Sofia’s newly formed government has reaffirmed Bulgaria’s dedication to joining the Eurozone by 2026, pledging fiscal responsibility to meet the stringent criteria for adoption of the euro. Prime Minister Rosen Zhelyazkov announced on Tuesday that the government’s 2025 budget will target a deficit of no more than 3% of GDP. This commitment addresses concerns about a potentially higher deficit, possibly reaching 7-8%, and is crucial for Bulgaria Euro ambitions. “The budget must enable the government to request a convergence report on the implementation of the criteria for eurozone membership,” stated the Prime Minister, emphasizing the importance of fiscal prudence in the pursuit of euro adoption.
Government’s Pledge and Budgetary Path to Euro Adoption
Prime Minister Zhelyazkov downplayed the need for drastic measures to achieve this fiscal target. “We will not propose exotic measures,” he assured, expressing optimism for cross-party support for the budget. He highlighted the shared national goal of Bulgaria meeting the necessary economic benchmarks for Eurozone entry, hoping this common objective would foster political consensus. The focus on maintaining a budget deficit within the Maastricht criteria underscores the government’s serious intent to progress towards Bulgaria euro adoption by the stated timeline.
Political Landscape and Coalition Dynamics Surrounding Bulgaria Euro Adoption
The current government in Sofia, inaugurated in early January, is a coalition supported by a diverse political spectrum. This includes the GERB party (part of the European People’s Party), the Bulgarian Socialist Party, the populist “There Is Such a People” party, and the MRF-DPS, representing the Turkish minority. While GERB and MRF-DPS are strong proponents of Eurozone membership, the socialists and populists within the coalition have previously voiced reservations, advocating for a delayed entry. Despite these differing viewpoints, a coalition agreement prioritizing euro adoption was signed by all four parties. However, the history of Bulgarian politics suggests that such agreements can be fragile, particularly when populist sentiments come into play regarding the Bulgaria euro transition.
Public Sentiment and Skepticism Towards Euro Adoption in Bulgaria
Public opinion surveys indicate a degree of skepticism among Bulgarians regarding the introduction of the euro. A Myara agency poll published on February 1st revealed that 41% of Bulgarians oppose adopting the euro. In contrast, 30.8% expressed acceptance of euro adoption after 2026, and only 25.7% favored immediate Eurozone entry. This public hesitancy presents an additional challenge for the government as it seeks to navigate the complexities of Bulgaria euro implementation.
Opposition’s Scrutiny and Conditional Support for Eurozone Plan
The pro-European opposition coalition, We Continue the Change – Democratic Bulgaria (PP-DB), has been critical of the government’s financial management. They previously accused GERB leader Boyko Borisov of manipulating budget data, suggesting an attempt to undermine the euro adoption process. Borissov has publicly argued that the new government inherited significant financial challenges and a substantial budget deficit. Exceeding the 3% GDP deficit threshold could indeed jeopardize Bulgaria’s path to the Eurozone. However, Prime Minister Zhelyazkov’s commitment to the 3% deficit target has been met with a degree of cautious optimism from the opposition. Former Prime Minister Kiril Petkov of PP-DB stated, “A budget with a 3% deficit and entry into the Eurozone on 1 January 2026 is our priority. If Rosen Zhelyazkov works to achieve this goal, he will have our support for these specific steps.” This conditional support from the opposition underscores the critical importance of fiscal discipline for Bulgaria to realize its ambition of Bulgaria euro adoption in 2026.
