A video posted on Facebook by Kostadin Kostadinov, leader of the Revival party, claims that once Bulgaria joins the eurozone on January 1, 2026, Bulgarian MPs will lose the ability to approve a budget unless it has already been approved by the European Central Bank (ECB). According to Kostadinov, the budget cannot be increased after ECB approval - only reduced - and social spending such as salaries, pensions, and infrastructure projects would be at risk of cuts, as the money would come from Frankfurt, not Bulgaria. This video has drawn significant public attention, gathering thousands of reactions and shares.

To clarify these assertions, the Bulgarian National Radio sought official responses. A European Commission spokesperson emphasized that Bulgaria would not lose sovereignty by adopting the euro; rather, it would gain influence. Bulgaria's economy and monetary policy have been linked to the eurozone since the currency board was introduced in 1998, and this connection was strengthened when Bulgaria joined the Exchange Rate Mechanism II (ERM II) and the Banking Union in 2020. By joining the eurozone, Bulgaria will have voting rights within the ECB's governing bodies and participate in shaping monetary policy for all eurozone members. The Commission also highlighted that Bulgaria's budgetary policy remains under national control, with more coordinated oversight to ensure stability within the currency union.

The spokesperson explained that Bulgaria will submit a draft budget plan annually by October 15, as do all eurozone countries, to identify fiscal risks early. The European Commission reviews these drafts and issues opinions, which Bulgaria's national parliament must consider. However, these opinions are not binding, and Bulgaria retains full sovereignty over its budget decisions. In cases of serious non-compliance with EU fiscal rules, the Commission can request budget revisions, but the final approval rests with the national parliament, respecting national procedures.

Economist and former Financial Supervision Commission Vice-Chairman Rumen Galabinov further elaborated that the budget process in Bulgaria has involved consultations with European institutions since joining ERM II in 2020, with no loss of parliamentary control. The budgetary procedure will largely continue as before, with ongoing dialogue and coordination with the European Commission and ECB seen as beneficial.

Galabinov also dismissed claims that salaries and pensions could only be cut and not increased after euro adoption. He pointed out that Bulgaria has regularly updated its budgets - both increasing and decreasing expenditures - as needed, and this flexibility will remain. The responsibility for budget decisions stays with Bulgaria's government and parliament.

Regarding the notion that "there will be no money in Bulgaria, and funds will come from Frankfurt," Galabinov clarified that the Bulgarian National Bank operates one of eleven licensed euro printing facilities, ensuring the country's access to euro banknotes and coins. Some currency will be supplied from other eurozone countries, but Bulgaria will maintain its own capacity.

In conclusion, the claim that Bulgarian MPs will lose the right to approve a budget without prior ECB approval is unfounded. Bulgaria's economy has long been integrated with the eurozone, and while euro adoption brings tighter fiscal coordination, it does not compromise national budgetary sovereignty. Bulgaria will continue to manage its budget decisions independently while benefiting from its increased role in eurozone governance.

Source:BNR Fact Check