Bulgaria is close to overcoming a major obstacle to the adoption of the euro, putting the Black Sea country on track to join the single currency region next year.
The mini-coalition government headed by Prime Minister Rosin Zhlyazkov is awaiting an assessment of its readiness on June 4, when the European Commission and the European Central Bank will report on Bulgaria's readiness to join.
According to the latest forecasts issued by the European Union's executive branch, Brussels is increasingly convinced that Bulgaria will meet the standards of fiscal discipline and currency stability, according to EU officials familiar with the file. The positive evaluation may open the door to the adoption of the euro from the beginning of 2026.
Although the decision has not yet been decided, and may be changed, officials are optimistic that the assessment will be positive, especially in light of Bulgaria's recent progress in reducing inflation rates.
If that happens, EU leaders will give their formal approval during a summit in June, according to people familiar with the matter. The final exchange rate between the Bulgarian currency "Lev" and the euro will be determined by the Union's finance ministers, which may be done as soon as possible in July.
The yields of nine-year and thirteen-year Bulgarian euro-denominated bonds, which were launched last month, hit their lowest levels since they began trading on Friday.
A spokesman for the European Commission told Bloomberg that the executive arm of the European Union is currently close to completing its assessment of Bulgaria's readiness standards, in coordination with the European Central Bank, and intends to adopt its report in early June. The spokesman did not comment on the expected results of that assessment, and a spokesman for the European Central Bank declined to comment.
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