Bulgaria ‘fully prepared� for eurozone, says economist, as EU decision nears
Bulgaria to introduce dual pricing in July to help consumers adjust to euro
ANKARA
Bulgaria has a strong chance of joining the eurozone, a Bulgarian financial analyst told Anadolu ahead of Wednesday’s European Commission and European Central Bank (ECB) decision on whether the country meets the criteria for adopting the euro.
Preslav Raykov, a Sofia-based financial analyst, said Bulgaria’s six-month budget deficit and inflation figures support its case for eurozone entry this month, adding that the country is “fully prepared” with its administrative, legislative and financial systems.
This week, the EU will announce whether Bulgaria meets the Maastricht convergence criteria, which measure price and exchange rate stability, public finances and long-term interest rates.
Raykov acknowledged that Bulgaria’s inflation rose in recent years due to the pandemic and the war in Ukraine but emphasized that its price stability and public finances remain within EU thresholds.
The country’s financial system has long operated with a fixed exchange rate against the euro, he added.
Raykov argued that Bulgaria should have joined the eurozone a decade ago but faced repeated delays due to “political reasons.” If the move does not happen by early next year, “it will be delayed again,” he warned.
Bulgaria’s economy is “operating below its potential,” and euro adoption would strengthen growth, Raykov said.
He also dismissed concerns that switching currencies would trigger inflation.
“Inflation concerns are not based on data, but fears created for political purposes by the opponents of the eurozone and Bulgaria’s development in Europe,” he said, adding that the euro adoption will give rise to more international capital into the country, creating new job opportunities.
Bulgaria shifts to dual pricing amid potential euro entry
Deputy Economy and Industry Minister Nikolay Pavlov announced that Bulgaria will introduce dual pricing in July to help consumers adjust to the euro and ensure price transparency.
Yet President Rumen Radev recently muddied the waters, suggesting that euro adoption, previously approved by parliament and the government, should go to a national referendum.
However, National Assembly speaker Nataliya Kiselova rejected the referendum idea, saying it would violate the law.
Meanwhile, public opinion remains divided.
A poll by the research group Trend found that 55% of Bulgarians said they lacked sufficient information about the euro adoption process, while 41% said they were informed.
About 59% supported holding a referendum, while 31% opposed it.
