Before the Final Vote on Bulgaria’s Eurozone Accession - Will There Be Any Surprises?

Ministers of the euro area countries on July 7 discuss the European Commission's proposal to fix the exchange rate of the Bulgarian lev to the euro. The rate is expected to remain unchanged from its current level. A final decision—both on the rate and on Bulgaria’s accession to the eurozone—is scheduled to be made tomorrow by the EU finance ministers.

No surprises are expected during tomorrow’s vote. A senior EU official stated today that the vote is largely a formality, as all member states have agreed to Bulgaria’s adoption of the euro starting January 1 of next year. Prior to the vote in Brussels, the European Parliament must also give its opinion, which is expected around noon during a plenary session in Strasbourg.

Following that, EU finance ministers will vote on three legislative acts concerning the introduction of the euro, one of which is the regulation to fix the exchange rate. The lev-to-euro rate will remain unchanged. After the vote, Denmark’s presidency of the EU Council has organized an official ceremony to mark Bulgaria’s entry into the eurozone. The event will be attended by European Commissioner for Economy Valdis Dombrovskis, Eurogroup President Paschal Donohoe, ECB Vice-President Luis de Guindos, and Bulgaria’s Finance Minister Temenuzhka Petkova.

Petkova is already in Brussels and took part in today’s Eurogroup meeting. Meanwhile, the European Commission has welcomed Bulgaria’s upcoming accession with a banner reading, “Welcome to the Euro, Bulgaria”