Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for Bulgaria
Date: 2025-06-30
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Bulgaria, Euro Group (euro area), conversion rate, euro, national currency, participating country (euro area)

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   EUROPEAN COMMISSION  Brussels, 30.6.2025  COM(2025) 372 final/2        DOWNGRADED ON 9.7.2025 2025/0197 (NLE)  Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for Bulgaria  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  4 June  2025,  the  Commission  adopted  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  concluded  that  Bulgaria  fulfils  the  necessary 
conditions  for  the  adoption  of  the  euro  and  that  Bulgaria’s  derogation  should  be 
abrogated with effect from 1 January 2026. 

If  it  is  decided  to  abrogate  the  derogation,  the  Council  will  subsequently  have  to 
adopt  the  conversion  rate  between  the  euro  and  the  Bulgarian  lev,  which  will  take 
effect from 1 January 2026. 

Council Regulation (EC) No 2866/98 on the conversion rates between the euro and 
the  currencies  of  the  Member  States  adopting  the  euro (1)  sets  the  irrevocable 
conversion  rates  for  the  20  Member  States  currently  participating  in  the  euro 
(Belgium, Germany, Estonia, Greece, Spain, France, Croatia, Ireland, Italy, Cyprus, 
Latvia,  Lithuania,  Luxembourg,  Malta,  Netherlands,  Austria,  Portugal,  Slovenia, 
Slovakia  and  Finland).  In  order  to  extend  the  scope  of  this  Regulation  to  the 
Bulgarian lev, a reference to this currency needs to be added to this Regulation. That 
is the object of this proposal. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  AND  IMPACT 
ASSESSMENT 

Discussions  with  Member States on economic policy  matters  in  Member States  are 
held on a regular basis in the Economic and Financial Committee (EFC), the Council 
of the EU (ECOFIN)  and Eurogroup. These include informal discussions  on issues 
specifically related to the preparation of a country’s prospective entry into the euro 
area (including exchange rate policies). 

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

(including 

forecasts, 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The legal basis for the present proposal is Article 140(3) TFEU, according to which 
the  Council  adopts  the  conversion  rate  at  which  the  euro  is  substituted  for  the 
currency of the Member State adopting the euro. 

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

(1) 

OJ L 359, 31.12.1998, p. 1. 

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3.2. 

Subsidiarity and proportionality 

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

The  proposal  does  not  go  beyond  what  is  necessary  to  achieve  its  objective  and 
therefore complies with the proportionality principle. 

3.3. 

Choice of legal instrument 

A regulation  is  the  appropriate legal  instrument  to  amend Council Regulation (EC) 
No 2866/98  on  the  conversion  rates  between  the  euro  and  the  currencies  of  the 
Member States adopting the euro. 

4. 

BUDGETARY IMPLICATIONS 

The proposal has no implications for the Union’s budget. 

5. 

COMMENTARY ON INDIVIDUAL ARTICLES 

5.1. 

Article 1 

The proposed rate is the present central rate of the Bulgarian lev in the exchange rate 
mechanism (ERM II). 

As for the other currencies, in accordance with Council Regulation (EC) No 1103/97 
on  certain  provisions  relating  to  the  introduction  of  the  euro (2),  the  rate  is 
determined to six significant figures. 

5.2. 

Article 2 

This  article  stipulates  that  the  Regulation  will  enter  into  force  on  1 January  2026, 
ensuring consistency with the timing of the other Council acts relating to Bulgaria’s 
adoption  of  the  euro,  including  the  date  when  the  derogation  is  abrogated  and  the 
date  of  entry  into  force  of  the  other  measures  necessary  for  the  introduction  of  the 
euro in Bulgaria. 

(2) 

OJ L 162, 19.6.1997, p. 1. 

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2025/0197 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for 
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) 

Council Regulation  (EC) No 2866/98 (4) determines  the conversion rates between the 
euro  and  the  currencies  of  the  Member  States  adopting  the  euro  as  from  1 January 
1999. 
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 on the Functioning of 
the European Union. 
Pursuant  to  Council Decision  (EU)  2025/[…] (6) regarding  the adoption  on 1 January 
2026 of the euro by Bulgaria, Bulgaria fulfils the necessary conditions for the adoption 
of  the  euro  and  the  derogation  of  Bulgaria  is  abrogated  with  effect  from  1 January 
2026. 

The introduction of the euro in  Bulgaria requires the adoption of the conversion rate 
between the euro and the Bulgarian lev. This conversion rate should be set at 1.95583 
lev per 1 euro, which corresponds to the current central rate of the lev in the exchange 
rate mechanism (ERM II). 

(5) 

Regulation (EC) No 2866/98 should therefore be amended accordingly, 

(3) 
(4) 

(5) 

(6) 

Opinion of [….] […] […]. 
Council Regulation (EC) No 2866/98 of 31 December 1998 on the conversion rates between the  euro 
and the currencies of the Member States adopting the euro (OJ L 359, 31.12.1998, 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/[…] of [……] on the adoption by Bulgaria of the euro on 1 January 2026. 
. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

In  Article 1  of  Regulation  (EC)  No 2866/98,  the  following  line  is  inserted  between  the 
conversion rates applicable to the Belgian franc and the German mark: 

‘= 1.95583 Bulgarian lev’. 

Article 2 

This Regulation shall enter into force on 1 January 2026. 

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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