Speech by Valdis Dombrovskis, Commissioner for Economy and Productivity, Performance and Simplification, after the Council meeting in Brussels:
Congratulations to Bulgaria on becoming the 21st member of the eurozone. The Eurozone is stronger with Bulgaria's accession, and Bulgaria is becoming stronger as a member of the eurozone. I would like to congratulate Minister Petkova and the Bulgarian government in particular for managing this process well to its ultimate success.
Today, an important symbolic step was taken for Bulgaria to join the euro area, but let us not forget the practical benefits.
Joining the euro removes uncertainty about future policy, strengthens external credit ratings and helps to stabilize and lower interest rates. This helps to encourage foreign and domestic investment, leading to higher economic growth and more jobs. An additional positive effect on growth is brought by full integration into the EU single market, where goods and services produced in Bulgaria will become more competitive. In the longer term, the euro leads to more stable prices and increases the resilience of the economy to sudden shocks.
Secondly, I will focus on the next steps in the process of transition to the euro. Preparations are clearly in full swing. No effort is being spared to ensure a successful transition to the euro. The European Commission is in contact with stakeholders from the public and private sectors involved in the practical preparations. We are providing the necessary technical assistance in a wide range of areas.
Thirdly, I will say a few words about the need for Bulgaria to press ahead with reforms.
After 1 January 2026, discipline and momentum for positive reforms must be maintained. Only in this way will the benefits of euro area membership be strengthened and increased.
Finally, I am aware of the concerns of some Bulgarian citizens that joining the euro could lead to higher prices. I would like to reassure them now on this issue. We have solid data going back in time, including the recent experience of Croatia in 2023. These data confirm that the upward effect of the euro on prices is minimal in the short term, while the impact on prices is actually stabilising in the long term.
I can also speak from personal experience as a Latvian – we have been through this process and now Latvia is benefiting from eurozone membership, and the people of Latvia recognise these benefits.
So, with that, I would like to once again congratulate Bulgaria on this historic day. This is the culmination of a long journey, but also the beginning of another – with your eurozone membership, you are embarking on a path of greater stability, security and prosperity.