Brussels: European Union leaders approved Bulgaria's entry into the eurozone starting January 1, 2026, making it the 21st member to adopt the single currency. The decision was made at the EU summit in Brussels, following a positive assessment from the European Commission of Bulgaria's economic performance.
According to Bahrain News Agency, Bulgaria, which joined the EU in 2007, will be the second country to adopt the euro within three years, following Croatia in 2023. The move comes despite delays to Bulgaria's original 2024 target due to a high inflation rate, which had reached 9.5% at the time.
Bulgaria has recently stabilised its convergence criteria, with inflation expected to drop to 3.6% this year and 1.8% in 2026. The country has also met requirements for price stability, public finances, and exchange rate alignment.
The euro adoption is expected to bring significant economic benefits for Bulgaria, including easier trade, investment, and tourism, as well as eliminating currency conversion and exchange fees. The decision still requires final approval from the European Parliament and the European Central Bank, though these steps are largely procedural.
All EU member states, except Denmark, are committed to joining the euro once they meet the required criteria, although Bulgaria remains one of the EU's poorest countries in terms of GDP per capita.