Bulgaria is set to become the 21st member of the Eurozone on 1 January 2026, adopting the euro as its official currency. This milestone follows a rigorous evaluation process confirming that Bulgaria meets the Maastricht convergence criteria, including price stability, sound public finances, exchange rate stability, and long-term interest rates. The European Commission and the European Central Bank (ECB) published their off-cycle convergence reports in June 2025, affirming Bulgaria’s readiness for euro adoption.
The lev-to-euro conversion rate has been fixed at 1 EUR = 1.95583 BGN, aligning with Bulgaria’s participation in the European Exchange Rate Mechanism (ERM II) since 2020. Despite this progress, public sentiment remains divided; a Eurobarometer poll in May 2025 indicated that 50% of Bulgarians are sceptical about the euro adoption, fearing potential price increases.
To mitigate such concerns, the Bulgarian parliament has introduced year-long price controls starting August 8, 2025. This legislation mandates dual price labeling in both lev and euros until October 8, 2025, and allows government intervention if basic goods and services experience unfair price hikes. Penalties for violators range from €2,556 to €511,290, and large retailers are required to publish daily prices of essential items on their websites.
Romania: Euro Adoption Delayed
Romania, which joined the EU alongside Bulgaria in 2007, has yet to adopt the euro. The country is not currently participating in ERM II, a prerequisite for euro adoption. In March 2023, Romania’s government set a target to enter ERM II by 2026, with euro adoption aimed for 2029.
However, Romania faces significant economic challenges that complicate its path to euro adoption. The country has been under the EU’s Excessive Deficit Procedure due to a budget deficit exceeding the 3% of GDP threshold. According to the European Commission’s latest mid-term fiscal plan, Romania is targeting a deficit of 5.0% of GDP in 2024, with plans to reduce it below the required limit of 3% by 2027. Additionally, Romania’s structural budget deficit remains high, and the European Commission has advised the country to implement significant annual budget cuts to meet fiscal criteria.
Public support for euro adoption in Romania remains strong, with a Eurobarometer poll in April 2025 showing that 71% of Romanians favour adopting the euro. Nonetheless, without meeting the necessary economic criteria and entering ERM II, Romania’s euro adoption remains a longer-term objective.
EU Accession Talks: Current Status
As of August 2025, several countries are in various stages of EU accession talks:
- Montenegro: Negotiations commenced in 2012.
- Serbia: Negotiations began in 2014.
- Albania and North Macedonia: Both started negotiations in 2020.
- Moldova and Ukraine: Both began negotiations in 2024.
These countries are working towards aligning their institutions and policies with EU standards, a process that includes adopting EU legislation, strengthening democratic institutions, and ensuring economic stability. The duration and complexity of negotiations vary based on each country’s progress and specific challenges.
Bulgaria’s forthcoming euro adoption marks a significant step in its integration into the European Union’s economic framework, despite public reservations. Romania, while supportive of the euro, faces substantial economic hurdles that delay its entry into the currency union. Both countries’ experiences underscore the importance of meeting stringent economic criteria and the challenges of aligning national policies with EU standards in the pursuit of deeper integration.
Sources:
Bulgaria’s Euro Adoption Divides Public
https://www.rferl.org/a/bulgaria-lev-economy-euro/33466317.html
Bulgaria meets criteria to join the euro area on 1 January 2026
https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1386
Bulgaria sets price controls as euro transition nears
https://www.reuters.com/en/bulgaria-sets-price-controls-euro-transition-nears-2025-07-30
