Bulgaria bullish about positive report on its bid to join the eurozone

By Rosemarie Zamora

The Bulgarian government is expecting a positive outcome regarding its accession to the eurozone as it awaits the European Commission’s ruling on the country’s request for an ad hoc convergence report on June 4.

The upcoming EC’s convergence report assesses whether Bulgaria meets the criteria to adopt the euro.

What’s in it for Bulgaria?

Once Bulgaria has officially become a member of the eurozone, it now has the right to use euro notes and coins. Bulgaria will also secure a seat on the European Central Bank’s rate-setting Governing Council.

In a speech in July 2024 by Bulgarian National Bank Deputy Governor Petar Chobanov, he described Bulgaria’s integration into the euro area as “undoubtedly a crucial event” in the country’s history. He said once it enters the euro area, Sofia’s role and responsibilities in the European Union will increase.

It will also open wider opportunities for the country’s further development and growth.

Bulgaria’s entry into the eurozone could help the country to have fewer risks for investments, fewer expenses related to exchange rates, and more ease of doing business with economic partners in the Eurozone.

YOU MAY ALSO LIKE: PKK dissolution: What does it mean for Turkey and the Middle East?

Sofia meets all the criteria

Officials and experts are confident that the EC will give the go-ahead for Bulgaria to adopt the euro currency as BNB governor Dimitar Radev said that the country has been consistently meeting the euro convergence criteria.

Under the inflation criterion, a euro candidate cannot have consumer inflation higher than 1.5 percentage points. In April, Bulgaria reached 2.8 percent inflation, just within the limit.

The country also has a budget deficit of 3.0 percent in 2024 and is expected to have a 2.8 percent deficit this year. In addition, the country’s public debt of 24.1 percent of gross domestic product (GDP) in 2024 and 25.1 percent expected this year is well below the maximum level of 60 percent.

Bulgaria also has a currency board that fixes its currency, the lev, to the euro at 1.95583.

If the EC gives the green light for Bulgaria to adopt the euro currency, Sofia will be able to use it by January 2026.

READ NEXT: Australia swings left as Anthony Albanese stages PM comeback win