In all likelihood, the European currency will be adopted in Bulgaria as legal tender at the beginning of 2026, as postponing it for just a few months, i.e. until later in 2025, would make it difficult for the business in the country. Optimally, the changeover to the euro should take place at the beginning, not in the middle of the calendar and financial year.

Although there is still no formal postponement of the date for Bulgaria's entry into the euro area, the Governor of the Bulgarian National Bank, Dimitar Radev, confirmed the view that the economy in Bulgaria at this stage does not meet the inflation requirements of the EU, as well as the understanding that the introduction of the euro should happen at a later stage - in 2025.

Nevertheless, during its meeting on 26.06.2024, the government approved the draft Law for the introduction of the euro in Bulgaria. The next step in the process for its final adoption is to send it to the Parliament, where it will be voted on by the MPs.

It is not yet fully clear what the procedure for the changeover to the European currency will be, as the draft is expected to undergo relevant amendments during its consideration in the National Assembly. However, the basic mechanisms for this transition are unlikely to undergo significant changes, where Penkov, Markov & Partners has commented on the draft in a separate paper published earlier this year - https://penkov-markov.eu/en/legal-digest/draft-law-on-the-introduction-of-the-euro-in-the-republic-of-bulgaria-has-been-published.