Why in news?
- The European Union Council has allowed Bulgaria to adopt the Euro currency from January 1, 2026.
- With this, Bulgaria will become the 21st member of the Eurozone.

What is the Eurozone?
- The Eurozone is a group of countries that adopt the Euro as their official currency despite being members of the European Union (EU).
- Currently it includes 20 countries. With the inclusion of Bulgaria, this number will become 21.
Process of Bulgaria adopting the euro:
Bulgaria has fulfilled the "Maastricht criteria" required for euro adoption:
- Inflation control: 2.7% on average (limit 2.8%)
- Budget deficit: below 3%
- Public debt: less than 60% of GDP
- Long-term interest rate control
- Currency stability: successful participation in ERM-II (from 2020)
Formal approval:
- 4 June 2025: The European Commission and the European Central Bank (ECB) report declare Bulgaria 'ready'.
- 8 July 2025: The European Parliament and the Council pass the final legislative proposal.
What happens now?
- Bulgaria's current currency "lev" will be replaced at the fixed exchange rate of 1 euro = 1.95583 lev.
- From 1 January 2026 all transactions will be in euros.
About Bulgaria:
- Bulgaria is a Balkan country located in southeastern Europe whose capital is Sofia.
- Its current currency is the Lev, which will be replaced by the Euro from 1 January 2026.
- It is a member of the European Union (EU) and NATO.
- It borders Romania, North Macedonia, Serbia, Greece, Turkey, and the Black Sea.
European Union (EU):
- The European Union (EU) is a political and economic union consisting of 27 European countries.
- They work together with the aim of promoting mutual cooperation, peace, economic unity, and global influence.
- Beginning: In an effort to maintain peace after World War II.
- Formal establishment: In 1993 through the Maastricht Treaty.
- Previously called the European Economic Community (EEC).
- Headquarters: Brussels, Belgium
- Main objectives:
- To promote economic integration and creation of a single market
- To promote peace, stability and security
- To ensure free trade, movement, services and flow of capital among member countries
- To adopt a common currency (Euro) (not compulsory in all countries)
- Members: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
Q. How many member countries will be there in the Eurozone after Bulgaria joins?
(a) 20
(b) 21
(c) 22
(d) 27
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