BRUSSELS (Reuters) – Bulgaria would possibly enter the euro zone and grow to be the bloc’s twenty first member on January 1, 2026, if it receives a inexperienced mild from the European Fee and the European Central Financial institution in 2025.
European Union nations aspiring to undertake the only foreign money want to satisfy standards in 4 areas: inflation, public funds, the trade charge and long-term borrowing prices.
INFLATION
* Inflation within the candidate nation must be near that within the three finest performing EU members for a interval of 1 12 months earlier than examination of the nation’s bid. The higher restrict for inflation is calculated as the typical of the three finest performers, plus 1.5 proportion level.
DEFICIT/DEBT
* A rustic’s funds deficit have to be beneath the European Union’s restrict of three p.c of gross home product (GDP) in a sustainable approach.
EXCHANGE RATE
* A candidate nation’s foreign money should stay comparatively secure towards the euro over two years, in what is named the Alternate Charge Mechanism (ERM-2). The foreign money can recognize, however mustn’t devalue in a big approach.
LONG-TERM BORROWING COSTS
* Yields on long-term authorities bonds issued by the candidate nation shouldn’t be greater than 2 proportion factors above the typical of the three European Union nations with the bottom inflation, which had been used for setting the value stability criterion.