Brussels – Bulgaria is not ready to adopt the euro. Of all the EU member states without the single currency, it is the country with the most papers in order and, therefore, the best chance to further enlarge the euro area. But it still does not meet one criterion, that of price stability. Compounded also by higher than reference target of 2 percent and rising inflation (2.5 percent in April and 2.7 percent in May), the Commission cannot give the go-ahead for Bulgaria’s entry into Euroland from January 1, 2025, as the government in Sofia would have liked.
The convergence report prepared as every year in Brussels gives no room for doubt. “The Commission considers that Bulgaria does not meet the conditions for adopting the euro.” It has to be postponed, again. Bulgaria tried to become the 21st EU state with the single currency for this year, but failed. The replacement of the Lev with the euro had thus been postponed for a year, and the Commission’s report means a new delay, to 2026 if all goes well.
Countries must fulfill four criteria (convergence criteria or Maastricht parameters) to adopt the single currency. These are price stability (measured with inflation), fiscal health (debt and deficit to GDP ratios), sustainability of convergence (long-term interest rates), and exchange rate stability (at least two years without severe fluctuations within the Exchange Rate Mechanism are needed).
