Bulgaria Set to Join Eurozone by 2026

Bulgaria has satisfied all the requirements to adopt the euro currency from January 1, 2026, as confirmed by the European Central Bank. This announcement follows the assessment of various indicators including inflation and central bank legislation. "This positive assessment of convergence paves the way for Bulgaria to join the euro area," stated ECB chief economist Philip Lane.

The final decision awaits the nod from EU finance ministers, expected to be finalized in early July. Once the political formalities are done, Bulgarian central bank officials will be invited to partake in ECB meetings, such as the rate-setting Governing Council, as observers, preceding formal accession.

For years, Bulgaria has aimed to join the common currency but encountered delays due to not meeting some key criteria, especially in inflation. This year, Bulgaria met the inflation criterion as its 12-month reading was 2.7% in April, slightly under the 2.8% threshold.

Though inflation is anticipated to rise in 2025, averaging 3.6%, the European Commission forecasts it will fall below 2% in 2026, aligning with EU norms.

(With inputs from agencies.)