On Wednesday, the 4th of June, the European Commission (EC) and the European Central Bank (ECB) gave Bulgaria the green light to adopt the euro at the beginning of 2026, making Bulgaria the 21st country to join the single currency area, according to Reuters.

In its convergence report, the EC described Bulgaria’s economy as compatible with that of the eurozone and noted that Bulgaria had met the formal criteria for adopting the currency.

The euro is currently used by 347 million Europeans in 20 countries.

“Today, the European Commission concluded that Bulgaria is ready to adopt the euro on the 1st of January 2026 – a significant milestone that will make Bulgaria the 21st Member State to join the eurozone,” the Commission said in a statement.

The Commission also examined how closely Bulgaria’s economy and markets are linked to the rest of the EU and how the country is doing in terms of external payments.

In a separate report, the ECB also stated that Bulgaria is ready for the euro.

“I would like to congratulate Bulgaria on its tremendous determination to take the necessary steps,” said ECB Executive Board member Philip Lane.

Bulgaria has been striving to switch from the lev to the euro since joining the European Union in 2007. However, after such a long wait, many Bulgarians have lost their initial enthusiasm, and according to a Eurobarometer survey conducted in May, 50% of the population is now sceptical about the euro. Some Bulgarians fear that the currency change will lead to price increases.

“Ensuring price transparency and combating abusive price increases will require special efforts,” EU Economic Affairs Commissioner Valdis Dombrovskis said at a press conference. However, based on previous experience in other eurozone countries, he pointed out that price increases during currency changeovers have been small and manageable.

By becoming a member of the eurozone, Bulgaria will also gain a seat on the ECB’s Governing Council, which sets interest rates.

The EU’s positive recommendation means that leaders will approve it at the end of June. In July, finance ministers will set the exchange rate between the lev and the euro, and Bulgaria will spend the rest of the year preparing for the currency changeover.

Bulgaria meets the criteria for adopting the euro

Bulgaria qualified for the introduction of the euro by meeting the main requirements. Its April inflation rate of 2.8% was only slightly above the threshold compared to the three EU countries with the lowest inflation.

Bulgaria’s budget deficit is within the 3% limit – it is projected to be 2.8% in 2025 – and its public debt, at 24.1% of GDP in 2024 and 25.1% in 2025, is well below the 60% threshold.

Long-term interest rates and exchange rate stability also met the standards, supported by a long-standing currency board policy that has pegged the lev to the euro at a fixed rate of 1.95583 since 1999.

After Bulgaria’s accession to the euro area, only six of the 27 EU Member States will remain outside the single currency area: Sweden, Poland, the Czech Republic, Hungary, Romania and Denmark.

None of them have immediate plans to adopt the euro, either for political reasons or because they do not meet the necessary economic criteria.

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“Joining the euro area is the best investment Bulgaria can make in its future,” Commission Vice President Valdis Dombrovskis told reporters on Thursday, saying that membership would help Bulgaria in the same way that it has helped his home country Latvia and the other Baltic states.

“Given the geopolitical situation in the region and Russia’s war against Ukraine, the euro acts as a shield … Our savings are safe, the currency is stable and our countries have proven resilient in the face of consecutive economic shocks.”

He added that “our economies and companies have benefited from the removal of currency conversion costs, increased price transparency, access to cheaper financing and greater interest from international investors.”

The move binds one of the EU’s poorest countries more tightly into the bloc’s institutional structures at a time when Russia is exerting economic, political and even military pressure on its former eastern-bloc neighbors, leading some to flirt with a more Kremlin-friendly foreign policy.

Unsurprisingly, European officials close to the process have told POLITICO that it expects no opposition from other eurozone members in the final decision on the accession, which will be taken during a meeting of EU finance ministers on July 8.

The Balkan country of 6.4 million people committed to join the eurozone in 2007, but has been repeatedly rebuffed after failing to meet a slew of so-called convergence criteria that aim to ensure economic and legal compatibility. Persistently high inflation in the wake of the pandemic and the invasion of Ukraine scuppered its chances of joining the club in 2024 and 2025.

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Bulgaria will join the eurozone at the start of next year after clearing a series of economic hurdles, securing approval from the European Central Bank and the European Commission on Wednesday.

“Today’s report is a historic moment for Bulgaria, the euro area and the European Union,” said EU economy chief Valdis Dombrovskis.

ECB Executive Board Member Philip Lane noted: “I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed.”

Since it joined the EU in 2007, Bulgaria has been seeking to switch its current currency, the lev, to the euro — although persistent inflation and political unrest have stalled progress.

