I am very optimistic that Bulgaria will become the next country of the Eurozone on January 1, 2025. This is stated by the Minister of Finance Assen Vassilev in an interview with the German publication Die Welt, distributed by the Ministry of Finance.
Vasilev points out that our country has the second lowest ratio of debt to GDP in the European Union – 22 percent, and that for many years we have been well below the maximum allowable level of 60 percent. The goal of a deficit of three percent according to the Maastricht criteria is also not a problem, the minister notes.
Bulgaria received strong support for the Eurozone
He points out that only 5 percent inflation is still too high. However, for months we have also seen a sharp decline in this indicator. We assume that inflation will reach the required level in June or in September at the latest, says Minister Vasilev.
Asen Vasilev states that he sees no reason for postponing Bulgaria’s accession to the Eurozone.
“The new euro coins are already being minted and the banks’ information systems are ready. But, of course, this does not depend on us, it is a decision of the European Commission and the European Central Bank,” the minister points out.
According to Minister Vasilev, our accession to the Eurozone is long overdue.
“Since 1997, the value of the leva has been tied to the German mark and later to the euro. Indirectly for many years the European Central Bank has determined our monetary policy. But we still have no seat at the decision-making table. From from this point of view, with the accession of Bulgaria to the Eurozone, we are regaining a certain degree of control over our currency”, the finance minister points out.
The National Assembly adopted the amendments to the Law on the BNB, which regulate the introduction of the euro
He states that the main motive for introducing the euro is that our domestic economy saves a lot of money through the euro.
“Today, more than 60 percent of our trade is with other European countries. On the other hand, the two different currencies have so far incurred high transaction costs,” notes the minister and explains that they represent about 1 percent of Bulgaria’s GDP per year, just under one billion euros.
Asked how big the Bulgarians’ reserves are for the euro,
Minister Vasilev notes that according to sociological surveys, the majority of Bulgarians support the accession, and the support in the business community is even greater.
When asked about the economic stability of Bulgaria in the coming years,
Asen Vassilev says that from the very beginning, wage increases have been at the heart of efforts in the field of economic policy.
“We provide higher wages, and employers receive government support for investments that increase the productivity of the economy. This pays off in many ways. On the one hand, tax revenues increase. On the other hand, despite the sharp rise in wages, unemployment is decreasing.” , says Minister Vassilev. He notes that in 2022, for the first time, more workers moved from Europe to Bulgaria than from Bulgaria to Europe.
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Asked where he sees the euro’s weaknesses,
Asen Vasilev points out that, in his opinion, the decisive factor for the future of the euro is whether we all manage to increase the competitiveness of the European economy as a whole.
“We need to get the European energy space in order. It is unacceptable that in Europe we have significantly higher energy costs in the long term than in the US or China. This is a huge disadvantage that will also have an impact on the common currency in the long term.” Vassilev thinks.
He adds that Europe needs a combination of technologies and sources of energy production that will make us competitive in the long term. “We are investing seriously in photovoltaics and wind energy, in new hydroelectric and pumped storage plants, as well as in new nuclear power plants,” the finance minister added.
Source: BTA/Anelia Tsvetkova
2024-02-10 09:57:59
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