Proposal for a COUNCIL REGULATION amending Regulation (EC) No 974/98 as regards the introduction of the euro in Bulgaria
Date: 2025-06-04
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Bulgaria, Economic and Monetary Union, Euro Group (euro area), economic convergence, euro, monetary union, participating country (euro area)

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   EUROPEAN COMMISSION  Brussels, 4.6.2025  COM(2025) 301 final/2     DOWNGRADED ON 4.6.2025 2025/0159 (NLE)  Proposal for a COUNCIL REGULATION amending Regulation (EC) No 974/98 as regards the introduction of the euro in Bulgaria  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  4 June  2025,  the  Commission  released  a  proposal  for  a  Council  Decision  in 
accordance  with  Article 140(2)  of  the  Treaty  on  the  Functioning  of  the  European 
Union  (the  TFEU).  The  proposal  indicates  that  Bulgaria  fulfils  the  necessary 
conditions  to  adopt  the  euro  and  that  the  derogation  of  Bulgaria  is  abrogated  with 
effect from 1 January 2026. 

In  the  event  of  a  positive  decision,  the  Council  will  subsequently  have  to  take  the 
other measures needed for introducing the euro in Bulgaria. 
Council Regulation  (EC) No 974/98  on the introduction of the euro (1)  governs the 
initial introduction of the euro in the first-wave euro-area Member States and Greece 
(2). That Regulation was amended by: 

– Regulation (EC) No 2169/2005, to prepare for future enlargements of the euro area 

–  Regulation  (EC)  No 1647/2006,  to  cover  Slovenia  (which  adopted  the  euro  on 
1 January 2007) 

–  Regulation  (EC)  No 835/2007,  to  cover  Cyprus  (which  adopted  the  euro  on 
1 January 2008) 

–  Regulation  (EC)  No 836/2007,  to  cover  Malta  (which  adopted  the  euro  on 
1 January 2008) 

–  Regulation  (EC)  No 693/2008,  to  cover  Slovakia  (which  adopted  the  euro  in 
January 2009) 

– Regulation (EU) No 670/2010, to cover Estonia (which adopted the euro in January 
2011) 

– Regulation (EU) No 678/2013, to cover Latvia (which adopted the euro in January 
2014) 

–  Regulation  (EU)  No 827/2014,  to  cover  Lithuania  (which  adopted  the  euro  in 
January 2015) 

–  Regulation  (EU)  No 2022/1207,  to  cover  Croatia  (which  adopted  the  euro  in 
January 2023). 

For Bulgaria  to also  be  covered by Regulation  (EC) No 974/98, a  reference to this 
Member  State  needs  to  be  added  to  that  Regulation.  This  proposal  contains  the 
necessary amendments to that Regulation. 

Bulgaria’s National Euro Changeover Plan specifies that the adoption of the euro as 
the currency of Bulgaria should coincide with the introduction of euro banknotes and 
coins in Bulgaria. 

(1) 
(2) 

OJ L 139, 11.5.1998, p. 1. 
Council Regulation (EC) No 2596/2000 of 27 November 2000 amending Council Regulation (EC) No 
974/98 on the introduction of the euro (OJ L 300, 29.11.2000, p. 2). 

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2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENT 

Discussions  with  Member  States  on  the  economic  policy  challenges  in  Member 
States  are  regularly  held  under  various  headings  in  the  Economic  and  Financial 
Committee  (EFC)  and  the  ECOFIN/Eurogroup.  These  include  informal  discussions 
on  issues  specifically  relevant  to  preparing  for  eventual  entry  into  the  euro  area 
(including exchange rate policies). 

Economic developments in the euro area and the Member States are assessed through 
the  various  procedures  of  economic  policy  coordination  and  surveillance 
(specifically  under  Article 121  TFEU),  and  as  part  of  the  Commission’s  regular 
monitoring  and analysis of country-specific and area-wide developments  (including 
forecasts, regular publication series, and input to the EFC and ECOFIN/Eurogroup). 
In  line  with  the  proportionality  principle  and  with  past  practice,  no  formal  impact 
assessment is needed. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The  legal  basis  for  this  proposal  is  Article 140(3)  TFEU,  which  allows  for  the 
adoption  of  the  other  measures  needed  for  introducing  the  euro  in  a  Member  State 
whose derogation has been abrogated under Article 140(2) TFEU. 

The Council shall act with the unanimity of those Member States whose currency is 
the euro and the Member State concerned, on a proposal from the Commission and 
after consulting the ECB. 

3.2. 

Subsidiarity and proportionality 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  Therefore,  the 
subsidiarity principle does not apply. 

This  initiative  does  not  go  beyond  what  is  needed  to  achieve  its  objective  and, 
therefore, complies with the proportionality principle. 

3.3. 

Choice of legal instrument 

A  Regulation  is  the  appropriate  legal  instrument  for  amending  Council  Regulation 
(EC) No 974/98 on the introduction of the euro. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implications for the budget of the Union. 

