Bulgaria Set to Join Eurozone in January

Marking a milestone in its European integration, Bulgaria is poised to become the 21st member of the eurozone. This move culminates a meticulous accession process.

Legislative Approval Secured

The Council of the European Union granted its definitive approval on July 8, paving the way for Bulgaria to adopt the euro starting January next year. Just hours prior, the European Parliament overwhelmingly endorsed Bulgaria’s entry with 531 votes.

These votes finalized the procedures necessary for the nation to become the eurozone’s newest member.

Leaders Hail Accession

“From today, Bulgaria takes its place as the 21st member of the eurozone. This marks the culmination of a thorough process towards Bulgaria’s accession, comprising rigorous analysis and intensive preparation. I warmly congratulate Bulgaria and the Bulgarian people on this tremendous achievement,” said **Stephanie Lose**, Danish Minister for Economic Affairs.

Conversion Rate Fixed

One of the enacted legal measures establishes the conversion rate between the euro and the Bulgarian lev at BGN1.95583 to €1. This rate aligns with the lev’s current central rate within the Exchange Rate Mechanism (ERM II).

“Today’s vote sends a clear signal: Bulgaria is ready to join the Euro area. All criteria have been met, and this step marks a key milestone towards Bulgaria’s full European integration – for the country and its citizens,” stated **Eva Maydell**, EU rapporteur for Bulgaria.

Only 69 MEPs opposed the decision in the European Parliament, while 79 abstained.

End of Currency Board

Bulgaria’s eurozone entry will discontinue the currency board system, which has pegged the lev to the euro for the past 30 years. This system helped stabilize the Bulgarian economy after a financial crisis in the 1990s, but joining the Eurozone represents a new phase of economic integration.

Transition Period

Bulgarians can exchange their levs for euros without charge until the end of June next year. Following this period, commercial banks may impose fees, but the National Bank of Bulgaria (BNB) will continue to offer free exchange services.

To ensure a smooth transition, all prices in Bulgaria will be displayed in both euros and levs from August 8 of this year until the end of 2026. Both currencies will be in use in January 2026.

Congratulations to Bulgaria, the 21st member of the euro area! Both the euro area and Bulgaria are getting stronger. Practical benefits of membership: lower interest rates, better access to finance, no foreign exchange fees, easier international payments, greater price transparency.

— Valdis Dombrovskis (@VDombrovskis) June 12, 2024

**Valdis Dombrovskis**, EU Commissioner for Economy and Productivity, shared his congratulations on X, highlighting the practical benefits of membership: lower interest rates, better access to finance, no foreign exchange fees, easier international payments, greater price transparency.

Path to Accession

Bulgaria satisfied all nominal criteria by January of this year. The formation of a regular government at the end of last year was also crucial, leading to positive assessments from both the European Central Bank (ECB) and the European Commission. Bulgaria had requested extraordinary convergence reports in February, which were subsequently released on June 4.

As of 2023, Bulgaria’s gross debt to GDP ratio stood at 23%, far below the EU average of 81.7%, indicating sound fiscal management (Trading Economics).

Background

Bulgaria became a member of the EU in January 2007.