The EC will monitor prices in Bulgaria after adopting the euro

The decision taken unanimously by the member states means that at the beginning of next year Bulgaria will become the 21st EU member state in the eurozone.

Dombrovskis addressed concerns about price increases following the introduction of the euro, saying it was an issue that needed monitoring, as some companies were using the currency change itself as an excuse to raise prices.

He added that with previous transfers to the eurozone (Croatia joined the eurozone in 2023), the impact of the currency change on inflation was very limited, ranging from 0.1 to 0.3 percent. "This is more than sustainable in the medium term, thanks to lower interest rates, lower exchange costs, greater price transparency," he said.

According to Dombrovskis, price monitoring should begin well in advance and continue after the introduction of the common currency. He noted that the finger can also be pointed at companies that use the euro change itself as a pretext to raise prices.

It also helps, he said, to "display prices twice before and after the changeover, so that citizens get used to euro prices." He added that it also pays to work with the business community on a fair changeover, so that companies do not use joining the eurozone as a pretext to increase prices.

To introduce the euro, a country must meet the so-called convergence criteria. Whether a country can adopt the common currency is decided by the member states based on an assessment by the European Commission. The EC assessed Bulgaria's efforts positively on 4 June.

The issue of Bulgaria's entry into the eurozone will be discussed by leaders of the member states at a summit next week in Brussels.

The finalization of the legal process of Bulgaria's entry into the eurozone will be completed with the adoption of three legal acts by the member states, which are to be adopted in July. This will enable Bulgaria to introduce the euro into circulation on 1 January 2026.

Apart from Bulgaria, six EU countries remain outside the eurozone: Poland, Sweden, the Czech Republic, Hungary, Romania and Denmark.

Finance Minister Andrzej Domański, who chaired a meeting of his counterparts in Luxembourg on Friday, told journalists that Poland is not working on joining the eurozone. In his opinion, this is an optimal state.

The condition for joining the eurozone is to meet four criteria (known as convergence criteria). These are: price stability (low inflation), stable public finances (budget deficit below 3% of GDP and public debt below 60% of GDP), exchange rate stability (participation in the so-called ERM II mechanism, the so-called eurozone waiting room, for at least two years without serious exchange rate disturbances) and convergence of long-term interest rates (the average nominal long-term interest rate may be higher by a maximum of 2 percentage points than the average interest rates in the three EU countries with the lowest inflation).

Dombrovskis responded to the Politico report in an article titled "Did Bulgaria manipulate inflation rates to qualify for the eurozone?" He suggests that Sofia deliberately lowered the prices of some public services to meet the required limits, including a more than 80 percent drop in hospital stay prices.

Dombrovskis replied that the Bulgarian authorities' actions in the reference period from May 2024 to April 2025 were more inflationary than disinflationary, as during that time the reduced VAT rate on bread, flour and restaurants was abolished, the 20% VAT rate was restored and excise duties on some goods were raised. "All these events were taken into account in our assessment, which led us to the conclusion that the inflation criteria were met," the commissioner stressed.

On July 10, 2020, Bulgaria joined the ERM II mechanism, which is called the "euro zone waiting room". Since then, the Bulgarian lev has been pegged to the euro.