Sofia had expressed the hope of joining the EU currency zone in the middle of next year, but would have to meet strict economic criteria to do so.
ADVERTISINGBulgaria cannot join the eurozone because of its high inflation, the European Central Bank said in a report on Wednesday.
The move is likely to cause disappointment in Sofia, which is seeking to become the currency zone’s 21st member, despite public concerns that it could exacerbate price increases in the Balkan state.
“The non-euro area Member States of the European Union have made limited progress in economic convergence with the euro area since 2022,” the ECB said in an ECB press release.
In Bulgaria, prices are rising by 5.1 percent annually, 1.8 percentage points more than would be needed to join the monetary union, the ECB said. However, it added that inflation would likely “gradually decline over the coming months” as supply constraints ease.
Countries do not automatically join the euro when they become EU members, but are expected to do so once they have adapted to legal and economic norms, such as stable exchange rates and sound public finances.
The only exceptions are Sweden and Denmark, which have negotiated political and legal exit clauses and retained their national currencies.
Political rumors
According to Bulgarian news agency BTA, Deputy Finance Minister Metodi Metodiev expressed hope on June 4 that Bulgaria could join the euro in mid-2025, as the more favourable economic conditions would allow the country to apply for an additional EU assessment.
But just a few days later, the country was plunged into political turmoil following national and European elections in which the far right won a strong victory.
The pro-Russian, ultra-nationalist Vazrazhdane party secured around 14 percent of the vote and three of the country’s 17 MEPs after declaring that the euro would destroy the Bulgarian economy.
The GERB party of former Prime Minister Boyko Borissov now needs at least two partners to form a government coalition – and leaving the Lev is unlikely to bring it any votes.
According to a Eurobarometer survey, only 49 percent of Bulgarian citizens are in favor of joining the euro and 64 percent of the population believe that this will lead to further price increases.
Inflation fears
After the pandemic, inflation rose to as high as 17 percent in some EU countries as the war in Ukraine pushed up energy and food prices.
The ECB, whose job it is to keep inflation at around two percent, is monitoring how inflation in the euro candidate countries compares with the best-performing EU countries. Last year, these were Denmark, Belgium and the Netherlands.
The other EU members, the Czech Republic, Hungary, Poland and Romania, have not adapted their legislation to EU standards and have not joined the exchange rate mechanism, a means of avoiding strong currency fluctuations against the euro.
At the beginning of June, Romania was criticised by Brussels for having the highest budget deficit in the EU at seven percent in 2025.
Previously, there had been years of calls in Bucharest to balance the state coffers and to implement tax and wage reform in the public sector.
Hungary under Viktor Orbán has long been eurosceptic, and in Warsaw ministers remain reluctant to abolish the zloty, despite improved relations with Brussels since Prime Minister Donald Tusk took office.
To stay up to date with the latest developments in EU policy, subscribe to our newsletter The Policy Briefing here. It provides you with weekly insights into European legislation, key events and data trends.
