BRUSSELS (Reuters) – Bulgaria might enter the euro zone and grow to be the bloc's twenty first member on Jan. 1, 2026, if it receives the inexperienced mild from the European Fee and the European Central Financial institution in 2025.
European Union nations aspiring to undertake the one forex should meet standards in 4 areas: inflation, public funds, the trade charge and long-term borrowing prices.
INFLATION
* Inflation within the candidate nation have to be near that of the three best-performing EU members for a interval of 1 12 months earlier than the nation's utility is taken into account. The inflation cap is calculated as the common of the three best-performing nations, elevated by 1.5 proportion factors.
DEFICIT/DEBT
*A rustic's price range deficit have to be under the European Union restrict of three p.c of gross home product (GDP) on a sustainable foundation.
EXCHANGE RATE
* A candidate nation's forex should stay comparatively steady towards the euro for 2 years, below the so-called trade charge mechanism (ERM-2). The forex can recognize, however should not devalue considerably.
LONG-TERM BORROWING COSTS
* Yields on long-term authorities bonds issued by the candidate nation should not exceed by greater than 2 proportion factors the common of the three European Union nations with the bottom inflation, which have been used for set the criterion of worth stability.
