Higher prices by euro. Brussels will look at inflation in Bulgaria

Dombrovskis referred to the fears of increasing prices after the introduction of the euro. He emphasized that it is a matter that requires monitoring, because some companies use the very change of currency as an excuse to raise prices.

He added that with previous transfers to Euroland (in 2023 she joined the euro area Croatia) Impact of currency change on inflation It was very limited and hesitated in the range from 0.1 to 0.3 percent.

– it is more than balanced in the medium period, thanks to the lower period rateslower currency exchange costs, greater price transparency – he said.

According to Dombrovskis, price monitoring should be started well in advance and continued after the introduction of the common currency.

As he noted, You can also indicate your finger at companies that use the very change of euro as an excuse to raise prices.

It also helps – as he said – “double display of prices before and after changing so that citizens get used to prices in euros.”

He added that it also pays to work with the business community over the fair change of currency so that companies do not use the entry into Euroland as an excuse to increase prices.

To introduce the euro, the state must meet the so -called convergence criteria. Member States decide whether a given country may adopt a common currency on the basis of the European Commission's assessment. The EC positively assessed the efforts Bulgaria June 4.

The issue of Bulgaria's entry into the euro area will be discussed by the leaders of the Member States at the summit next week in Brussels.

The finalization of the legal process of introducing Bulgaria into the euro area will end with the adoption of three legal acts by member states; They are to be adopted in July.

This will allow Bulgaria to introduce the euro into circulation on January 1, 2026.

In addition to Bulgaria, there are six EU countries outside the euro area: Poland, Sweden, The czech republic, HungaryRomania and Denmark.

Minister of Finance Andrzej Domański, who presided over the meeting of his counterparts on Friday in Luxembourg, in an interview with journalists announced that Poland did not work on by joining the euro area. In his opinion, this is an optimal state.

The condition for entering the euro area is the fulfillment of four criteria (called convergrance). It is about: price stability (low inflation), stable public finances (budget deficit below 3 percent GDP and public debt below 60 percent GDP), stability of the currency exchange rate (participation in the so -called ERM II mechanism, the so -called euro zone waiting rooms, for at least two years without serious exchange rate disorders) and the convergence of long -term interest rates (average nominal long -term interest rate can be higher with a maximum of 2 percent percentage points in three EU countries by the lowest inflation).

Dombrovskis referred to the reports of the Politico portal in the article entitled “Did Bulgaria manipulate inflation indicators to qualify for the euro area?” He suggests that Sofia intentionally reduced the prices of some public services to fit in the required limits by over 80 percent. The prices of stay in the hospital have dropped.

Dombrovskis replied that the activities of the Bulgarian authorities during the reference period from May 2024 to April 2025 were more inflationary than disinfection, because at that time a reduced VAT rate for bread, flour and restaurants was abolished, and 20 % was restored. VAT rate and excise duty was raised to some goods.

– All these events were included in our assessment, which led us to the conclusion that the inflation criteria were met – emphasized the Commissioner.

On July 10, 2020, Bulgaria joined the ERM II mechanism, which is called the “eurozone waiting room”. Since then, the Bulgarian left course has been associated with the euro.