Bulgaria secures irreversible path to euro adoption from January 2026

Bulgaria will become the 21st member of the euro area as of 1 January 2026, after receiving final approval from the European Parliament and the EU’s Economic and Financial Affairs Council (ECOFIN), marking the irreversible start of its full integration into the monetary union.

On Tuesday (8 July), ECOFIN adopted the three legal acts completing Bulgaria’s euro accession process: the Council Decision on the adoption of the euro by Bulgaria, a Council Regulation amending Regulation (EC) No 974/98 as regards the introduction of the euro in Bulgaria, and a Council Regulation fixing the conversion rate for the Bulgarian lev.

“The euro area will welcome its 21st member as Bulgaria takes its place at the heart of our monetary union. This marks the culmination of a rigorous process of convergence and intensive preparation. I warmly congratulate Bulgaria and its people on this historic achievement,” said Danish Finance Minister Stephanie Lose, who chaired the ECOFIN meeting. Denmark holds the rotating Presidency of the Council of the EU from 1 July.

#Ecofin | The Council adopted the final steps for Bulgaria to join the euro area and activated the national escape clause for 15 member states to ramp up defence spending.
Find out what else was on the agenda ➡️https://t.co/7FM0zq93mM
— EU Council (@EUCouncil) July 8, 2025

As it was expected, the Council set the irrevocable exchange rate at 1.95583 Bulgarian lev per euro, identical to the current central rate under the Exchange Rate Mechanism (ERM II).

Shortly before the Council decision, the European Parliament also gave its green light with an overwhelming majority: 531 votes in favour, 69 against, and 79 abstentions.

“Bulgaria has reached a long-standing strategic objective – accession to the eurozone – the result of years of dedicated effort,” said Finance Minister Temenuzhka Petkova during the signing ceremony. According to her, membership in the common currency area will provide a solid foundation for sustainable economic growth, a more predictable business climate, and improved living standards for Bulgarian citizens.

“This vote sends a clear signal. Bulgaria is ready for euro adoption. All criteria have been met, and this step is essential for Bulgaria’s full European integration for the country and its citizens,” said Bulgarian MEP Eva Maydell (EPP), the European Parliament’s rapporteur on Bulgaria’s euro accession.

A geopolitical milestone amid disinformation risks

The eurozone accession carries not only economic significance, but also geopolitical weight for Bulgaria, a country exposed to persistent pro-Russian disinformation narratives and where a substantial portion of the population remains nostalgic for the pre-1989 communist period.

The ten big lies about the euro designed to terrify Bulgarians

Welcoming the decision, a large banner reading “Bulgaria, welcome to the eurozone!” was displayed on the Charlemagne building of the European Commission in Brussels.

"Welcome to the Euro, Bulgaria!” Banner Displayed on European Commission Building pic.twitter.com/W9IDxCWH0T
— Bulgarian News Agency (@BTAnewsENG) July 7, 2025

“The introduction of the euro is only the beginning. Success will depend on how we capitalise on the opportunities ahead,” said Bulgarian National Bank (BNB) Governor Dimitar Radev in an interview with the national press agency BTA. He stressed the importance of fiscal discipline in the coming period. “We have witnessed a deterioration of the fiscal position in recent years. This trend must be reversed. Fiscal stability has long been one of our key comparative advantages, and it becomes even more crucial within the euro area,” he warned.

Farewell to the lev: a symbol of national identity

As Bulgaria prepares to retire the lev after nearly a century and a half of monetary history, economists and historians alike have reflected on the currency’s legacy. Professor Ivan Rusev, a leading academic in the field, traced the origins of the lev and its role in shaping national identity.

The lev was officially established in 1880, just two years after Bulgaria’s liberation from Ottoman rule. Adopted through legislation on 27 May 1880 (published on 4 June), the lev was modelled on the French franc and operated under the principles of bimetallism, following the standards of the Latin Monetary Union which included France, Belgium, Italy and Switzerland.

Coin minting began the following year, with denominations ranging from stotinki to 20 leva. The Bulgarian National Bank was created shortly after to serve as the country’s monetary authority. Interestingly, prominent politician and revolutionary Stefan Stambolov had advocated for calling the currency “franc”, but the decision to create a distinctly national name reflected Bulgaria’s desire to assert its sovereignty and align with the concept of the nation-state.

“The lev was never designed to compete with dominant global currencies, but its parity with the franc gave it a certain degree of monetary stability,” Rusev explained, noting the prominence of the franc as Europe’s most trusted currency throughout the 19th century.

Even after the lev was introduced, the French franc remained in circulation and was used in domestic transactions, owing to its gold and silver backing. “Until the mid-20th century, Bulgarians frequently relied on old French coins for secure, informal payments,” said Rusev.

Isolation and reorientation

After World War II, Bulgaria was pulled into the Soviet sphere of influence, cutting it off from Western Europe’s post-war integration processes. In 1952, the lev was pegged to the Soviet ruble and lost convertibility with other major currencies.

The collapse of the communist regime in 1989 paved the way for Bulgaria’s reintegration into Europe. A devastating financial crisis in 1996 led to the adoption of a currency board arrangement in 1997, pegging the lev to the Deutsche Mark, then one of the world’s most stable currencies.

With the launch of the euro and the creation of the European Central Bank in 1998, Germany abandoned the mark in favour of the common currency, and Bulgaria’s monetary peg was automatically transferred to the euro.

Now, nearly three decades later, Bulgaria’s journey towards European integration will be completed with the lev’s replacement by the euro — a change rooted in history but aimed at the future.

Caption: Familiy photo after the signing ceremony. From left to right: Luis DE GUINDOS JURADO (Vice-President of the European Central Bank, ECB), Valdis DOMBROVSKIS (European Commissioner for Economy and Productivity; Implementation and Simplification, EUROPEAN COMMISSION), Stephanie LOSE (Minister for the Economic Affairs, Denmark), Temenuzhka PETKOVA (Minister for Finance, Bulgaria), Paschal DONOHOE (Minister for Finance, Ireland)