Common currency: EU Commission approves introduction of the euro in Bulgaria

The European Commission believes Bulgaria can adopt the euro, the common currency. The EU member state meets the necessary criteria, the Brussels-based authority announced. Bulgaria plans to replace its national currency, the lev, with the euro on January 1, 2026.

Thanks to the euro, the Bulgarian economy will become stronger, according to EU Commission President Ursula von der Leyen. Bulgaria is currently one of the poorer EU countries. According to preliminary data from Eurostat, per capita economic output was 34 percent below the EU average last year.

The Balkan country has been a member of the European Union since 2007 and would be the 21st country to adopt the common currency. Croatia was the last country to join the eurozone, on January 1, 2023. Bulgaria's introduction of the euro was originally planned for early 2024. Accession was postponed, among other things, due to the comparatively high inflation rate of 9.5 percent at the time. From the EU Commission's perspective, the price stability criterion was not met.

Before adopting the euro, countries must also demonstrate sound public finances and stable exchange rates, and their national debt must be under control. The progress of euro accession candidates in meeting these so-called convergence criteria is regularly reviewed by the European Central Bank (ECB) and the European Commission. The ECB also considers Bulgaria fit for the euro. The country has made good progress in key economic indicators since 2024.

In Bulgaria, the debate surrounding the introduction of the euro is being accompanied by violent protests. Just last Saturday, supporters of pro-Russian and nationalist parties demonstrated in the capital Sofia and other cities. They are demanding that the national currency, the lev, be retained, as they fear the euro will drive up prices. Polls show that Bulgaria's population is divided on the euro issue. According to an opinion poll conducted by the Bulgarian Institute Mjara in mid-May, more than half of adults oppose the introduction of the euro in 2026. Just over a third support joining the eurozone next year.

At the same time, the European Commission decided to initiate criminal proceedings against Austria for excessive new debt. The Brussels-based authority responsible for compliance with EU debt rules announced that the country has an excessive deficit. The aim of the excessive deficit procedure is to encourage countries to adopt sound fiscal management.

Last year, Austria's government deficit amounted to 4.7 percent of economic output – well above the EU's three percent ceiling. At the same time, the country is mired in an economic crisis with high inflation, weak consumer demand, and a persistent recession. According to a forecast by the EU Commission, Austria is the only EU member whose economy will shrink this year. The current government aims to reduce government spending by a total of €54 billion by 2029.