Bulgaria one step away from the Eurozone: economic success and prospects of the country in 2025.

Bulgaria is in the final phase of preparations for joining the Eurozone. The country meets all the necessary criteria, including low inflation, a sustainable budget deficit and a minimal debt-to-GDP ratio. If the current dynamics are maintained, Bulgaria will become part of the Eurozone in the coming years, opening new horizons for its economy and citizens. This will happen in 2025. or the beginning of 2026, the exact date has not been determined, will be approved by a decision of the Council of the EU.

Eurostat data show that Bulgaria's macroeconomic indicators are in line with the requirements for adopting the euro. Bulgaria fully meets the criteria for the euro, inflation and the budget deficit are below 3%.

Bulgaria demonstrates sustainable compliance with the Maastricht criteria, which confirms the country's readiness to join the Eurozone.

Inflation: a key indicator of stability

In the second half of 2024 Inflation in Bulgaria fell below the important level of 3%, which was set as one of the conditions for adopting the euro. In June and July, this figure was 2.8%, and by September it had fallen to 1.5%. In October and November, inflation stabilized at 2%.

For comparison in November 2023. inflation is 5.5%. Such a significant reduction shows the effectiveness of economic measures aimed at combating inflationary processes.

Budget deficit and debt to GDP

Another important criterion for joining the Eurozone is the budget deficit, which should not exceed 3%. Bulgaria also meets this condition by demonstrating responsible budget management.

In addition, the country's debt-to-GDP ratio is approximately 24.5%, which is almost half of the permissible limit of 60%. This emphasizes the stability of the Bulgarian financial system.

Unemployment rate

The national economy is characterized by historically low unemployment rates of around 4%. It is one of the most important factors affecting the economic stability and social well-being of citizens.

Forecasts for the coming years

The National Assembly adopted in the second and final reading the bill for the introduction of the euro, as well as the amendments to the Law on Credit Institutions related thereto, Sofia Globe reports.

The European Commission predicts further improvement of Bulgaria's economic performance. Inflation is expected to ease to 2.3% in 2025. and up to 2.8% in 2026. The budget deficit is projected to remain within 2.8% in 2025, in line with the Eurozone's requirements.

With the switch to the euro, the exchange rate should remain at the same level – BGN 1.96. for euro.
This will be an important step for the country, strengthening its position in the European Union and providing new opportunities for economic development.

What will the entry into the Eurozone bring to Bulgaria?

Joining the Eurozone will open many advantages for Bulgaria:

• Simplifying international trade through the use of a single currency.
• Reduction of currency risks for business.
• Access to a more stable EU financial system.
• Increasing the confidence of foreign investors.

In addition, joining the Eurozone will contribute to strengthening the economic integration of Bulgaria with the rest of the EU countries, which will create additional incentives for economic growth and development.