BRUSSELS (Reuters) – Bulgaria could join the euro zone and become the bloc’s 21st member on January 1, 2026, if it gets the green light from the European Commission and the European Central Bank in 2025.
European Union countries wishing to adopt the single currency must meet criteria in four areas: inflation, public finances, the exchange rate and the cost of long-term borrowing.
INFLATION
* Inflation in the candidate country must be close to that in the three best-performing EU member states for a period of one year before the country’s bid is examined. The upper limit for inflation is calculated as the average of the three best-performing countries, plus 1.5 percentage points.
DEFICIT/DEBT
*A country’s budget deficit must remain sustainably below the European Union limit of 3 percent of gross domestic product (GDP).
EXCHANGE RATE
* The currency of a candidate country must remain relatively stable against the euro for two years, in what is called the Exchange Rate Mechanism (ERM-2). The currency may increase in value, but should not devalue significantly.
LONG TERM LOAN COSTS
* The yields on long-term government bonds issued by the candidate country may not be more than 2 percentage points above the average of the three European Union countries with the lowest inflation, which were used to determine the price stability criterion.
