The European Commission reported in Brussels on Wednesday that Bulgaria is not yet ready to adopt the single European currency because inflation is too high.
The euro's introduction was originally scheduled for earlier this year but was postponed after the southeastern European country recorded 9.5 percent inflation last year.
The committee is working on the assumption that inflation this year will fall to 3.1 percent compared to last year, according to its May economic forecasts.
Countries joining the euro area must meet criteria on price stability, fiscal and exchange rate stability and long-term interest rates, which must not be more than two percentage points higher than the most stable EU country in the year preceding the assessment.
All EU member states except Denmark have a legal obligation to join the eurozone. Apart from Bulgaria, Poland, Romania, Sweden, the Czech Republic and Hungary are not yet members.
The commission reported that Bulgaria, which joined the European Union in 2007, is currently the only country except for one that meets the criteria and has domestic legal regulations compatible with monetary union.
Eurozone membership could become politically contested in Bulgaria, where the pro-Russian, nationalist Renaissance party is pushing for a referendum on eurozone membership.
The pro-EU coalitions Bulgaria’s Alliance of Civil and Democratic Forces for European Development (GERB-SDS) and We Will Continue the Change – Democratic Bulgaria (PP-DB) strongly support eurozone membership.
