Bulgaria’s Parliament ratifies country’s membership of European Stability Mechanism

Bulgaria’s National Assembly approved on May 20 the first and second reading of the ratification of the Treaty establishing the European Stability Mechanism.

The European Stability Mechanism (ESM) provides financial assistance to euro area countries in crisis, acting as a lender of last resort to ensure the financial stability and prosperity of the euro area.

Ratification was tabled on May 7 by the now-former caretaker government, following Bulgaria having adopted the euro as its currency as of January 1 2026.

In the May 20 vote, ratification was approved by a large majority, with votes in favour coming from Roumen Radev’s Progressive Bulgaria, GERB-UDF, the Movement for Rights and Freedoms, Democratic Bulgaria, and We Continue the Change.

Parliament’s smallest group, pro-Russian party Vuzrazhdane, voted against, as did two Progressive Bulgaria MPs.

After Parliament’s ratification is published in the State Gazette, Bulgaria will have to contribute its share to the ESM’s capital.

Initially, the state is expected to take advantage of the opportunity for a “temporary correction period” of 12 years, which means that over five years of contributions, Bulgaria will give the ESM about 600 million euro.

After the correction period expires, Bulgaria will have to pay the balance until the total paid-in capital in the ESM reaches 992 million euro.

On May 7, then-caretaker Finance Minister Georgi Klisurski said that Bulgaria must join the ESM because the country was already a member of the euro zone.

Klisurski described the ESM as “the best life insurance for Bulgaria’s financial health that we can take out and use now that we are members of the euro zone”.

(Photo: G Schouten de Jel)