The law for introducing the euro in Bulgaria has made its way onto the parliamentary agenda and could be passed before the deputies' vacation (starting August 17). On July 25, the bill, which had already been approved by the European Commission (EC) and the European Central Bank (ECB), was voted on at the first reading by the relevant budget committee. This is the final legislative act needed to adopt the single European currency. The law details the transition to the euro. The goal is for a smooth transition free from abuse.
Currently, Bulgaria meets all criteria for adopting the euro except for inflation. Data suggests that even the inflation criterion might be met by autumn. In that case, Sofia can request a new independent assessment from the EC and the ECB. If the report is positive, a date for membership can be set. The Bulgarian authorities have expressed a desire for this to happen by mid-2025, although such decisions usually happen at the beginning of the year.
However, good political coordination and determination are needed because Bulgaria remains in a political crisis, and almost certainly there will be new elections in September. This is likely why the budget committee approved a declaration submitted by GERB, mandating the government and the Bulgarian National Bank (BNB) to accelerate preparations for adopting the euro. A similar document was also voted on in 2022, under another caretaker cabinet, to demonstrate to EU partners that there is strong political will and support for Bulgaria's accession to the eurozone.
Important for business
The law introducing the euro is highly anticipated by businesses as it outlines practically how the currency transition will occur. The goal is to give companies enough clarity and time to adjust their systems and, if necessary, their operations. After the law's adoption, the government must also approve changes to certain regulations such as, for example, cash registers.
The project foresees a dual display period for prices of goods and services in euros and leva to start one month after the decision for euro adoption comes into force and to end 12 months after the euro's introduction in Bulgaria.
Additionally, during the dual display period, the total final amount payable by the consumer must be shown in both euros and leva on issued fiscal/system receipts or other payment documents, alongside the official exchange rate of the leva to the euro. From the euro adoption date, receipts will show values only in euros.
From the entry date into the eurozone, all banks and other payment service providers must convert all leva balances to euros without fees or commissions. The official exchange rate of the leva to the euro is irrevocably fixed at 1.95583 leva per euro.
The planned transition period, where both leva and euros can be used for payments, is short - only one month. Thus, businesses will need to maintain dual accounting during this period and have dual cash registers if payments are in cash.
The new indicative date is mid-2025
The legislative framework for euro adoption must be ready by the end of 2024, and technical preparations must be completed by the first quarter of 2025. The document states that the country should join the eurozone while maintaining the official exchange rate of the leva to the euro at 1.95583 leva per euro.
Based on proposals from Assen Vassilev and Martin Dimitrov, deputies from WWC-DB, the declaration obliges the government to request extraordinary convergence reports from the ECB and the EC within two weeks of Bulgaria meeting the price stability criterion.
The declaration also mandates the government to request an accession date of July 1, 2025, during negotiations if the criterion is met by the end of 2024. According to Vassilev, consultations during his term as finance minister showed that businesses would not have issues with introducing the euro mid-year. The declaration aims to reaffirm the strong political will of the parliamentary majority to accelerate preparations for full eurozone membership.
The law for introducing the euro in Bulgaria has made its way onto the parliamentary agenda and could be passed before the deputies' vacation (starting August 17). On July 25, the bill, which had already been approved by the European Commission (EC) and the European Central Bank (ECB), was voted on at the first reading by the relevant budget committee. This is the final legislative act needed to adopt the single European currency. The law details the transition to the euro. The goal is for a smooth transition free from abuse.
Currently, Bulgaria meets all criteria for adopting the euro except for inflation. Data suggests that even the inflation criterion might be met by autumn. In that case, Sofia can request a new independent assessment from the EC and the ECB. If the report is positive, a date for membership can be set. The Bulgarian authorities have expressed a desire for this to happen by mid-2025, although such decisions usually happen at the beginning of the year.
