27.05.2022

 “At its meeting today the government adopted the Plan for the Introduction of the Euro in the Republic of Bulgaria. This is an operational plan that sets out clear deadlines and tasks to banks, payment and state institutions how exactly the euro is to be introduced, how the currency conversion of deposits and loans is to be done so that we are technically prepared to adopt the euro on 1 January 2024.” Deputy Prime Minister and Minister of Finance Assen Vassilev said the above at a briefing at the Council of Ministers. A number of necessary legislative amendments have yet to be made, including a revision of the Bulgarian National Bank Law, he added. “The technical preparation needed to enable us to join the euro area on 1 January 2024 takes at least 18 months, so we don't have much time to postpone the operational work. There are a number of activities that banks, payment systems and state institutions must carry out in order to be ready to operate in euro. A number of laws have yet to be amended and the last legislative change will also include the final date for the adoption of the euro.”

From now on the work on the Plan will continue in Parliament, the broad public discussions will also be held during the process of Bulgaria’s accession to the euro area, Minister Vassilev pointed out. The Plan has been public since July 2021, the Deputy Prime Minister reminded. “Some of its main measures are related to consumer protection – 1 month after the date the EU Council takes the decision on the introduction of the euro in Bulgaria and 12 months after the accession of our country to the euro area the prices of the goods are to be published in both currencies in order to avoid any fraudulent commercial practices in currency conversion. For one month, traders will be able to have a dual till – in Bulgarian leva and in euro, so that they do not have to hold large stocks in both currencies. The exchange rate is fixed,” Assen Vassilev said.

The BNB and the Ministry of Finance are now working on the analysis of the effects from the introduction of the euro and it will be published once finalised, the Finance Minister said. The coalition agreement states that the euro has to be adopted as soon as possible and after a large-scale information campaign which will be based precisely on the analysis made, he reminded.

Bulgaria has de facto adopted the euro through the currency board arrangement because the lev is pegged to the euro, Vassilev added.

The document is published here.