site.btaBulgaria Expected to Meet Inflation Criterion for Euro Area Membership by End-2024, Deputy Finance Minister Says

Forecasts from Bulgaria’s Finance Ministry and the European Commission suggest that by the end of the year, this country may meet the inflation criterion, the final requirement for entering the euro area. Following that, the strategy of the caretaker government will proceed as planned, caretaker Deputy Minister of Finance Metodi Metodiev said as quoted by his Ministry on Thursday. Metodiev was addressing students at the 21st Youth Economic Forum organized by the Student Council of the University of National and World Economy and the National Representation of Student Councils. 

Metodiev briefed the students on Bulgaria’s progress toward euro area membership. He recalled that this country is now a full-fledged member of the Banking Union and the Bulgarian lev is part of the Exchange Rate Mechanism II. "Bulgaria is de facto part of the euro area in the banking sector," he said. Metodiev noted that the Bulgarian lev has been pegged to the euro since the creation of the single currency. "Once we enter the euro area, the euro will shift from being a reserve currency to becoming the legal tender of our country. The introduction of the euro is also expected to lead to institutional convergence with the developed EU countries, particularly regarding the quality of institutions in Bulgaria and public trust in them. This will bring social and economic benefits," the Deputy Minister said.