The European Commission (EC) posted on July 8 a “question and answer” article, following the decision earlier in the day by EU finance and economy ministers to approve Bulgaria adopting the euro as its currency as of January 1 2026:
What decision did the Council take today?
The European Commission published its 2025 Convergence Report on 4 June 2025. The report confirmed that Bulgaria has met the criteria to adopt the euro on 1 January 2026. As a result of that assessment, the Commission adopted proposals for a Council Decision on Bulgaria adopting the euro and a Council Regulation to include Bulgaria in the list of countries that have adopted the euro as their national currency. At the end of June, the Commission also adopted a second proposal for a Council regulation that sets the conversion rate at which the national currency will be replaced by the euro.
Based on a recommendation by the euro area Ministers of Finance, consultations in the Economic and Financial Affairs Council (ECOFIN), the endorsement by the Heads of State or Government (European Council), and favourable opinions by the European Parliament and the European Central Bank, the Council adopted today, 8 July 2025, the final three legal acts required to enable Bulgaria to introduce the euro on 1 January 2026. The three legal acts are:
- the Council Decision on the adoption of the euro by Bulgaria on 1 January 2026;
- the Council Regulation amending Regulation (EC) 974/98 on the introduction of the euro in Bulgaria;
- the Council Regulation amending Regulation (EC) 2866/98 on the conversion rate to the euro for Bulgaria.
What are the next steps in Bulgaria’s euro changeover?
Bulgaria will enter a transition period following today’s Council decision. During this period, Bulgaria will continue the practical preparations to ensure that the public and the private sectors are ready for the changeover. The preparations include various aspects such as:
- Dual display of prices in both lev and euro starting one month after the Council decision and ending 12 months after the introduction of the euro;
- Organising the frontloading and sub-frontloading of banknotes and coins;
- Adapting ATMs;
- Monitoring prices;
- Supervising traders and service providers.
The Commission’s services remain in close contact with Bulgarian authorities and are ready to provide the necessary technical assistance. The Bulgarian government recognises the importance of a transparent and informative communication campaign and has already launched a website where citizens and businesses can stay informed about the changeover.
As is standard practice when Member States join the euro area, the Commission organised a mission to Bulgaria in May 2025 to meet representatives from the public and private sectors. A second round of meetings will likely be organised in the autumn to assess progress in the final stages of preparation for the changeover.
How will today’s Council Decision and the euro changeover affect the Bulgarian economy?
Adopting the euro will bring real, everyday benefits to people and businesses in Bulgaria. For citizens, it means no more currency exchange fees when traveling or shopping online in other euro area countries. This makes cross-border payments easier and cheaper and encourages more trade and tourism.
The change will also bring more price transparency, making it easier to compare prices across borders. This boosts competition and helps consumers find better deals on goods and services.
Companies will benefit from being part of a much larger single currency market, making it easier to export and attract customers across the euro area.
Bulgarian firms will gain better access to finance. The euro is one of the most widely used currencies in the world, so joining the euro area opens the door to foreign investment, supporting job creation and rising incomes.
Finally, Bulgarian banks will become part of the euro area’s financial safety net. This includes access to European Central Bank (ECB) support in the event of a crises, such as during the early days of the COVID-19 pandemic.
Overall, the euro changeover strengthens Bulgaria’s economic stability and long-term growth prospects.
Does this affect Bulgaria’s control over its fiscal/economic policy?
Bulgaria’s economy and monetary policy are already closely linked to the euro area. This connection has been in place since the introduction of the currency board in 1997 and has been further strengthened by Bulgaria’s participation in the Exchange Rate Mechanism II and the Banking Union since 2020.
Bulgaria, like all EU Member States, already takes part in the coordination of economic and fiscal policies at the EU level. However, by adopting the euro, it will gain a seat at the table of the ECB decision-making bodies and will help determine the monetary policy for all euro area Member States.
Furthermore, Bulgaria will have a stronger voice by participating in the Eurogroup, an informal body gathering ministers from euro area countries to discuss euro-related matters.
Will the euro changeover lead to higher inflation or price increases in Bulgaria
On average, past euro changeovers have led to a very small and one-off increase in prices, ranging from 0.1% to 0.3%. Over time, however, the euro has a price stabilising effect. This is because the euro improves price transparency, increases competition, and reduces transaction costs for imports and exports, which represent a substantial part of GDP.
To address the concerns of Bulgarian citizens, the Bulgarian authorities are taking active measures as presented in the National Euro Changeover Plan. A smooth and effective changeover process will limit the risk of a small increase in prices, through close involvement of businesses, price monitoring to ensure correct conversion of prices, displaying prices in both currencies, guidelines for rounding prices, and communication campaigns and consumer education.
The Commission, the ECB, and national public and private stakeholders have been working hard on practical preparations for euro adoption. This work will intensify following the decision taken today by the Council, ensuring a smooth changeover to the euro in Bulgaria.
Are all non-euro area Member States obliged to adopt the euro?
All Member States, except Denmark, which negotiated an opt-out arrangement in the Maastricht Treaty, are legally committed to join the euro area.
However, it is up to individual countries to determine their path toward adopting the euro, and no specific timetable is prescribed.
The Member States that joined the EU in 2004, 2007, and 2013, after the euro was launched, did not meet the conditions for entry into the euro area at the time of their accession. Therefore, their Treaties of Accession give them time to make the necessary adjustments.
