On 8 July 2025 the Council of the EU adopted decisions that paved the way for Bulgaria’s entry into the euro area from 1 January 2026. As was the case for previous euro area enlargements, the adoption of the euro will have a significant impact on the economic, monetary, social and political development of Bulgaria. This brief focuses on two key issues. First the process of the adoption of the euro by Bulgaria is described. This process has not differed significantly from previous accessions as it has required that Bulgaria meets the same Maastricht convergence criteria, it brings similar costs and benefits, and similar myths have circulated about it. However, several specific aspects will be explored with regard to this latest euro area enlargement. In 2018 Bulgaria was the first EU member state to apply to join the Banking Union through a close cooperation agreement with the European Central Bank. Bulgaria was also under a currency board arrangement pegged to the euro for the longest period of any country before joining the euro area. Finally, the adoption of the euro by Bulgaria faced strong political opposition and low public support in the country.

The second key issue analysed is how this euro adoption will shape the euro area and what influence it will have on the other EU member states that are still outside that area. The brief compares the situations of the six non–euro area members of the EU, describes the current process of euro area accession and provides a brief discussion on the possibility of holding referendums in those countries on joining the euro area.