07.05.2024

On 2 May 2024, the Governing Council of the European Central Bank adopted an opinion expressing a positive assessment of the draft Law on the Introduction of the Euro in the Republic of Bulgaria. The European Central Bank welcomes the aim of the draft law to create conditions for a smooth transition to the euro in Bulgaria and for the timely implementation of the necessary measures in this respect.

The opinion notes the general legal provisions relevant to the regulation of using the euro, namely the exclusive competence of the Union in the field of the monetary policy of the Member States whose currency is the euro and the application of a legislative technique which avoids reproducing provisions of Union law which are directly applicable.

The ECB welcomes the provisions in the draft law according to which the exchange of banknotes and coins from BGN into EUR by the BNB should be free of charge, in an unlimited quantity and without any time limit.

The opinion takes account of the approach proposed in the draft law to ensure a neutral transition to the euro, whereby, in addition to the general rules on currency conversion and rounding, special more favourable rules are introduced for the rounding of certain values, such as wages, benefits, cash and social benefits and pensions. Special rounding rules are also introduced in some of the amendments to other national laws provided for in the draft law which aim to fully transpose the relevant euro values as set out in the Union directives and regulations.

The ECB also notes the approach of explicit statutory provisions provided for in the draft law to ensure the impossibility for any unfavourable change in the interest rates on deposits and credit agreements, thereby ensuring consumer protection.

In its opinion the ECB makes some specific technical notes relating to the drafting of specific texts of the draft law in order to fully comply with the relevant European provisions to which they refer.