site.btaUPDATED EU Commissioner Dombrovskis: Euro Adoption Will Bring Tangible Benefits to Bulgaria, but Fiscal Stability Must Be Preserved

In an interview with BTA, European Commissioner for Economy and Productivity Valdis Dombrovskis congratulated Bulgaria for its disciplined and consistent work in meeting the Maastricht criteria and said the country’s preparations for eurozone membership are proceeding according to plan.

He emphasized that adopting the euro will bring tangible benefits for citizens and businesses, eliminating currency exchange costs, facilitating cross-border payments, increasing price transparency, and improving access to finance.

Dombrovskis also highlighted the importance of maintaining Bulgaria’s prudent fiscal policy, pursued consistently since 1997, noting that this stability must be preserved and built upon after the euro’s introduction.

In the context of digital transformation, he said the digital euro will ensure citizens’ continuous access to public money in the digital age. The EU, he added, should build on its progress to achieve a common approach on the project by the end of the year under Denmark’s rotating presidency.

Following is the full text of the interview:

Mr. Dombrovskis, less than 2 months remain until the adoption of the euro in Bulgaria. How do you assess the preparation of this process and do you have any recommendations?

Bulgaria adopting the euro is a pivotal moment. At a time of growing division and global fragmentation, Bulgaria will, in less than 2 months, take another important step towards further integrating its economy and society into the core of the European project. Let me congratulate Bulgaria once again for all the hard work and discipline behind fulfilling the Maastricht criteria. I’m pleased to note that overall, the preparations of the Bulgarian authorities for the joining the euro area are well on track, according to your Changeover Plan and its timeline.

I am in Bulgaria to discuss details of the changeover with the Bulgarian authorities. I know that the government has put measures in place to ensure that the transition to the euro happens in a controlled, well organised and transparent manner. All Bulgarian citizens should be well-informed about the changeover process and of the practical changes that the euro will entail. This includes information related to the date of introduction, the display of prices in both the lev and euro, ATM cash withdrawals and the options to exchange lev in the months and years to come. I commend in particular the role that post offices will play to ensure the changeover in rural areas. It is a whole-of-society effort.

Bulgaria’s journey toward the euro has been one of steady progress based on hard and sustained work. It has already been beneficial to Bulgarians – these efforts making your country a better place to do business and live in. I am confident this will continue to be the case and that work will continue to bear fruit for generations to come.

How do you think the adoption of the euro will affect people and businesses immediately and in the long term?

Joining the euro area will bring tangible benefits to Bulgarian citizens and businesses: no more currency exchange costs, easier cross-border payments, increased price transparency, and better access to finance. It will also contribute to boosting trade, investment, and job creation, while granting Bulgaria a more prominent role within the euro area’s decision-making structures like the ECB and the Eurogroup. The euro will make it easier for Bulgarians to travel, as well as for tourists to enjoy Bulgaria’s hospitality and people. It will strengthen Bulgaria as an investment and travel destination - we see it clearly from Croatia’s example.

But the euro is more than just a currency. It is a powerful symbol of European integration, economic stability, and geopolitical strength. Let us not lose sight of the bigger picture: Bulgaria joining the euro area must be seen against the backdrop of the evolving nature of sovereignty and resilience in an increasingly multipolar and volatile world. Working through EU and euro area governance structures, Bulgaria can have more impact and raise its profile considerably. In addition, the country will become more resilient against external shocks - we have seen that the euro has protected countries bordering Russia against monetary turbulences.

How do you assess the fiscal position of Bulgaria and do you think any changes are necessary?

Let me first stress that Bulgaria has traditionally run sound fiscal policies – it has managed to do it since 1997. This has borne fruit in terms of macroeconomic stability and attracting foreign capital and know-how. Bulgaria’s currency board has helped in this regard. Now, it will be important to continue this good performance within the euro area and build on these achievements. This includes not losing the strong fiscal foundation that the country has. I trust that with the adoption of the euro Bulgaria will become more attractive to foreign investors. I have seen it in my own country Latvia, and we have seen it recently in Croatia. And investors will be also watching Bulgaria’s budget policies.

Looking beyond January 1, 2026, maintaining discipline and sustaining the momentum for positive reforms will reinforce and amplify the benefits that membership of the euro area provides. This is particularly true when it comes to improving the business environment, fighting corruption and investing in skills. Bulgaria has well-educated, well-skilled, and talented people, and an enabling environment will further unleash their potential. Europe is there to provide a helping hand with reform efforts Bulgaria needs, providing policy advice, technical assistance and, most importantly, funding to achieve these objectives. As a euro area country, the EU economic governance framework will continue to apply to Bulgaria - as it does to any other Member State.

At what stage is the process of introducing the digital euro and what is the position of the EC on the matter?

The European Commission's proposals on the establishment of the digital euro, as well as on the legal tender of euro banknotes and coins, put forward in June 2023, are currently under discussion in the Council and the Parliament. The digital euro will guarantee continued access to public money to euro area citizens in the digital age, preserving privacy in payments, creating a resilient European payment landscape and providing a platform for private digital payment solutions to thrive and innovate. Consumers will have a more exhaustive choice of payment means, including the ability to make digital euro payments offline, fostering digital and financial inclusion. The digital euro will reinforce the euro area’s strategic autonomy and resilience by reducing existing dependencies on external actors and providing the infrastructure to better react to crises.

Recently Member States made progress and reached an agreement on the institutional structure for setting holding limits. We must build on this to realize the Danish Presidency's ambition to reach a common approach in the Council by the end of the year.