‘Now the question is when Bulgaria will join, not if it will enter the Euro area and if it can adopt the Euro. I would like this membership to be realized. I believe that the advantages are very important both for Bulgaria and Europe, that we must work until this mission is fulfilled. Thus, your membership will be beneficial for the Bulgarian people, for everyone in Europe and for the members of the Euro area’. This was stated by Pascal Donahue, chairman of the Eurogroup, during the conference organized today by the Ministry of Finance on the topic: ‘European path of Bulgaria - joining the Euro area: advantages and challenges to be met by business”.
He pointed out the practical advantages of the Ireland membership in the Euro area, which would be similar for Bulgarian people and for the Bulgarian economy - namely, that the Euro is a global currency and a currency reserve for the countries that adopt it. In addition, the countries that use Euro have lower inflation and lower interest rates. According to Donahue, there are huge benefits and convenience for those people who want to travel to countries where the Euro is a single currency, as well as for those who want to sell goods and services outside of Bulgaria and can do so in conditions of confidence in the value of that currency.
‘If Bulgaria enters the Euro area, this means that your Minister of Finance and the governor of the central bank will be in the room where the important decisions are made. When the Eurogroup meets to discuss issues that are important to the economies of the European Union, the European Central Bank will make decisions about its policy that will have a decisive impact on the economy in Bulgaria, but your governor of the central bank will attend these discussions’ - added the Chairman of the Eurogroup.
‘All expectations and models are that Bulgaria should cover the inflation criterion this year. The question is whether it will be in June, September, October or November. These are the different models provided by different institutions. Inflation is the only remaining criterion that should be met for Bulgaria to join the Euro area. We have covered the other criteria’ - said the Minister of Finance Assen Vassilev. He specified that if we have not covered the inflation criterion by June, when the convergent reports for all countries will be released, Bulgaria may request, and the EC has committed to prepare an additional convergent report in a short period. This will happen the moment we cover the last criterion.
The Minister of Finance assured the conference participants that our country has been working very actively with all sectors – both banking and non-banking – on our accession to the Euro area. We are currently in final discussions with the European Central Bank on the Law on the Euro Introduction, after which it will be published for public discussion and probably by May - June it will be adopted by the National Assembly.
Dimitar Radev, Governor of the BNB, stated that our country is currently at an important stage on its European path, because now Bulgaria is a member of the Banking Union, but not a member of the Euro area. He also added that analysis that has been made by the BNB of our membership in ERM II up to now is that the experience of joining the Banking Union appeared to be positive. ‘The Euro area is an opportunity; it is not a guarantee of achieving the results. The prescription is related to reforms and good policies, as well as the technical preparation for the Euro area membership, which is currently underway.’ - said Radev.
The Chairman of the Committee on Budget and Finance in the National Assembly, Yordan Tsonev, recalled that our membership in the Euro area is a process that started back in 1997, when the decision was made to introduce the Currency Board in order to be ensured financial stability of our country, as well as the fact that at that time it was accepted that the Bulgarian lev (BGN) should be held to the German mark, the Euro was only planned. ‘This process goes through a national consensus’ - Tsonev categorically affirmed.
More than 100 representatives of Bulgarian business, employer and trade union organizations and the diplomatic corps took part in the conference. Representatives of business organizations expressed their firm support for our country accession to the Euro area.
A video recording of the conference can be seen here.