Bulgaria is set to join the eurozone and start using the euro as its official currency on January 1, 2026. This decision comes after the country met strict rules set by the European Central Bank and the European Commission.

The Eurogroup, which is made up of finance ministers from countries using the euro, gave its approval in June 2025. The final step is a formal vote by all EU finance ministers, which is expected to pass.

Bulgaria’s economy met all the key requirements. Its inflation rate over the past year was 2.7%, just below the 2.8% limit. The country’s government debt is 24.1% of the size of its economy, much lower than the eurozone’s 60% ceiling.

The budget deficit, which is how much more the government spends than it earns, was 3%—right at the allowed maximum. Bulgaria’s currency, the lev, has been linked to the euro for years, so the switch should be smooth.

To help meet the inflation target, Bulgaria’s government made a big cut to hospital fees in April 2025. This move helped bring inflation down to the required level, but some experts question if this drop will last.

Bulgaria’s Eurozone Bid: Hard Numbers, Real Motives, and What’s at Stake for Business. (Photo Internet reproduction)

Many Bulgarians remain unsure about the change. Surveys show that about half of the population worries the euro will lead to higher prices or make it harder for the country to control its own economy.

Bulgaria’s Eurozone Entry

For businesses, switching to the euro brings clear benefits. Companies will no longer have to worry about changing money between the lev and the euro. This means lower costs and easier trade with other eurozone countries.

The government also expects to borrow money at lower interest rates, which could help the economy grow. Official forecasts predict the economy will grow by 2.8% in 2025, with public finances staying within EU rules.

However, joining the eurozone also means Bulgaria will lose some control over its own economic policies. The country will have to follow the same rules as other eurozone members and could be affected by problems in other countries that use the euro.

Bulgaria’s large informal economy and public doubts about the euro remain challenges. Bulgaria’s move to join the eurozone is a major step for the country. It shows a commitment to economic stability and closer ties with the rest of Europe.

The change brings both opportunities and risks for businesses and citizens. How well Bulgaria manages the transition will shape its economic future for years to come.