“I want to point out that Croatia also did not meet the inflation criteria, as well as the national debt. The problem is above all political and lies in the lack of a clear political will and vision for entering the Eurozone. If we compare with Croatia, they have for a long time are preparing, they had a program, great political support. The government itself pursued this goal, while here, with these caretaker governments and changes, there is a lack of political will,” said Prof. Gancho Ganchev in Bulgaria ON AIR.
According to Associate Professor Rumen Draganov, the introduction of the euro is a process that will end with its adoption in the country. “If we have thoughts on the matter, they are when this will happen – whether 2024 – 2025. It is a question of a political decision, it is not made only in our country.
If the parliament is a bit more dynamic during the summer months, it could happen at the earlier date,” he added.
When asked if we need a conservative budget, Prof. Ganchev answered that the requirement of up to 3% of GDP is not particularly conservative. “I think it is achievable. We have quite large expenses in the budget related to the compensation of the high price of electricity, but these compensations are not related to certain conditions. The problem is not in social policy, but in structural costs, there must be conditions. Companies must be compensated if they make specific commitments not to raise prices, for example,” urged Assoc. Draganov to Bulgaria ON AIR.
“This is a serious issue, on which Bulgaria will not be the only one to make a decision. The issue is important for Europe. I do not rule out joining the Eurozone from January 1, 2024,” shared Associate Professor Draganov.
“We are in a currency board, inflation is fought by the central bank. We have no monetary policy, we have no instruments with which to influence inflation and this is perfectly understood by the ECB. Inflation here is caused by external factors and structures of the Bulgarian market”, he believes Prof. Ganchev.
