. Prime Minister Rossen Jeliazkov stated that the EC’s positive assessment reflects progress in the country’s reform efforts. If subsequent approval steps proceed smoothly, Bulgaria is expected to join the Eurozone on January 1, 2026, following years of anticipation.

Sofia’s determination to join the Eurozone is no coincidence. Emphasising that the euro symbolises European strength and unity, EC President Ursula von der Leyen expressed confidence that the single currency will serve as a vital tool to support Bulgaria’s economy. Currently, about 341 million citizens across 20 of the EU’s 27 member states use the euro. It is also a relatively stable currency, increasingly trusted by central banks worldwide for reserves.

Thus, joining the Eurozone will facilitate cross-border trade, increase price transparency, reduce currency exchange costs, attract foreign investment, and boost tourism by welcoming more European visitors. Furthermore, Eurozone membership grants Sofia access to ECB financial support and a voice in shaping the bloc’s monetary policy.

These advantages are particularly vital for Bulgaria’s economy. With a population of around 6.4 million, Bulgaria is currently considered the poorest EU country, with low average wages and high poverty rates. Like many EU members, Sofia also faces pressure from global trade fluctuations.

Bulgaria’s accession also carries significance for the Eurozone itself. The bloc has experienced sluggish growth in recent years and faces mounting trade tensions with the US, which could have unpredictable consequences for the region’s economy. In this context, welcoming Bulgaria serves as a clear sign that the euro remains an attractive and vital currency in the region’s development.

Moreover, with existing divisions among EU countries on trade, foreign policy, and defence issues, this expansion may help restore trust among member states and reinforce EU and Eurozone unity.

Joining the Eurozone is only the first step. Bulgaria still has much work ahead. According to EU Commissioner for the Economy Valdis Dombrovskis, the country must take decisive and sustained action to enhance economic competitiveness and ensure compliance with rules on public debt and budget deficits. Though challenges remain, the door is now open for Bulgaria to advance on its integration path and foster its sustainable economic growth.

NDO