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Home»Finance»Finance minister says Bulgaria’s euro bid may be postponed
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Finance minister says Bulgaria’s euro bid may be postponed

The Elite Times TeamBy The Elite Times TeamMarch 19, 2024No Comments2 Mins Read
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(Bloomberg) — Bulgaria’s finance chief says the government’s efforts to join the euro are on track but could be delayed for several months as it aims to meet euro membership criteria next year. .

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Finance Minister Assen Vasilev said Black Sea countries would request interim assessment reports as soon as they met the criteria, and a start date could be set for March or July next year. The 20 eurozone member countries have always carried out currency swaps on January 1st.

“We have not given up on January 1, 2025,” Vasilev said in an interview in Sofia. He’s “close, very close” to reaching his goal at the beginning of the year.

Bulgaria faces political turmoil, including a series of weak coalition governments and a caretaker government, hampering efforts to join the single currency. The Ukraine war and last year’s European energy crisis also derailed plans to hit the inflation target.

The Bulgarian government has consistently advocated joining the euro, touting the benefits of improving living standards and securing the country’s place in the eurozone. However, concerns about soaring prices have made it difficult to sell the single currency, and the majority of Bulgarians remain skeptical about its introduction.

Bulgaria’s currency, the lev, has been pegged to the euro since 1997 as part of a currency commission agreement to help the country deal with its hyperinflation crisis.

Eurogroup Chairman Pascal Donohoe expressed optimism this month about Bulgaria’s prospects for joining the euro in 2025, saying it was up to Sofia’s government to seek a further economic assessment.

“Bulgaria can join in 2025, and for that to happen all the work is essential, especially to meet this year’s inflation test,” Mr Donohoe told reporters in Sofia on Friday.

However, political turmoil has become the norm. Bulgaria’s two main ruling parties formed an unlikely coalition last year in hopes of breaking an ongoing deadlock, but they are at odds over administrative posts and reform plans, threatening to scrap a nine-month deal. be.

President Rumen Radev has given former Prime Minister Boyko Borisov’s party one week to form a new government, which will decide whether a stable coalition can continue its commitment to reforms and the euro or whether it will face fresh elections. This will be the sixth time in just over two years.

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