The eurozone welcomes a new member. Its incorporation in 2026 will provide a boost to regional trade, investment and financial stability, generating unprecedented opportunities for businesses and citizens. But what does this accession really mean for all Europeans and what effects will it have on us on a daily basis?
Leaving behind decades of clean currency, Bulgaria will be the country that joins the Eurozone in 2026, becoming the 21st member. The country, which has been part of the European Union since 2007, is thus taking a key step towards its full integration into the European bloc. Accession was formally approved on July 8, confirming an exchange rate of 1.95583 levs per euro, a mechanism that aims to minimize any excessive exchange rate volatility following its adoption.
This long-awaited transition comes after years of reforms and economic adjustments which have enabled the country to meet official convergence criteria: an annual inflation rate below 2.8%, up to 1.5 percentage points above average of the three eurozone countries with the lowest inflation, in addition to keeping producer prices under control.
The Bulgarian economy has demonstrated resilience in the face of recent global crises and maintains strong public finances. Membership of the euro will reduce transaction costs, facilitate trade and attract investment, thereby consolidating its position in Europe.
However, among the 6.7 million inhabitants, a certain skepticism persists: a part of the populationeme a possible inflationary effect and the reduction in purchasing powerand doubts that membership will significantly improve its economic prospects.
What is the impact of Bulgaria’s entry into the eurozone?
For the rest of Europe, the incorporation of Bulgaria strengthens the cohesion of the eurozone and increases regional financial stability. Surveys show that 71% of the population of eurozone countries perceive the single currency as beneficial for their countrywhile 79% appreciate it positively for the European Union, support which has continued to grow since 2007.
Furthermore, the incorporation will not only have an impact on the national economy, but encourages the entry of Bulgarian entities into the Spanish banking products market. This possible landing would add competition and add new offers to the war for savings, which, in turn, could raise the level of conditions promoted, having a positive impact on savers’ options.
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