site.btaBudget and Finance Committee Adopts Draft of Euro Introduction in Bulgaria Act at First Reading

The Parliamentary Committee on Budget and Finance adopted at first reading the draft of the Introduction of the Euro in the Republic of Bulgaria Act (IERBA), which regulates the principles, rules and procedures for the introduction of the euro as the currency of Bulgaria. The goal of the legislation is to ensure the smooth introduction of the euro in Bulgaria and to increase transparency and awareness of the euro adoption process in the country.

In order to implement the introduction of the euro, a legal framework must be established to regulate public relations in connection with Bulgaria's accession to the euro area by ensuring legal certainty and creating conditions for the smooth and efficient functioning of the economy.

Caretaker Deputy Prime Minister and Minister of Finance Lyudmila Petkova pointed out that the legislation does not set a specific date for the introduction of the euro or the official exchange rate of the lev, Bulgaria's current official currency, to the euro.

The legislation provides for the creation of a rule for automatic conversion from leva into euro and defines key rules for the changeover - for conversion and rounding.

The IERBA introduces specific rounding rules in relation to the payment of wages, benefits, cash allowances and pensions under the Social Security and Welfare Code.

The IERBA proposes the introduction of a so-called dual display of prices period, during which prices and other monetary amounts will be paid, credited and debited will be displayed in both currencies. This obligation shall start one month after the date of entry into force of the Decision of the EU Council on the adoption by Bulgaria of the euro and shall remain in force for one year after the introduction of the euro.

During this period, traders who receive a cash payment in leva will be obliged to return the surplus in euro, unless they do not have a sufficient cash reserve in euro on hand. The same will go for instances when a claim for goods or services is made. Traders may not increase the prices of their goods and services, unless this is justified by objective economic factors.

All accounts will be converted free of charge from the date of the euro introduction. Account holders will only be able to withdraw in euro, Petkova added.