Bulgaria has made good progress for financial convergence with the euro area since 2024, according to the European Central Bank (ECB) convergence report published today.
“This positive assessment of the convergence paves the way for Bulgaria to introduce the euro on January 1, 2026 and become the 21st EU Member State to participate in the euro area,” said Philip R. Lane, a member of the ECB Executive Council. “I would like to congratulate Bulgaria on its enormous dedication to the realization of the required adjustments.”
According to the ECB’s evaluation, Bulgaria is within the reference prices of convergence criteria and complies with legal requirements. Having participated in the exchange rate mechanism (ERM II) and Banking since July 1020, Bulgaria has taken another step towards European integration under difficult economic conditions.
Regarding the criterion of price stability in April 2025, the average of 12 months of HICP inflation in Bulgaria stood at 2.7%, ie below the 2.8%reference price. The reference price is based on the three Member States with the best performance in terms of price stability, ie Ireland (1.2%), Finland (1.3%) and Italy (1.4%), receiving their average inflation in the last 12 months and adding 1.5 percentage points.
Regarding the budgetary criterion, Bulgaria has not undergone an excessive deficit procedure since 2012. The general budget of the country’s government budget amounted to 3.0% of GDP in 2024, ie 3%. The general government of gross debt to GDP amounted to 24.1%, much below the 60% reference price and was well below 60% of GDP in the last 20 years.
Regarding the exchange rate criterion, the Bulgarian Lev participated in Erm II during the two -year reference period from May 20, 2023 to May 19, 2025. During the reference period, the LEA did not have a divergence from the central percentage of 1,95583 Levs per euro.
Bulgaria has completed almost all its commitments after ERM II’s entry, but further progress is needed to tackle excellent deficiencies in the field of money laundering and tackling terrorism.
The long -term interest rates in Bulgaria amounted to 3.9%, on average, during the reference period from May 2024 to April 2025 and was therefore below the 5.1% reference price for the interest rate convergence criterion.
Regarding the compatibility of national legislation, Bulgarian law is compatible with the conditions and statutes of ESCB, as required by Article 131 of the Treaty.