European Central Bank says Bulgaria still can’t join the eurozone 

In its recent statement, the ECB noted that “limited progress has been made by non-euro area EU Member States in terms of economic convergence with the euro area since 2022.”

Bulgaria’s inflation currently stands at 5.1% annually, exceeding the threshold by 1.8 percentage points. The ECB did suggest, however, that inflation is expected to “gradually decline” as supply chain issues ease.

Bulgaria had hoped to adopt the euro by mid-next year, but strict economic requirements must first be met. The news is likely to be disappointing as the country has been striving to become the eurozone’s 21st member despite concerns among citizens that joining could drive up prices in the country.

At a press conference, Bulgarian Prime Minister Dimitar Glavchev acknowledged the ECB’s findings and announced plans to request a new evaluation from EU authorities once Bulgaria meets all of the eurozone entry criteria.

Although EU countries are expected to join the euro once they meet specific legal and economic benchmarks, such as stable exchange rates and sound fiscal policies, Bulgaria still has work to do.

Deputy Finance Minister Metodi Metodiev expressed optimism that Bulgaria could enter the eurozone by mid-2025, provided the economic conditions become more favourable for a reevaluation. According to a Eurobarometer survey, only 49% of Bulgarians support adopting the euro, with 64% fearing it would lead to further price increases.

Inflation surged in many EU countries post-pandemic, exacerbated by the Ukraine war’s impact on energy and food prices.

The ECB, tasked with maintaining inflation around 2%, evaluates potential eurozone members based on inflation rates in the EU’s strongest economies, which last year included Denmark, Belgium, and the Netherlands.

Other EU members like Czechia, Hungary, Poland, and Romania have also not yet aligned with EU economic standards or joined the exchange rate mechanism, a critical step in stabilising currency fluctuations with the euro.

Romania, in particular, has faced EU pressure due to its projected budget deficit of 7% by 2025, while Hungary remains eurosceptic, and Poland, despite improving ties with the EU, remains cautious about replacing the zloty with the euro.