5. 

COMMENTARY ON INDIVIDUAL ARTICLES 

5.1. 

Article 1 

In  accordance  with  Article  1  lit.  (a)  and  with  Article  1a  of  Regulation  (EC)  No 
974/98,  the  table  in  the  Annex  to  that  Regulation  lists  the  participating  Member 
States  and  defines  the  euro  adoption  date,  the  cash  changeover  date,  and  the 
‘phasing-out’ period, if applicable, for all these Member States. 

According to Article 1 lit. (i) of Regulation (EC) No 974/98, a ‘phasing-out’ period 
can  only  apply  to  Member  States  where  the  euro  adoption  date  and  the  cash 
changeover  date  fall  on  the  same  day.  This  was  neither  the  case  for  the  eleven 

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Member  States  that  adopted  the  euro  on  1 January  1999,  nor  for  Greece,  which 
adopted the euro on 1 January 2001. 

The  dates  for  adopting  the  euro  and  the  cash  changeover  coincided  in  Slovenia, 
Cyprus, Malta, Slovakia, Estonia, Latvia, Lithuania and Croatia (1 January 2007 for 
Slovenia,  1 January  2008  for  Cyprus  and  Malta,  1 January  2009  for  Slovakia, 
1 January 2011 for Estonia, 1 January 2014 for Latvia, 1 January 2015 for Lithuania, 
1 January 2023 for Croatia). However, these countries chose not to have a ‘phasing-
out’ period. 

Bulgaria’s National Euro Changeover Plan  also sets the same date for the country's 
adoption of the euro and the cash changeover (1 January 2026), and Bulgaria chose 
not to have a ‘phasing-out’ period. 

This Article adds Bulgaria and the following relevant data for this Member State to 
the table in the Annex to Regulation (EC) No 974/98 in protocol order. 

Member State 

Euro adoption date 

Cash changeover date 

Member State with a 
‘phasing-out’ period 

‘Bulgaria 

1 January 2026 

1 January 2026 

No’ 

5.2. 

Article 2 

This  Article  sets  the  date  of  1 January  2026  for  the  entry  into  force  of  the  Regulation, 
ensuring  that  it  will  be  applicable  in  conformity  with  the  timing  of  the  other  Council  acts 
related to Bulgaria's adoption of the euro, i.e. the same date when the derogation is abrogated 
and when the conversion rate for the Bulgarian lev enters into force. 

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2025/0159 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 974/98 as regards the introduction of the euro in Bulgaria 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 140(3) thereof, 

Having regard to the proposal from the European Commission, 
Having regard to the opinion of the European Central Bank (3), 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Council Regulation (EC) No 974/98 (4) provides for the substitution of the euro for the 
currencies  of  the  Member  States  which  fulfilled  the  necessary  conditions  for  the 
adoption  of  the  euro  at  the  time  when  the  Community  entered  the  third  stage  of 
economic and monetary union. 
According  to  Article  5  of  the  2005  Act  of  Accession  (5),  Bulgaria  participates  in 
Economic  and  Monetary  Union  from  the  date  of  accession  as  Member  State  with  a 
derogation, within the meaning of Article 139(1) of the Treaty. 
Pursuant  to  Council  Decision  (EU)  2025/….  (6),  Bulgaria  fulfils  the  necessary 
conditions for the adoption of the euro and the derogation regarding Bulgaria is to be 
abrogated with effect from 1 January 2026. 

The  introduction  of  the  euro  in  Bulgaria  requires  the  extension  to  Bulgaria  of  the 
existing provisions on the introduction of the euro that are set out in Regulation (EC) 
No 974/98. 

Bulgaria  National  Euro  Changeover  Plan  specifies  that  euro  banknotes  and  coins 
should become legal tender in that Member State on the day of the introduction of the 
euro  as  its  currency.  Consequently,  the  euro  adoption  date  and  the  cash  changeover 
date should be 1 January 2026. No ‘phasing-out’ period should apply. 

(6) 

Regulation (EC) No 974/98 should therefore be amended accordingly, 

(3) 
(4) 

(5) 

(6) 

Opinion of […] […] […]. 
Council  Regulation  (EC)  No  974/98  of  3  May  1998  on  the  introduction  of  the  euro  (OJ  L  139, 
11.5.1998, p. 1). 
Act  concerning  the  conditions  of  accession  of  the  Republic  of  Bulgaria  and  Romania  and  the 
adjustments to the treaties on which the European Union is founded (OJ L 157, 21.6.2005, p. 203). 
Council Decision (EU) 2025/… on the adoption by Bulgaria of the euro on 1 January 2026. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

In the Annex to Regulation (EC) No 974/98, the following entry is inserted between the entry 
for Belgium and the entry for Germany: 

‘Bulgaria 

1 January 2026 

1 January 2026 

No’ 

This Regulation shall enter into force on 1 January 2026. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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