On June 4, 2025, the European Central Bank (ECB) gave Bulgaria a significant boost on its path to Eurozone membership by issuing a positive convergence report. This development confirms that Bulgaria meets the economic and legal benchmarks required to adopt the euro. If the process unfolds as expected, Bulgaria will become the 21st member of the Eurozone on 1 January 2026. This milestone holds implications for investors, businesses, and cross-border operations in the region.
News
The ECB’s favourable assessment triggers a timeline of crucial meetings and decisions throughout June and July 2025 that will determine the country’s formal entry:
- June 19: Eurogroup finance ministers meet in Luxembourg to review the convergence reports and approve a draft recommendation for Bulgaria’s accession.
- June 20: The ECOFIN Council (finance ministers of all 27 EU states) is expected to formally adopt the recommendation.
- June 26–27: EU leaders will convene in Brussels to politically endorse Bulgaria’s entry and discuss the proposal by the European Commission.
- June 30: The European Commission will propose the fixed exchange rate, expected to remain at 1.95583 BGN per 1 EUR, aligned with the existing currency board arrangement.
The fixed rate is consistent with Bulgarian legislation and in line with Article 140(3) of the Treaty on the Functioning of the European Union. The decision was first passed by the 48th National Assembly in October 2022 and reaffirmed by the 50th Assembly in July 2024.
- July 8: Final legislative approvals are expected from ECOFIN and the European Parliament (simple majority required).
- August 8 (estimated): Bulgaria will begin dual price displays in BGN and EUR, lasting 12 months post-introduction of the euro.
It is worth noting that Bulgaria retains the legal option to exit the process before the accession treaty is signed, should agreed conditions not be met.
Eurofast’s Take
As Bulgaria approaches Eurozone membership, businesses operating in or entering the country should begin preparing for currency conversion impacts on contracts, accounting, payroll, pricing models, and financial reporting. Eurofast can assist with:
- Assessing euro adoption implications for multinational operations and compliance.
- Adapting payroll systems and accounting practices to the dual-currency phase.
- Navigating legal and fiscal changes linked to euro adoption and maintaining regulatory alignment.
With a deep presence in Southeast Europe and hands-on experience in cross-border financial structures, Eurofast is well-positioned to guide companies through the euro transition smoothly and compliantly.
For further queries, please, contact us at [email protected]