Last year, Bulgaria’s accession to the eurozone was pushed back as the country failed to contain price pressures. These shot up during Europe’s energy crisis following Russia’s invasion of Ukraine, although annual CPI cooled to 3.5% in April, close to the EU’s 3% target.

The ECB and the Commission are now satisfied that economic criteria are fulfilled, notably relating to the public debt and deficit, inflation, interest rates and the exchange rate.

Bulgaria’s accession must now be approved by euro area finance ministers, with the final go-ahead expected on 8 July.

Wednesday’s breakthrough came after a wave of protests in Bulgaria against the adoption of the euro.

Disinformation campaigns from home and abroad have made certain groups fearful of the change, notably pushing narratives that the euro will worsen poverty and stoke inflation.

Bulgarian President Rumen Radev encouraged the anti-euro voices by proposing earlier this month a referendum on the currency. The proposal was rejected by the pro-European majority in parliament, which accused Radev of acting in favour of Moscow with his last-minute attempt to sabotage the euro adoption.

Countries that have previously joined the eurozone have seen modest inflationary spikes.

Even so, eurozone membership also offers a series of benefits as it can reduce borrowing costs, attract foreign investment, and facilitate cross-border trade. A position in the eurozone would also allow Bulgaria to have a greater say over the ECB’s monetary policy trajectory.

Croatia was the last country to join the eurozone in 2023.

The EU gave the green light on Wednesday for Bulgaria to adopt the euro on January 1, 2026, putting the Balkan country on course to become the 21st member of the single currency area.

The European Commission said Bulgaria had fulfilled the strict criteria “intended to ensure that a country is ready to adopt the euro and that its economy is sufficiently prepared to do so”.

The European Central Bank also gave a positive opinion, hailing Bulgaria’s “tremendous dedication to making the adjustments needed”.

Bulgarian Prime Minister Rossen Jeliazkov hailed “a remarkable day” that confirmed the country’s progress.

“Another step forward on Bulgaria’s path to the euro… This follows years of reforms, commitment and alignment with our European partners,” he said in a post on X.

The push has, however, sparked a backlash from many Bulgarians, with protests and recent surveys showing nearly half of those questioned opposed adopting the euro — fearing painful economic consequences.

– ‘No to the euro’ –

About 1,000 people demonstrated on Wednesday in front of the National Assembly building in the centre of Sofia, holding signs that read “Preserve the Bulgarian lev,” “No to the euro,” and “The future belongs to sovereign states.”

The gathering was organised by the opposition pro-Russian Vazrajdane party.

“If Bulgaria joins the eurozone, it will be like boarding the Titanic,” Nikolai Ivanov, a retired senior official, told AFP at another recent protest calling for the country’s currency — the lev — to be maintained.

Bulgaria has had a rocky road to joining the eurozone: the nation has been plagued by political turmoil with seven elections in three years — the last in October 2024.

The approval by the EU’s executive body comes 18 years after Bulgaria joined the bloc.

“Congratulations, Bulgaria!” commission president Ursula von der Leyen said.

“Thanks to the euro, Bulgaria’s economy will become stronger, with more trade with euro area partners, foreign direct investment, access to finance, quality jobs and real incomes,” she said in a statement.

With a population of 6.4 million, Bulgaria is the poorest nation in the bloc but has spent several years preparing its economy to join the eurozone.

Bulgaria still needs the approval of the EU’s finance ministers, who are expected to give their full backing in July, before it formally adopts the euro.

“Today’s report is a historic moment for Bulgaria, the euro area and the European Union,” said EU economy chief Valdis Dombrovskis.

“Of course, the euro is more than a currency. Following on from Bulgaria becoming a full member of the Schengen area earlier this year, it brings Bulgaria ever closer to the heart of Europe,” he added.

Unsuccessful past attempts

When the first euro bank notes and coins were rolled out on January 1, 2002, only 12 countries were part of the single-currency area including France, Germany, Ireland, Italy and Spain.

It gradually grew to 20 with Slovenia joining in 2007, Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014 then Lithuania in 2015.

Croatia was the most recent country to join in 2023.

Bulgaria wanted to adopt the currency sooner but in the past few years Brussels has concluded its inflation was too high to meet the necessary requirements.

To join the single currency area, member states must show that their economy has converged with other eurozone countries and that they have a handle on their finances.

For example, they must demonstrate inflation is not out of control and is no more than 1.5 percentage points above the rate of the three best-performing EU countries.

Last year, Bulgaria fulfilled all the criteria to join except on inflation.

The average inflation rate in Bulgaria during the 12 months to April 2025 was 2.7 percent, just below the reference value.