Association of Banks in Bulgaria states strong support for country’s January 2026 euro accession
The Association of Banks in Bulgaria (ABB) said in a May 20 statement that is strongly supports Bulgaria’s accession to the euro area from January 1 2026.
Following a request by Bulgaria, the European Commission and European Central Bank will on June 4 issue special convergence reports on whether the country qualifies to join the euro zone, and these reports will be followed by decisions by the relevant European institutions.
ABB said that it welcomes the continued implementation of the euro zone membership criterion on price stability.
“The data reported in the member states in April confirm the trend of a significant decrease in inflation in our country in recent months,” ABB said.
“This clearly proves that Bulgaria fully and permanently meets the requirements for euro zone membership,” it said.
ABB said that Bulgaria has one of the lowest debt levels – at the end of the year the government debt to GDP ratio was 24.1 per cent, significantly below the EU average of 81 per cent.
The budget deficit is within three per cent, the long-term interest rate for assessing the degree of convergence at the end of March was 3.9294, the association said.
“Bulgaria also reported remarkable economic growth of 3.1 per cent for the first quarter, which places us among the leading places in the EU,” the statement said.
“Bulgaria unreservedly and consistently makes efforts towards full membership in the European Union – both with the stated Negotiating Position and the Additional Information to it under Chapter 11 “Economic and Monetary Union” from 2001, the Pre-Accession Economic Programs for the periods 2002-2005 and 2004-2007, and by reaffirming the commitment to the future adoption of the single European currency with the Accession Treaty, in force since January 1 2007,” ABB said.
“The Association of Banks in Bulgaria firmly stands behind the belief that the adoption of the single European currency from January 1 2026 is the logical finale of the consistent and consolidated efforts of both the state and the entire banking sector.”
ABB said that by adopting the euro, Bulgaria will move from a currency board regime to participation in the EU’s common monetary union.
This transition will support economic development, accelerate reforms and increase the welfare of society, the association said.
Joining the euro zone will have a significant positive impact on the Bulgarian economy, both for citizens and businesses, ABB said.
“Citizens and businesses will feel the advantages not only through reduced transaction costs, but also through the creation of a more favourable investment environment. It is also expected that domestic and foreign investments will be activated, which will stimulate employment and support economic growth.
“Our country’s accession to the euro zone will contribute to the activation of international trade and will facilitate the access of Bulgarian companies to new markets. These processes would also contribute to faster convergence with other European countries,” ABB said.
Since 2020, Bulgaria has been a member of the Single Supervisory Mechanism and the Exchange Rate Mechanism II (ERM II), which means that the banking sector is practically already part of the euro area, it said.
Banks are fully prepared to welcome the euro as the country’s new national currency, and also as a symbol of our deeper integration with the European Union, the statement said.
The euro is the official currency in 20 European countries, covering around 350 million people, ABB said.
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