Bulgaria’s central bank has signalled a postponement of the country’s entry into the euro zone until mid-2025 at the earliest.Bulgaria aimed to become the 21st country using the currency as part of a decades-long post-Soviet pivot to the West.
Although the Bulgarian lev (BGN) has been pegged to the euro since 1999, euro zone membership had already been delayed a year in Bulgaria. Failing to live up to inflation expectations along with serial government crises are the official explanation. At the same time, an Austrian veto is preventing full Schengen zone membership due to concerns over migration and asylum.
Speaking to the national media, Bulgarian National Bank Governor Dimitar Radev dismissed fears that joining the euro would result in tax hikes. Radev also pointed out that the fact the Bulgarian lev was already tied to the euro meant the central bank had “more limited options to control inflation.”
Polling shows joining the euro is unpopular among the general Bulgarian public despite the posturing of the country’s europhile ruling class.
Bulgarian politics has been at an impasse since 2022 as a series of fragmented political parties failed to cobble together a working majority in parliament, resulting in another round of snap elections scheduled for early June.
This is the sixth national election in less than three years in Bulgaria, with pro-EU news sources already sounding the alarm at the potential of the Russophile Renaissance Party tilting Sofia into taking a more anti-NATO stance.
Whether Bulgaria meets ECB inflation targets for June will define whether the deadline for euro zone membership is kicked into the long grass once again. The national economy has been affected by energy sanctions against Moscow, and there are reports that Sofia is becoming a hotspot for dodging European Commission-mandated sanctions.
The ECB responded to inquiries from The European Conservative stating that the decision to admit Bulgaria would ultimately be taken by member states and that it was in regular liaison with finance ministers around the euro zone on the matter.
