This time the ECB considered the Bulgarian economy “sufficiently prepared”.
Thus, according to ECB Executive Board member Philip R. Lane, Bulgaria had sought to introduce the European currency several years ago. Lane, Bulgaria sought to introduce the European currency several years ago. But it failed to do so because of high inflation, since one of the criteria for joining the eurozone is sustainable price stability.
It was originally planned that the euro would be introduced from the beginning of 2025, but the EU decided that the country was not ready by then. In 2024, Bulgaria’s inflation rate was 2.7%, which is below the required rate.
From 2020, the Bulgarian lev is pegged to the euro through an exchange rate mechanism.
“I want to congratulate Bulgaria for the tremendous tenacity with which it has hosted the necessary adjustments,” said Philip R. Lane.
For its part, the European Commission gave its approval for Bulgaria’s admission to the euro zone, as the Bulgarian Cabinet met all the conditions set forth. The head of the European Commission Ursula von der Leyen noted that Bulgaria will become the 21st member of the euro zone.
If the country gets this membership, it will also become the poorest euro-country. One way or another, the ECB’s decision should be approved by the finance ministers of the EU countries.
