Bulgaria on Wednesday secured the green light to join the euro zone, meaning the bloc could soon grow from 20 to 21 members.

The European Commission and European Central Bank both assessed that the country met the requirements to adopt the single currency starting next year.

“This positive assessment of convergence paves the way for Bulgaria to introduce the euro as of 1 January 2026 and become the 21st EU Member State to join the euro area,” Philip Lane, member of the ECB Executive Board, said in a press release.

The European Commission described the assessment as “a critical and historic step on Bulgaria’s journey towards euro adoption” in a statement.

European Commission President Ursula von der Leyen congratulated the country, saying the decision “will mean more investment and trade with euro area partners, and more stability and prosperity for the Bulgarian people.”

“Bulgaria will also take its rightful place in shaping euro area decisions,” she added in a social media post.

This marks a shift from last year’s reports, which concluded that Sofia did not meet the so-called convergence criteria to adopt the currency on the grounds that the country’s inflation rate was too high.

One of the obstacles to cross was inflation. Bulgaria’s harmonized consumer price index — which is comparable across European countries — came in at 2.8% in April according to statistics agency Eurostat.

Price stability is just one of the requirements a country needs to fulfil in order to join the euro zone, and thereby the European Central Bank. Others include limitations on the size of a nation’s government deficit and debt ratio, its average nominal long-term interest rate and its exchange rate stability.

There is also a legal requirement that covers central bank independence.

Bulgaria joined the European Union in 2007 and committed at the time to also join the euro zone and relinquish the Bulgarian lev as its official currency. Around 341 million people use the euro across the current 20 euro zone countries, according to the European Union. The ECB says over 29 billion euro bank notes with a value of more than 1.5 trillion euros ($1.7 trillion) are in circulation.

One euro is equivalent to 1.96 lev, a rate set when Bulgaria became part of the board which anchors the currencies.

There are mixed attitudes about joining the euro within Bulgaria. A survey published last year by the EU suggested 49% of the public was in favor of the becoming part of the euro bloc. Political opinion is also split, with several nationalist parties and the country’s president advocating against it, while Prime Minister Rosen Zhelyazkov is supportive.

The European Commission said that alongside its assessment, it had also adopted proposals for a council decision and council regulation on Bulgaria’s euro adoption at the start of next year. The council of the EU has the final say on countries joining the euro zone.

Private sector job creation slowed to a near-standstill in May, hitting its lowest level in more than two years as signs emerged of a weakening labor market, payrolls processing firm ADP reported Wednesday.

Payrolls increased just 37,000 for the month, below the downwardly revised 60,000 in April and the Dow Jones forecast for 110,000. It was the lowest monthly job total from the ADP count since March 2023.

The report comes two days before the more closely watched nonfarm payrolls count from the Bureau of Labor Statistics, which is expected to show a gain of 125,000 and the unemployment rate steady at 4.2%.

While the two reports often differ, occasionally by large margins, the ADP count provides another snapshot of the jobs picture at a time when questions are being raised over broader economic conditions.

“After a strong start to the year, hiring is losing momentum,” said Nela Richardson, chief economist for ADP.

Goods-producing industries lost a net 2,000 positions for the month, with natural resources and mining off 5,000 and manufacturing down 3,000, offset by a gain of 6,000 in construction.

On the services side, leisure and hospitality (38,000) and financial activities (20,000) provided some signs of strength. However, declines of 17,000 in professional and business services, 13,000 in education and health services and 4,000 in trade, transportation and utilities weighed on the total.

Companies employing fewer than 50 workers saw a loss of 13,000 while those with 500 or more employees reported a drop of 3,000. Mid-size firms gained 49,000.

Regarding wages, annual pay grew at a 4.5% rate for those remaining in their positions and 7% for job changers, both little changed from April and still “robust” levels, Richardson said.

Economic data has provided a mixed bag of late for the labor market. The BLS reported Tuesday that job openings rose more than expected in April, though other indicators, such as surveys from employment site Indeed and the National Federation of Independent Business, show weaker levels of openings and hiring intentions.

“The market remains distressingly gridlocked, with limited hiring and low quits, and the market can’t keep steadily cooling off forever before it just turns cold,” Indeed economist Allison Shrivastava said after Tuesday’s job openings report.

Federal Reserve officials have been generally optimistic about economic conditions, though in recent days they have expressed concern about the potential impact from President Donald Trump’s tariffs on both inflation and employment.

“I see the U.S. economy as still being in a solid position, but heightened uncertainty poses risks to both price stability and unemployment,” Fed Governor Lisa Cook said Tuesday.

Fed officials are expected to stay on hold regarding interest rates when they meet in two weeks.