The European Commission is likely to give Bulgaria the green light on June 4 to adopt the euro currency from the start of 2026, several euro zone officials said, making Bulgaria the 21st country to join the single currency area.
The Commission will publish a "convergence report" next Wednesday on whether Bulgaria meets the criteria to adopt the euro, now used by 347 million Europeans in 20 countries.
Three senior euro zone officials said they expected the Commission report to be positive for Bulgaria, which has been striving to switch its lev currency to the euro ever since it joined the European Union in 2007.
Becoming a member of the euro zone, apart from using euro notes and coins, also means a seat at the European Central Bank's rate-setting Governing Council. The ECB will issue its own assessment on June 4 whether it thinks the country is ready, and if its central bank is independent.
It is the Commission's view that is decisive, however.
A positive recommendation from the EU executive arm would mean that EU finance ministers would endorse it and fix the conversion exchange rate for the Bulgarian lev into the euro in July, leaving the rest of the year for the country to technically prepare for the transition.
MEETING THE CRITERIA
For a positive recommendation, Bulgaria has to meet the inflation criterion, which says that the euro-candidate cannot have consumer inflation higher than 1.5 percentage points above the three best EU performers.
In April, the best performers were France with 0.9%, Cyprus with 1.4% and Denmark with 1.5%, which put Bulgaria with its 2.8% just within the limit.
The euro candidate country also cannot be under the EU's disciplinary budget procedure for running a deficit in excess of 3% of GDP. Bulgaria meets this criterion with a budget deficit of 3.0% in 2024 and 2.8% expected in 2025.
The country's public debt of 24.1% of GDP in 2024 and 25.1% expected in 2025 is well below the maximum level of 60%, and its long-term interest rate on bonds is well within the 2 percentage point margin above the rate at which the three best inflation performers borrow.
Finally, the euro candidate country has to prove it has a stable exchange rate by staying within a 15% margin on either side of a central parity rate in the Exchange Rate Mechanism II.
Bulgaria has been running a currency board that fixed the lev to the euro at 1.95583 since the start of the euro currency in 1999.
Bulgaria's euro adoption will come three years after the last euro zone expansion, when Croatia joined the single currency grouping at the start of 2023.
The Commission will also look at whether Bulgaria's economy and markets are integrated with the rest of the EU, as well as the trends in the country's balance of payments.
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Bulgaria’s Black Sea ports of Varna and Burgas could soon be linked to the Trans-Caspian International Transport Route, following high-level talks between the presidents of Bulgaria and Kazakhstan.
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International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi has strongly rejected allegations that the IAEA Board of Governors’ June 12 report provided Israel with justification to attack Iran. Grossi emphasized that the agency’s role and reports can never be used to legitimize
Denmark announced it will continue backing Ukraine’s bid for European Union membership despite Hungary’s ongoing blockade, as it prepares to assume the presidency of the European Council on July 1.
Maria Zakharova, spokesperson for the Russian Foreign Ministry, urged the Israeli government to immediately stop its attacks on Iran’s nuclear sites during a press conference at the St. Petersburg International Economic Forum (SPIEF).
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
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European stock markets ended the day in negative territory following interest rate decisions by major central banks, including the U.S. Federal Reserve (Fed) and the Bank of England (BoE).
South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
The European Bank for Reconstruction and Development (EBRD) has launched its Youth in Business programme in Türkiye, building on its success in 12 other countries. The initiative aims to mobilise up to €250 million in financing to support young entrepreneurs under 35.
KazMunayGas (KMG) and China’s Sinopec have reached an agreement on the terms for jointly implementing the Berezovski subsoil use project in Kazakhstan’s West Kazakhstan region. The signed documents outline joint activities and formalize the strategic partnership between the two companies.
The Ministry of Foreign Affairs of the Republic of Azerbaijan (MFA), along with our embassy in the Islamic Republic of Iran and the consulate general in Tabriz, continues the process of evacuating Azerbaijani citizens and foreigners from Iranian territory.
International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi has strongly rejected allegations that the IAEA Board of Governors’ June 12 report provided Israel with justification to attack Iran. Grossi emphasized that the agency’s role and reports can never be used to legitimize
Denmark announced it will continue backing Ukraine’s bid for European Union membership despite Hungary’s ongoing blockade, as it prepares to assume the presidency of the European Council on July 1.
Maria Zakharova, spokesperson for the Russian Foreign Ministry, urged the Israeli government to immediately stop its attacks on Iran’s nuclear sites during a press conference at the St. Petersburg International Economic Forum (SPIEF).
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