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.
Bulgarian President Rumen Radev and Japanese Prime Minister Shigeru Ishiba signed a declaration on upgrading bilateral ties to a strategic partnership during Radev’s official visit to Tokyo.
On the sidelines of the Istanbul Natural Resources Summit, Azerbaijan’s Minister of Energy, Parviz Shahbazov, held bilateral meetings with Bulgarian Energy Minister Zhecho Stankov and Romanian Energy Minister Sebastian-Ioan Burduja.
TF FEST 2025 opened Thursday in Plovdiv, Bulgaria, bringing together 116 student-run training companies from Bulgaria, Serbia, and Montenegro to showcase skills, compete, and connect with real businesses in a dynamic, interactive environment.
Bulgaria is stepping up preparations to host the Ninth Global Conference on Wine Tourism this autumn in Plovdiv, with Minister of Tourism Miroslav Borshosh leading a series of high-level meetings to finalize venues and partnerships.
Bulgaria has seen a sharp rise in diseases transmitted by ticks and mosquitoes, including Lyme disease and West Nile fever, with health authorities warning of an urgent need for stricter pest control measures.
Wall Street futures slipped as a surprise court ruling brought back most of Trump-era tariffs, shaking investor confidence heading into month-end.
As public health concerns over tobacco use persist, countries across Europe are tightening regulations on smoking, particularly in public spaces. France’s announcement of a new outdoor smoking ban highlights a growing continental trend toward stricter anti-smoking measures.
Political dialogue between Azerbaijan and Croatia creates a strong foundation for expanding cooperation in various fields.
Less than 24 hours after formally accepting a U.S.-backed ceasefire proposal for Gaza, Hamas now says it is still “reviewing” the plan, raising uncertainty over the implementation of a truce aimed at halting months of devastating conflict.
Ukraine on Friday withheld its confirmation of participation in the next round of peace talks with Russia, scheduled for June 2 in Istanbul, stating it first requires a detailed proposal from Moscow outlining its conditions for a potential truce or peace deal.
AnewZ takes to the streets of Yerevan and Baku to ask a simple yet deeply complex question: How do you see peace between Armenia and Azerbaijan? In the first part of our special report, we hear the hopes, doubts, and scars still shaping people’s perspectives on both sides.
On May 28, the inauguration ceremony of Lachin International Airport was held.
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
Kyiv faced a large-scale Russian drone and missile assault overnight, with explosions and gunfire echoing throughout the city, forcing residents to shelter in subway stations.
Wall Street futures slipped as a surprise court ruling brought back most of Trump-era tariffs, shaking investor confidence heading into month-end.
Model Hailey Bieber is selling her skincare brand Rhode to e.l.f. Beauty in a deal worth up to $1 billion (£790 million), with plans for international expansion and continued viral success.
The European Bank for Reconstruction and Development (EBRD) is providing a €25 million loan to Ofis Yem, a leading livestock feed producer in Türkiye, to support the company’s transition toward a green economy and the implementation of inclusive business practices.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has invested $50 million in ADNOC Gas Pipeline Assets LLC (AGPA), a subsidiary of the Abu Dhabi National Oil Company (ADNOC), which manages the gas pipeline network in the United Arab Emirates.
Ford Motor Company is recalling more than 1 million vehicles across multiple models due to a software glitch that could cause the rearview camera to malfunction, increasing the risk of an accident.
Wall Street futures slipped as a surprise court ruling brought back most of Trump-era tariffs, shaking investor confidence heading into month-end.
As public health concerns over tobacco use persist, countries across Europe are tightening regulations on smoking, particularly in public spaces. France’s announcement of a new outdoor smoking ban highlights a growing continental trend toward stricter anti-smoking measures.
Political dialogue between Azerbaijan and Croatia creates a strong foundation for expanding cooperation in various fields.
Less than 24 hours after formally accepting a U.S.-backed ceasefire proposal for Gaza, Hamas now says it is still “reviewing” the plan, raising uncertainty over the implementation of a truce aimed at halting months of devastating conflict.
Ukraine on Friday withheld its confirmation of participation in the next round of peace talks with Russia, scheduled for June 2 in Istanbul, stating it first requires a detailed proposal from Moscow outlining its conditions for a potential truce or peace deal.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment