While analyzing the published convergence reports of the EC and of the ECB on 4th June 2025, UBB experts comment on the results.

The regular government, voted in on 16th January 2025, submitted a request for preparation of extraordinary convergence reports to the EC and the ECB. Main conclusion: „Within the context of their assessment of the legal compatibility and of the fulfillment of the convergence criteria and while taking into account the additional important factors, the Commission believes that Bulgaria complies with the conditions for euro adoption.”

This positive assessment for convergence purposes paves the way for Bulgaria to adopt the euro currency as of 1st January 2026. Thus, it will become the 21st EU member state to join the Eurozone,” said Philip R. Lane, member of the ECB Executive Board. “I want to congratulate Bulgaria for its tremendous dedication to make the required reforms.”

Until the practical adoption of the euro the forthcoming steps are the following:

· 19th June: Meeting of the Eurogroup states in Luxembourg. After discussing the reports, a draft recommendation to the EU Council will be adopted, concerning Bulgaria’s accession to the Eurozone.

· 20th June: A meeting in Luxembourg of the representatives of the 27 member states on economic and financial affairs (ECOFIN) – the recommendation, made on the previous day will be approved.

· 26th June: A leadership summit in Brussels – the reports and the EC accession proposal as of 1st January 2026 will be discussed.

· 8th July: Final approval by representatives of the 27 member states on financial affairs (ECOFIN). On that same day a resolution will be put to the vote at a plenary session of the European Parliament. A simple majority is needed for that.

„The direct benefit for businesses from joining the eurozone will be the saving of substantial transaction costs, including currency conversion fees, fees for maintaining bank accounts in different currencies, administrative costs and others. This is also valid for individuals, travelling in the Eurozone, and for foreign nationals, visiting Bulgaria“, clarified the Chief Economist of UBB, Emil Kalchev, PhD.

Other important effects will be elimination of country risk and the anticipated increase of Bulgaria’s credit and investment rating. Ultimately, both this country and its businesses will be able to obtain funding at a cheaper price, and the economy expects an influx of even more foreign direct investment: hence, more jobs, increase in income and accelerated economic growth.

„Croatia, being the fastest growing economy in the EU after Malta over the last two years, as compared to its position before adopting the euro, underwent a similar development“, additionally stated Kalchev.

Expectations are for further enhancement of the fiscal discipline in Bulgaria, higher resilience upon economic crises and stabilization of the inflation by means of a closer connection with the economic cycle in the EU.

The Monetary Union membership also brings about additional benefits in both political and reputational aspect. Bulgaria is going to be involved in a more fully-fledged manner in the EU strategic decision-making processes. Expectations are for faster institutional convergence and enhanced quality of operation of Bulgarian institutions.