Dhe doubts and misgivings about Bulgaria’s accession to the euro at the beginning of 2024 have recently been voiced ever louder. Now the transitional government in Sofia has pulled the ripcord. Finance Minister Rositsa Velkova stated that her country does not currently meet the necessary criteria for joining as a 21st euro member. Croatia only introduced the euro as legal tender at the beginning of the year. The parliament in Sofia has not passed the necessary laws, said Velkova. The government will therefore not submit a convergence report and will therefore not ask the EU Commission and the European Central Bank for the assessment required for the process. “We just didn’t meet the requirements,” she said. EU partners have also expressed concerns that Bulgaria has not met its commitments.
The EU member has been gripped by a paralyzing political crisis for years. On April 2, the Bulgarians are to elect a new parliament for the fifth time in two and a half years. The necessary laws must be passed soon, said Velkova. These include proposals to combat money laundering and corruption. After that, the country could possibly join the eurozone in 2025. A lack of clarity about an accession date “could have an adverse impact on both credit ratings and debt yields.”
Polls suggest that post-election misery could continue without clear majorities. Also, the euro does not seem to be popular. In surveys, more than half spoke out against its acquisition. Several small parties, including the pro-Russian Socialists and Nationalists, are calling for a referendum on the matter. The central bank is keeping the exchange rate of the Bulgarian lev to the euro relatively constant at 1.95 lev, although inflation, at 16.4 percent, is well above the EU average.