site.btaEurozone: to Join or Not to Join?

To join the eurozone from January 1, 2026, Bulgaria has to request an extraordinary convergence report by the end of February at the latest. Experts say that the EU institutions will need six to eight weeks to prepare the report, so that a decision could be adopted by May-June 2025.

Parliament has given the cabinet two weeks after Bulgaria has met all convergence criteria to apply for a convergence report. This was not done in January because, as Finance Minister Temenuzhka Petkova argued, the only criterion left - inflation, fell short of the mark by just several hundredths of a percentage point in December. Prime Minister Rosen Zhelyazkov went on record as saying that a request for a report will be sent after February 18.

In a recent report, the Bulgarian National Bank projected that January inflation will comply with the requirement and the price stability rule will be within limits until the end of the year. The National Statistical Institute will publish the January figures on February 14, and the Eurostat release will be out on February 24.

Replying to a BTA question, European Central Bank (ECB) President Christine Lagarde said recently that Bulgaria's integration into the eurozone is progressing well and is moving forward. Lagarde pointed out, that the European Commission will make the decision as the ECB's role is limited to assessing the country's alignment with inflation, fiscal position, and sustainability. 

Those in Favour

While officially the adoption of the common European currency remains a priority for the GERB-dominated Bulgarian Government, its position appears overcautious.

Former deputy prime minister Atanas Pekanov argued that the worst thing will be to ask for a report and get a refusal because this will leave the country out of the eurozone for another two or three years and the financial markets will respond negatively.

The junior partners in the ruling coalition take a rather positive view of the drive.

BSP-United Left are adamant that a report should only be requested when the country is really ready for entry on the basis of reliable data on the financial standing, BSP-United Left MP Galin Durev told Nova News.

There Is Such a People Floor Leader Toshko Yordanov said on National Radio that his party does not oppose accession to the eurozone.  

Of the parliamentary opposition, Continue the Change - Democratic Bulgaria (CC-DB) are actively campaigning for entry and have even claimed that the Cabinet is "sabotaging" the effort by delaying the request for a convergence report. GERB leader Boyko Borissov reacted by saying that "everything possible will be done" to take this step so as to achieve a political decision from the European Commission.

Movement for Rights and Freedoms (MRF) leader Delyan Peevski told journalists that "a convergence report must mandatorily be requested, the euro must be introduced immediately."

The employer associations and the trade unions, too, remain committed to the fastest possible accession of Bulgaria to the eurozone, which means that business and government form a united front backing the drive.

Those Against

In Parliament, Vazrazhdane and MECh oppose the adoption of the common European currency.

Vazrazhdane leader Kostadin Kostadinov said on National Radio that keeping Bulgaria out is his party's top priority. He threatened that if entry is secured by "fake data", his party will spearhead street protests, and the people will storm Parliament and the Council of Ministers, and "we will set you on fire". Talking to the media, Kostadinov described the eurozone entry as "the worst blow to people's incomes and savings since 1997" and that this "theft" should not be allowed to happen by any means. In his opinion, accession at this point would be a "disaster for public finance".

CC-DB MPs have dismissed Vazrazhdane's arguments as "scaremongering".

In a recent Myara agency poll, 57.1% of respondents said they opposed Bulgaria adopting the euro, 39% were in favour, and 3.9% were undecided. As many as 41.4% believe that rejecting the euro is the right step, 30.8% would like the adoption to be postponed, and just 25.7% want eurozone entry on January 1, 2026.

Experts' Petition

At the end of January, prominent economists and financial experts, including Evgenii Kanev, Georgi Ganev, Krasen Stanchev, Svetla Kostadinova, Tihomir Bezlov, Iliyan Vasilev and Miroslav Sevlieveski, initiated a petition addressed to the National Assembly Chair, the Prime Minister and the President. The petitioners argue that unless the Government takes urgent action for Bulgaria's accession to the eurozone, there is an escalating risk of a new wave of social grievances and political demagogy. It is highly probable that the ensuing logical consequence would be a political decision to abandon the lev-euro fixed exchange rate, thereby ending the currency board arrangement and existentially jeopardizing the stability of the country's monetary, financial and social system, the petition warns.  

"Bulgaria does not need unjustified social experiments. It needs bold decisions to bring back investors and restore optimism in households and the business community," the experts point out, calling for the submission of a request for an extraordinary convergence report by the end of February at the latest.