Countdown Begins: Bulgaria Faces Five-Month Challenge to Meet Eurozone Entry Criteria

Bulgaria is on a tight five-month deadline to fulfill the prerequisites necessary to join the eurozone by January 2025, revealed Deputy Minister of Finance Ivaylo Yajdjiev on January 19. The primary criteria involve lowering the inflation rate and adopting the BNB law to align Bulgaria's central bank with European standards.

As of December, the average inflation rate in the eurozone was below 3%, while Bulgaria reported 5%. The country must align its inflation with the three nations boasting the lowest indicators. A convergence report by Brussels, based on May data, will be released in June.

Despite not fully meeting the criteria, Croatia was granted a concession for joining the euro area, leaving it to rapporteurs to decide if Bulgaria might receive a similar allowance.

Bulgaria satisfies other Maastricht criteria, including debt levels and interest rates. The Bulgarian National Bank has initiated the search for suitable locations to store the withdrawn Bulgarian currency after it exits circulation.