European Council recommends Bulgaria adopt the euro from 1 January 2026

The European Council announced a decision to recommend that Bulgaria join the euro area as its 21st member, targeting euro adoption from 1 January 2026. The recommendation follows convergence reports from the European Commission and the European Central Bank, with the Council concurring that Bulgaria meets the criteria to introduce the euro. A draft recommendation was prepared in the Eurogroup to feed into upcoming Economic and Financial Affairs Council discussions. Ministers also held two exchanges with the International Monetary Fund on euro area policies and financial sector issues linked to the IMF’s ongoing Financial Sector Assessment Program work, and discussed fiscal priorities including 2025 budgets and medium-term plans, touching on Belgium’s and Austria’s recent draft budget plans. Other agenda items included how to mobilise resources for European security while maintaining fiscal rules, steps to remove barriers in the EU Single Market, and the digital euro, where ministers noted continued political backing as European Central Bank technical work and co-legislators’ deliberations on the legal framework progress, while flagging outstanding issues requiring intensified coordination. Next steps include the Economic and Financial Affairs Council discussion of the Bulgaria recommendation, a return to euro area fiscal coordination at the next meeting ahead of 2026 budget preparations, and the Eurogroup presidency election process, for which the call for candidates has been launched ahead of the 7 July meeting, with the current term ending on 12 July.