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Recently, the EU finance ministers officially approved Bulgaria’s adoption of the euro, set to take effect from January 1, 2026. This decision marks Bulgaria as the 21st member of the Eurozone, nearly 19 years after it joined the European Union in 2007. The euro will replace the Bulgarian lev at a fixed exchange rate of 1 euro = 1.95583 lev.

About the Eurozone

• The Eurozone comprises EU member states that have adopted the euro (€) as their official currency and fall under the monetary jurisdiction of the European Central Bank (ECB).
• The euro was introduced in electronic form in 1999 and entered physical circulation in 2002 across 12 initial member states.
• As of now, 20 countries use the euro, with Croatia being the latest entrant in 2023. Bulgaria will become the 21st in 2026.

Maastricht Convergence Criteria

To adopt the euro, EU member states must satisfy strict economic criteria to ensure stability and convergence with the Eurozone economies:

• Price Stability: Inflation should not exceed 1.5 percentage points above the average of the three best-performing EU states.
• Sound Public Finances:
  • Fiscal deficit ≤ 3% of GDP
  • Gross government debt ≤ 60% of GDP
• Exchange Rate Stability: The national currency must be part of ERM-II (Exchange Rate Mechanism) for at least 2 years without severe fluctuations.
• Interest Rate Convergence: Long-term interest rates must not exceed the average rates of the three lowest-inflation member states by more than 2 percentage points.

After years of delay due to high inflation, Bulgaria recently fulfilled all these criteria, leading to EU and ECB approval.

About Bulgaria

• Location: Southeastern Europe; occupies the eastern Balkan Peninsula.
• Borders:
  • North: Romania
  • South: Turkey & Greece
  • West: Serbia & North Macedonia
  • East: Black Sea
• Geography:
  • Major mountain ranges: Balkan Mountains, Rhodope Mountains
  • Highest peak: Mount Musala (2,925 m) in the Rila Mountains
  • Rivers: Danube, Iskur, Maritsa, Struma, Tundzha, Yantra
• Climate: Mostly continental; southern areas influenced by the Mediterranean.
• Capital: Sofia
• Population: ~6.4 million