The European Central Bank (ECB) announced, on Friday 10 May, the adoption of an opinion on a draft law designed to prepare Bulgaria for the adoption of the euro. In particular, the draft law contains elements specifying the basic principles governing the changeover to the euro, as well as rules relating, in particular, to the conversion and rounding of monetary values from lev to euro and the dual display of prices.
The draft law also covers the supply and exchange of euro banknotes and coins, the dual circulation of the lev and the euro, the adaptation of information systems, the supervision of the implementation of the single currency and the monitoring of compliance with the rules.
At the outset, the ECB welcomes the aim of the Bulgarian draft law to facilitate a smooth changeover to the euro. It also welcomes Bulgaria’s provision for the exchange of unlimited quantities of lev banknotes and coins for euros, free of charge, for an unlimited period. However, it makes a number of general and specific observations.
Thus, in general terms, it recalls the exclusive competence of the EU in monetary policy for the countries of the euro area, but also the room for manoeuvre of the Member States to adopt, in the exercise of their own competence, provisions relating to the use of the euro.
The ECB also notes that certain provisions of the draft law reiterate provisions of EU law, using the same or slightly different language. While understanding Bulgaria’s concern to facilitate the application of these provisions, the ECB urges Bulgaria to avoid such repetitions, which could lead to legal confusion.
More specific observations concern, among other things, the amendment of other national laws, the new interest rate applicable to variable-rate credit agreements and certain derogations from the rounding rules.
On 15 March, Paschal Donohoe, President of the Eurogroup, sent out a political signal by expressing his confidence that Bulgaria would join the euro area, which had already been postponed, by January 2025 (see EUROPE 13372/10).
However, the political crisis in Bulgaria has still not stabilised and the convergence criterion on inflation has not yet been met. Many observers believe that accession to the euro area could once again be delayed.
For further information: https://aeur.eu/f/c7d (Original version in French by Émilie Vanderhulst)