Bulgaria is preparing to join the euro area, with the official adoption of the euro set for January 1, 2026. This development marks a significant milestone in the country's economic history and integration with Europe. The announcement was made at an event attended by Prime Minister Jeliazkov, Minister Petkova, and Governor Radev.
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) and a Bulgarian national, addressed attendees in Sofia. She highlighted Bulgaria’s journey from establishing its currency board in the late 1990s to now gaining voting rights at the European Central Bank (ECB). "On January 1, 2026, Governor Radev—who has already been attending ECB monetary policy meetings for some time now—will obtain the right to vote at the ECB Governing Council, not only on monetary policy but on matters such as banking supervision, financial stability, payment systems, and the issuance of euro currency, including the digital euro," Georgieva said.
She emphasized that while most ECB decisions are reached by consensus rather than votes, acquiring voting power is a crucial step: "Bulgaria is now fully empowered to help shape decisions that affect the euro area and, through the global role of the euro, the functioning of the international monetary system."
Georgieva noted that Bulgaria's entry into the euro area would be recorded as a key achievement alongside its accession to the European Union in 2007. She also pointed out Bulgaria’s readiness for adopting the euro due to its longstanding experience with a currency board arrangement. Preparations include dual-currency pricing ahead of January 1 and nationwide campaigns to inform citizens and businesses about switching currencies.
She stated: "But let us call it as it is: Bulgaria benefitted from European integration and will benefit further from joining the euro area. Bulgaria’s Recovery and Resilience Plan with the European Commission has been upgraded, and we see tangible progress on reforms and investments. Economic momentum is strong. Unemployment is at a record low. Real incomes are rising."
Fiscal discipline was highlighted as one of Bulgaria’s strengths; public debt remains among Europe’s lowest at 24 percent of GDP last year compared to an EU average of 65 percent.
Georgieva acknowledged ongoing challenges facing Bulgaria such as wage growth outpacing productivity growth, rising inflationary pressures from rapid credit expansion especially in mortgages and housing prices, population aging, brain drain issues, infrastructure needs driving fiscal spending pressures—and called for responsible policies aimed at protecting economic stability while boosting productivity.
She outlined three main tasks for domestic policy priorities without specifying them explicitly in her remarks but urged continued reform efforts: "Reforms are never easy, but progress is essential and—provided there is broad engagement, candid and persuasive communication, and strong steps to support those left behind—progress is achievable."
Regarding benefits from joining Eurosystem mechanisms such as ECB liquidity support or eligibility for emergency assistance through organizations like European Stability Mechanism (ESM), she said: "With good policies, euro adoption can increase both dynamism and resilience... Joining the Eurosystem means Bulgarian banks become eligible for ECB liquidity support via main refinancing operations and... emergency liquidity assistance... In addition... Bulgaria becomes eligible to join the European Stability Mechanism—the world’s largest regional financing arrangement—it should do so promptly."
Finally addressing broader responsibilities within Europe after accession she stressed: "Bulgaria’s first duty...is to decisively tackle its own shortcomings especially in governance—and it is Europe’s duty to insist on progress." She encouraged deeper economic integration across EU states particularly regarding completion of single market initiatives like banking union which remain incomplete.
In closing she said: "Let me finish with this simple message to my beloved Bulgaria at the eve of joining the euro: for the sake of the Bulgarian people and for the sake of Europe please make the best of it!"