Honourable Mister Prime Minister, Madame Minister, Madame Commissioner, ladies and gentlemen.
Thank you for welcoming me to Sofia.
It is a pleasure to be back, especially now when it is to mark a historic milestone for Bulgaria, for the euro area and the European Union.
Yesterday, the Commission published a convergence report which finds that Bulgaria now fulfils all the conditions for adopting the euro, namely:
- price stability,
- sound public finances,
- a stable exchange rate with the euro,
- and converging long term interest rates.
This report provides the basis for the European Commission's assessment that Bulgaria is ready to join the euro area as of 1 January 2026.
The Member States are now expected to take the final decisions on Bulgaria's euro adoption by mid-July.
Joining the euro area is a demanding, rules-based process.
It requires firm commitments and sustained efforts to ensure that all Member States can maintain economic stability and fully integrate.
Bulgaria's path towards joining the euro area has not always been easy.
Since joining ERM II and entering into close cooperation in the context of the Banking Union in 2020, Bulgaria and the rest of Europe have navigated a particularly challenging period.
This includes the COVID-19 pandemic, Russia's full-scale invasion of Ukraine, the energy crisis, and most recently, the heightened uncertainty stemming from US tariff announcements.
Despite all these challenges, Bulgaria has stayed the course.
It has continued to maintain the sound fundamentals of its economy.
It has maintained fiscal discipline and achieved sustained economic growth while keeping price levels and interest rates in line with the convergence criteria.
If we take a closer look at the figures, we see that Bulgaria's economic performance in recent years has been impressive.
Its public debt currently amounts to 24% of GDP, well below the euro area average of 89% of GDP.
The public deficit stands at 2.8% of GDP, broadly in line with the euro area average.
Inflation is also broadly in line with the euro area average.
This is an especially good performance for a country which is catching up with the rest of the EU, and where purchasing power is increasing much faster than elsewhere.
Economic growth is forecast at 2% this year and 2.1% in 2026, which is faster than the EU and euro area averages.
In fact, Bulgarian economic growth has been more than double that of the euro area since the country joined the EU in 2007.
This shows the benefits of convergence and membership in a strong and competitive union.
So, it is clear that Bulgaria and its people have undertaken remarkable efforts to join the euro area.
You should be very proud of this achievement.
But the work to enhance the dynamism and resilience of Bulgaria's economy should not stop now.
Looking beyond January 2026, it will be crucial to maintain fiscal discipline and sustain the momentum for positive reforms.
This will reinforce and amplify the benefits that membership of the euro area provides.
This is particularly true when it comes to maintaining sound public finances, improving the business environment, fighting corruption and investing in skills.
Europe is there to provide the necessary support in these efforts.
The EU will continue to provide policy advice, technical assistance and funding to ensure that the Bulgarian economy meets its potential and delivers for citizens.
The euro will provide practical benefits for Bulgarian citizens and businesses.
We have already seen the transformative impact that membership of the European Union has had since Bulgaria joined in 2007.
Now, joining the euro area will help to build on this progress.
It sends a very positive signal to investors.
It removes uncertainty about future policy, strengthens external credit ratings and helps to stabilise and lower interest rates.
In turn, this all helps to promote foreign and domestic investment, leading to higher economic growth and more jobs.
The euro also lowers barriers for businesses and removes currency exchange costs, opening new opportunities for trade.
And it brings a positive impact on growth thanks to full integration into the EU's single market.
In the longer run, the euro brings more stable prices and increases the resilience of the economy in the face of sudden shocks.
I have seen firsthand how the euro can act as a shield.
Not only for my country Latvia, but also the two other Baltic states – Lithuania and Estonia – given the geopolitical situation in the region and Russia's ongoing war of aggression against Ukraine.
Our savings are safe, the currency is stable and our countries have proven resilient in the face of consecutive economic shocks.
If I can speak directly to Bulgarian citizens learning of this news now for a moment:
The euro brings new opportunities, investment, jobs and growth.
That has been the experience of people across the euro area.
And it will also be the case here in Bulgaria.
Joining the euro area is the best investment Bulgaria can make in its future.
Bulgaria should now turn its attention to the practical preparations that will facilitate a smooth changeover to the euro on 1 January 2026.
This will be a nationwide effort, involving the government, private sector, banks, civil society, and people at large.
It is crucial that all Bulgarians are well-informed about the changeover process.
We all have an important role to play here.
Precise and reliable information should be clearly conveyed by trusted institutions to dispel any unfounded fears.
For instance, I am aware that some Bulgarian citizens fear that joining the euro area may result in higher prices.
Let me reassure you today.
We have strong historical data, including Croatia's recent experience in 2023, that confirms that the impact of the changeover on prices is minimal.
The European Commission stands ready to work closely with the Bulgarian authorities to assist in these practical preparations and provide ongoing technical assistance, as required, in the weeks and months ahead.
My visit to Bulgaria today is to explore how we can best help to drive this important work forward.
I am confident that we will succeed in ensuring a smooth euro changeover.
After all, this will be the 21st time we have done this.
To conclude, I am pleased that Bulgaria is close to the end of this long and demanding process.
I have been a strong and consistent advocate for Bulgaria joining the euro area.
I have been working closely together with the Bulgarian authorities since the years preparing for Bulgaria's entry to the Exchange Rate Mechanism II which then happened in 2020.
Throughout that time, I have gained a deep appreciation for the determination of the Bulgarian authorities to achieve this objective.
Now it is about to become a reality.
Joining the euro area is about much more than replacing the lev with the euro.
It is about building a brighter future for Bulgaria and its citizens at the heart of Europe.
On behalf of the European Commission, congratulations and I look forward to welcoming Bulgaria to the euro area.
Da zhivee Balgaria. Da zhivee obedinena Europa.
