Bulgaria ready to adopt the euro from 2026, according to reports from the EC and ECB

Today, the European Commission (EC) and the European Central Bank (ECB) published extraordinary convergence reports, presenting their assessment of Bulgaria's progress towards the euro area. The convergence reports were published after the Minister of Finance Temelina Petkova and the Governor of the Bulgarian National Bank Dimitar Radev signed a joint letter to the President of the European Commission Ursula von der Leyen and the President of the European Central Bank Christine Lagarde on 25 February, requesting their preparation.

The reports find that Bulgaria fulfills the four nominal membership criteria: for public finance stability, for long-term interest rates, for price stability, and for exchange rate. Regarding the exchange rate criterion, the Bulgarian lev has participated in the Exchange Rate Mechanism II (ERM II) of the European Monetary System since 10 July 2020, with the country maintaining the existing currency board as a unilateral commitment at an official exchange rate of 1.95583 levs to the euro.

The reports also note that the Law on the Bulgarian National Bank is compatible with the relevant provisions of the Treaty on the Functioning of the EU and the Statute of the European Central Bank/European System of Central Banks.

Following the publication of the convergence reports, on 19-20 June the finance ministers in the Eurogroup and the EU Council for Economic and Financial Affairs are expected to discuss them and approve a recommendation from the euro area Member States to the EU Council on Bulgaria's adoption of the euro. On 26-27 June, the EU leaders in the European Council format are also expected to discuss the convergence reports and the draft decision on Bulgaria's adoption of the euro. On 8 July, the European Parliament is expected to approve an opinion on the draft, and on the same day the ministers in the EU Council for Economic and Financial Affairs are expected to approve the legally binding acts related to Bulgaria's accession to the euro area as of 1 January 2026.