Mr. Radev, the Council of the European Union, following the European Parliament, has formally approved Bulgaria’s accession to the euro area. How do you receive this decision?

– Without undue emotion. This was an expected and deserved outcome – the culmination of years of sustained efforts and consistent work at many levels. For us at the Bulgarian National Bank, it confirms that we made the right strategic choice. Now our focus shifts entirely to the practical implementation.

Still, this is undoubtedly a historic act.

– It is indeed. This is a strategic milestone, one that will have long-term implications. Over time, its positive significance will be increasingly recognised by society as a whole.

What concrete steps remain in the preparations for euro adoption?

– We are now in the final phase of preparations. The key processes have already been structured and we are in the process of activating them. This week, for example, we begin minting Bulgarian euro coins. In parallel, we are finalising the technical readiness of all systems, organising the logistics of the currency exchange, and intensifying the public information campaign. Everything is proceeding under a clear timetable, in close coordination with the Government, the European Central Bank and the European Commission.

Some time ago, you said that we should focus on three things: inflation, inflation and again inflation. What would you say today?

– In the same spirit, today the focus is: the budget, the budget and again the budget. In recent years, we’ve witnessed a deterioration of the fiscal position – a trend that needs to be reversed. Fiscal stability has always been one of Bulgaria’s key comparative advantages. Within the euro area, its importance is not diminishing – quite the opposite.

How does the BNB’s role evolve within the euro area?

– The BNB becomes part of the Eurosystem – the institutional framework comprising the European Central Bank and the national central banks of the euro area. This entails direct participation in the formulation and implementation of the common monetary policy, as well as in the decision-making processes at the European level. Our core mission remains unchanged: safeguarding price and financial stability. We will now be operating in a new institutional and economic environment – one that presents more opportunities, but also higher expectations.

How will euro adoption affect the BNB’s foreign exchange reserves?

– With the euro becoming our domestic currency, the structure of our foreign exchange reserves will naturally change. Part of these reserves will be transferred to the ECB in accordance with the rules of the Eurosystem. This includes two main elements: our capital subscription to the ECB, and a reserve contribution in the form of foreign currency assets, which become part of the system’s external reserves. In return, the BNB will receive a proportionate share of the Eurosystem’s income. This transformation does not diminish the strategic capacity of the central bank – on the contrary, it enhances it, as we operate within a framework of higher standards for safety, liquidity and profitability.

What are your long-term expectations? What will euro area membership bring to Bulgaria?

– Euro area accession is far more than a technical transition. It is a strategic decision that brings lasting stability, strengthened confidence, and access to powerful financial and economic mechanisms. It lowers transaction costs, removes barriers to doing business, and enables deeper integration into European supply chains and market networks. If we succeed in making full and forward-looking use of these opportunities – through investment in productivity, human capital, and institutional effectiveness – then Bulgaria has not only a chance, but a real historical opportunity to attain the level of prosperity typical for the euro area.

What would you say to Bulgarian citizens at this pivotal moment?

– That this is an important step forward for the country. That the efforts we have made are yielding results. And that this is not the end of the process – it is the beginning of a new phase. Our future success will depend on how we use the opportunities ahead. As always, the Bulgarian National Bank will fulfil its responsibilities with professionalism and commitment – as we have done throughout this process.