Did you know that… In 2015, with the signature of Boyko Borisov (then Prime Minister), a COORDINATION COUNCIL FOR THE PREPARATION OF THE REPUBLIC OF BULGARIA FOR MEMBERSHIP IN THE EUROZONE was established in Bulgaria under the Council of Ministers. This is the structure that must work at an interdepartmental level in order to synchronize state institutions on the path to the introduction of the euro as the official currency in Bulgaria. The horizon is January 1, 2025. And so every subsequent Prime Minister after Boyko Borisov continues the work of this committee, because the euro is a goal for the Republic of Bulgaria.
What does this committee do?
According to the regulations, which have been approved and published on the Council of Ministers website, it:
1. Organizes and coordinates the practical preparation of the Republic of Bulgaria for membership in the eurozone, with an indicative date for membership in the eurozone of January 1, 2025 (note: the date is obviously only an example, because it is already June 2025)
2. Approves documents, activities and initiatives related to the preparation for joining the eurozone
3. Monitors the implementation of the National Plan for the Introduction of the Euro in the Republic of Bulgaria, and if necessary develops and proposes for adoption by the Council of Ministers its update
4. In connection with the activities for preparing for the adoption of the euro, aimed at improving and increasing the effectiveness of supervision over participants in the financial markets, the Council consults with the Financial Stability Advisory Council under Chapter Ten of the Law on the Financial Supervision Commission
5. Leads, organizes and coordinates the work of the expert working groups
6. Proposes measures for financial security, for strengthening administrative capacity, for implementing logistical and information and communication activities, as well as other measures necessary for the preparation for the introduction of the euro in the Republic of Bulgaria
7. Performs other tasks in connection with the preparation for accession to the eurozone
In general, the topic of “implementation of logistical and information and communication activities“ is also included in documents from earlier years, although “communication activities“ have not been implemented, but this is somewhat understandable, since the exact date of the adoption of the euro was not clear. We have a horizon, but not a date. So “implementation of logistical and information and communication activities“ can be accepted as an implementation measure, once we have a date.
This Coordination Council for the Preparation of the Republic of Bulgaria for Membership in the Eurozone includes ministers, representatives of the services, representatives of the BNB, etc. (see photo)
It is interesting to note that on the MC website, the latest information, although not active, to familiarize one with the work of the individual working groups, is dated March 31, 2021.
How close were we to the euro in 2022
In FACTS we have a document from 2022 (b.r. - so we are more up-to-date than the Council of Ministers page), which is from July 25, 2022. At that time, the Minister of Finance was Asen Vassilev, and the cabinet of Kiril Petkov (b.r. - fell from power in August 2022) was in power.
This document, signed by Asen Vassilev and the Governor of the Bulgarian National Bank Dimitar Radev, reads as follows.
In item two of the agenda - operational aspects of the preparation of the Republic of Bulgaria for membership in the euro area and preparation of the Action Plan to the National Plan for the Introduction of the Euro and follow-up actions, it is RESOLVED:
- The Working Groups to the Coordination Council, which have not yet submitted information within their competence, to send to the Secretariat of the Council a completed “Action Plan” CHO competence by the end of July 2022;
- The competent departments to provide the funds necessary for the implementation of the measures within their competence, set out in the “Action Plan”, in the context of the second stage of the budget procedure for 2023. The Ministry of Finance will include guidelines in the instructions for the preparation and presentation of the budget forecasts of the PRB with information on the progress of its activities, as well as topics that should be discussed at the Coordination Council level. The first report is expected at the end of August 2022.
- To convene a meeting of “Communications”, at which the draft Communication Strategy and follow-up actions (b.r. – what communication campaign in 2022?)
- By the end of August, the WG "Public Administration" to identify and prepare a list of all public institutions and registers that process data CONTAINING FINANCIAL INFORMATION (such as the Registry Agency (commercial register), Central Depository AD, Central Register of Special Pledges, etc.), which should be adapted in view of the adoption of the euro
- The Ministry of e-Government to confirm officially and in the operational order of the Secretariat of the Coordination Council that it officially assumes the chairmanship of the WG "Public Administration"
- The Working Group "Macroeconomic Analyses and Public Finances" to receive input and develop a first version of the analysis by the end of July 2022, and the final analysis by the end of August 2022. Subsequently, the analysis will be reviewed and approved by the Coordination Council for the Preparation of the Republic of Bulgaria for Membership in the Eurozone.
- A working group responsible for the preparation of THE LAW ON THE INTRODUCTION OF THE EURO (Eurolaw) of the Republic of Bulgaria, should be formed as soon as possible, with a view to starting practical work on the project. Experts from non-governmental organizations and associations should be allowed to participate in the activities of the working group. For the purposes of the group, the departments should be required to identify the need for legislative changes in the areas of their competence in an operational manner.
It is interesting to note what the contribution is and which organizations from the non-governmental sector have been invited to participate in the work of this Coordination Center as of 2022 and to date… None of the authorities in our country have mentioned that the adoption of the euro has been discussed with various NGOs… Actually, whether and why this should be done… Just a thought, but anyway.
So the “Coordination Council for the Preparation of the Republic of Bulgaria for Membership in the Eurozone is working. It is interesting how the Coordination Council is interested in “… preparing a list of all public institutions and registers that process data containing financial information“ and is preparing to conduct an information campaign starting in 2022.
Now we are almost at the final stage of adopting the euro. According to a decision of the 48th National Assembly of the Republic of Bulgaria, adopted on October 27, 2022 (ed. - we are back in 2022), the Republic of Bulgaria will introduce the euro as its official currency while maintaining the central exchange rate of 1.95583 leva for 1 euro. The exchange rate was also confirmed by a decision of the 50th National Assembly of the Republic of Bulgaria, adopted on July 26, 2024.
The process of adopting the euro will become irreversible on July 8, when the parliaments of the “Eurogroup” countries will vote on the legislative decisions for Bulgaria's accession to the eurozone. Then we will know for sure that from January 1, 2026, we will start paying in euros, and the lev will be part of the financial history of the Republic of Bulgaria.
Of course, we will continue to monitor the work of the Coordination Council, but for this purpose, someone needs to at least update the information on the Council of Ministers website so that it is not dated March 31, 2021.