The euro is about to get a new member, Bulgaria. What's the eurozone and how do countries join?

FRANKFURT, Germany -- European Union officials gave the greenish airy Wednesday for Bulgaria to go the 21st member of the euro currency union,, a cardinal EU task aimed astatine deepening the ties betwixt subordinate countries.

The Balkan state of 6.4 cardinal radical is to marque the power from its nationalist currency, the lev, to the euro connected Jan. 1.

Here are basal facts astir the currency union, besides called the eurozone, and however countries articulation it.

The euro is simply a shared currency and monetary strategy launched successful 1999 erstwhile 11 EU subordinate countries irrevocably fixed their currencies to the euro arsenic an accounting currency, past swapped retired the nationalist notes and coins successful 2002.

The EU established the European Central Bank to grip monetary argumentation and acceptable involvement complaint benchmarks for subordinate countries, akin to the relation of the U.S. Federal Reserve successful the U.S.

Countries indispensable conscionable 4 criteria: debased inflation, keeping deficits and indebtedness nether control, debased semipermanent involvement rates and a unchangeable speech complaint betwixt their currency and the euro. Countries indispensable spell done a two-year “waiting room” successful which their currency does not fluctuate excessively against the euro. The process is meant to show that their economies are sustainably converging with that of the eurozone.

Once the European Commission determines that requirements person been met, the subordinate governments of the EU determine by what's called a qualified bulk vote. Approval needs a minimum of 55% of subordinate states representing astatine slightest 65% of the EU population.

After joining, countries look rules limiting indebtedness and deficits. Those rules are intended to support countries from moving ample deficits that could undermine the euro.

The European Commission ruled Wednesday that Bulgaria has met the requirements, seconded by an sentiment from the ECB. The substance present goes to a ballot astatine a gathering of EU concern ministers slated for July 8. EU officials accidental the ballot is simply a done deal.

Bulgaria is antithetic successful that it pegged its currency, the lev, to the euro close from the opening of monetary national successful 1999, adjacent earlier it joined the European Union successful 2007. Bulgaria besides has precise debased levels of debt, lone 24.1% of yearly economical output. That is good beneath the 60% level acceptable successful the economical criteria for eurozone membership. The past measurement was getting ostentation beneath the benchmark of 2.8%, oregon nary much than 1.5% higher than the mean of the 3 lowest eurozone members.

There were concerns astir the level of corruption and wealth laundering successful the EU's poorest country. The committee and the ECB recovered nevertheless that Bulgaria has made advancement successful those areas.

The astir caller Eurobarometer canvass carried retired by the EU showed that 50% of Bulgarians were opposed and 43% successful favor. Reasons see fears of inflation, distrust of authoritative institutions successful a state that has had 7 governments successful 4 years, and widespread misinformation connected societal media.

The contented has been taken up by pro-Russian nationalist politicians who reason for keeping the nationalist currency. President Rumen Radev stoked anti-euro forces with a connection for a referendum, which was rejected by parliament. Misinformation included mendacious claims that the euro would let EU officials to confiscate dormant slope accounts oregon usage a integer euro to power people.

On Jan.1, lone euros volition beryllium dispensed from currency machines, though some currencies volition circulate successful currency for a month. After that, lev notes tin beryllium exchanged astatine banks for 12 months and for an unlimited clip astatine the Bulgarian nationalist bank.

In theory, the euro brings means little involvement rates for concern and consumers and eases cross-border commercialized wrong the eurozone. Companies nary longer person to prosecute successful currency speech transactions oregon interest that speech complaint shifts volition erode their profits oregon holdings. Travelers nary longer person to wage commissions astatine an speech booth oregon connected their recognition paper measure erstwhile vacationing oregon connected a concern travel to different EU country.

Member countries get a spot connected the ECB’s rate-setting assembly and truthful person a dependable successful eurozone-wide monetary policy.

Countries that articulation suffer immoderate authorization implicit their ain economy. They springiness up their quality acceptable their ain involvement rates, and look restrictions connected authorities spending and deficits, though those rules person proved flexible successful practice. And they tin nary longer summation competitiveness comparative to different countries by allowing their currency's speech complaint to devalue.

Bitter memories stay of the indebtedness and economical situation that shook the eurozone successful 2010-2015. After Greece admitted its shortage and debts were overmuch larger than antecedently reported, it coiled up defaulting connected its debts and marketplace turmoil dispersed to different eurozone countries.

Greece, Portugal, Ireland, Spain, and Cyprus were bailed retired with loans by the different eurozone governments, successful instrumentality for strict austerity measures that impacted galore mean radical including authorities workers and retirees.

ECB President Mario Draghi is credited with defusing the eurozone situation successful 2012 by saying that the cardinal slope would bash “whatever it takes” to prevention the euro. The ECB past said it could intervene successful enslaved markets to enactment countries deed by turmoil, a safeguard that calmed markets adjacent though it was ne'er used.

Later different backstops were added, including a eurozone bailout money and moving banking oversight from sometimes-lax nationalist supervisors to the ECB.

Countries hold to articulation the euro arsenic portion of joining the EU, but not each person made the effort to conscionable the economical requirements. There is nary clip model to join.

Denmark was granted an opt out, portion Sweden rejected the euro successful a 2003 referendum contempt not having an opt retired and has nary people day to join. Other non-members are Czechia, Hungary, Poland and Romania.

Officials successful Poland, the biggest non-member, person shown small involvement successful joining contempt acknowledging the work to articulation someday. The victor of Sunday's statesmanlike election, Karol Nawrocki, campaigned connected keeping the zloty currency.

The country's system has grown powerfully without euro membership, doubling successful size implicit the past 2 decades arsenic its modular of surviving has astir caught up with Western Europe since emerging from communist regularisation successful 1989.