On Wednesday, the European Central Bank and the Commission announced that Bulgaria and Romania will not be able to join the Eurozone due to failing to meet the necessary criteria. Despite actively pursuing euro membership, both countries have struggled to meet the required conditions, with Bulgaria’s inflation at 5.1 percent in May and Romania’s inflation averaging 7.6 percent last year. The ECB noted that countries in Eastern and Central Europe have been affected by Russia’s war of aggression against Ukraine, leading to a decrease in economic activity and a significant increase in energy prices. Currently, 20 of the 27 EU member states belong to the euro area, with Croatia being the newest member since adopting the common currency at the beginning of last year. Denmark has opted out of adopting the euro, but other EU countries outside the euro area are expected to join eventually.
The report published every two years by the ECB examines the conditions of six EU countries that are not part of the common currency. These countries include Bulgaria, Romania, Czech Republic, Hungary, Poland and Sweden. While both Bulgaria and Romania have made efforts towards joining the Eurozone, their high inflation rates compared to other euro area countries have hindered their progress. Inflation in Bulgaria was at 5.1 percent in May while Romania’s inflation averaged 7.6 percent last year which is much higher than other countries in Eastern and Central Europe who have also been affected by Russia’s aggression against Ukraine leading to decrease in economic activity and an increase in energy prices.
The European Commission has stressed on reducing corruption and money laundering as necessary criteria for any country looking to join