Bulgaria has made significant progress in the financial convergence with the euro area from 2024 onwards, according to the European Central Bank (ECB) report on the convergence published today, Wednesday.

“This positive assembly of convergence paves the way for Bulgaria to adopt the euro from January 1, 2026 and become the 21st EU Member State that will participate in the euro area,” Philip R. Lane, a member of the ECB Executive Committee. “I would like to congratulate Bulgaria on the excellent dedication it has shown in order to make the required adjustments,” He stressed.

According to the ECB’s evaluation, Bulgaria is located within reference prices for the convergence criteria and complies with legal requirements. Having participated in the exchange rate mechanism (MSI II) and Banking since July 1020, Bulgaria is taking another step towards European integration into an environment of difficult economic conditions.

Achieving an environment that will contribute to sustainable convergence in Bulgaria requires the exercise of economic policies oriented to stability and the implementation structural reforms large -scale. These policies are more thoroughly examined in the report.

In terms of criterion of price stabilityin April 2025, the twelve -month average inflation based on ETK in Bulgaria stood at 2.7%, ie slightly lower than the 2.8% reference value (Figure 1). The reference price is based on the three Member States with the best performance in terms of price stability, ie Ireland (1.2%), Finland (1.3%) and Italy (1.4%), and is calculated on the basis of their average inflation rates in the last 12 months plus 1.5 percentage points.

In terms of Criterion for Public FinanceBulgaria has not undergone an excessive deficit from 2012 onwards. The fiscal deficit of the country’s general government stood at 3.0% of GDP in 2024, that is, at the level of 3% reference price (Figure 2). The ratio of the general government’s gross debt to GDP stood at 24.1%, much lower than the 60%reference price, and has remained much lower than 60%over the last 20 years.

As for the criterion of exchange rateLEV Bulgaria participated in MSI II during the two -year reference period from May 20, 2023 to May 19, 2025. During the reference period, the LEB did not diverge from the central exchange rate of 1,95583 LEB per euro. Bulgaria completed almost all the commitments it had made after joining MSI, but further progress is needed to address the shortcomings that still exist in the fight against money laundering and terrorism funding.

During the reference period from May 2024 to April 2025, the long -term interest rates in Bulgaria were on average in 3.9% and was therefore lower than the price Reporting 5.1% for the criterion of convergence of interest rates.

In terms of compatibility of national legislationBulgarian law is compatible with the conditions and statutes of the ESC, as defined by Article 131 of the Treaty.

It is noted that today’s report was published at its request Bulgarian And the ECB’s next regular report on convergence will be published in 2026.