Euro convergence criteria

Mounting uncertainty looms over Bulgaria's anticipated entry into the Eurozone, with officials cautioning that the prospect may be delayed amidst persisting inflation challenges.

The Harmonized Index of Consumer Prices (HICP) in Cyprus rose by 2.1% between February 2023 and February 2024, according to data published by the Statistical Service of Cyprus (CyStat) on Friday. 

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.

Prime Minister Acad. Nikolai Denkov, during discussions with Eurogroup President Paschal Donohoe at the World Economic Forum in Davos, unveiled Bulgaria's ambitious goal of becoming a member of the euro area by January 1, 2025.

During a parliamentary question time, Prime Minister Nikolai Denkov declared that Bulgaria's target for joining the euro area is set for January 1, 2025. Denkov emphasized the adherence to the Maastricht criteria, integral to EU treaties, as a crucial aspect of the process.

The international rating agency Fitch confirmed the long-term credit rating of Bulgaria in foreign and local currency 'BBB' with a positive outlook.

Bulgaria meets three of the four economic convergence criteria needed to join the Eurozone.

This is stated in a report released yesterday by the European Commission.

The criteria that our country fulfills are for stable and sustainable public finances, stability of exchange rates and long-term interest rates.

 Boyko Borissov's outgoing government is preparing to leave a heavy legacy. Instead of the deficit of BGN 4.9 billion planned in the State Budget Act, at the end of 2021 the treasury will be in the red by nearly BGN 7 billion, or 5.6% of GDP.

 This is written in the Convergence Program of Bulgaria for the period 2021-2023.

The European Commission has presented a report on the progress of non-Eurozone countries towards the adoption of the euro.   EC Vice President Valdis Dombrovskis said there was encouraging progress in some countries.

The low per-capita income on average represents the biggest issue regarding Romania's real convergence in view of joining the Eurozone (EZ), however, it's not a a formal criterion for euro accession, experts with the European Central Bank (ECB) believe.