Finance Minister Asen Vasilev tells Die Welt that Bulgaria’s accession to the Eurozone is overdue. He points out that the lev has been tied to the German mark since 1997, and to the euro since 2007. This means that the European Central Bank has been indirectly determining the Bulgarian monetary policy for years.
“But we are not present when the decisions are made. From this point of view, with the accession of Bulgaria to the Eurozone, we will regain control over our currency to a certain extent,” Vassilev explains.
However, he adds that the main motive is another – through the introduction of the euro, the Bulgarian economy will save a lot of money, since 60 percent of the country’s trade is with other European countries, and because of the different currencies, the costs of carrying out transactions are high. According to Vasilev’s calculations, it is about 1 billion euros or one percent of the Bulgarian GDP.
Vassilev expresses his optimism that from January 1, 2025, Bulgaria will be in the Eurozone and points out arguments such as the fact that the country’s debt of 22% is the second lowest in the entire EU and far below the maximum permissible level of 60 percent. Bulgaria has no problem with the three percent deficit set in the Maastricht criteria. Vassilev told Tagesspiegel that 2023 ended with a deficit of 2.2 percent.
Still, there is a problem, the finance minister does not hide, and points to the too high inflation of five percent. But he is optimistic about this as well. The minister’s forecast is that in June or at the latest in September, inflation will come down to the required level.
Minister Vassilev stated to “Tagesspiegel” that he sees no reason to postpone Bulgaria’s accession to the Eurozone – the banks are also technologically ready, and the new euro coins are in the process of being made. Polls show that most Bulgarians support Bulgaria joining the Eurozone, Asen Vassilev also says. And the support from the economy is even greater, writes DW.
Vasilev also commented on the subject of the weaknesses of the euro: Decisive for the future of the euro will be whether we all manage to increase the competitiveness of the European economy as a whole. It is necessary to put order in Europe in terms of energy – because energy costs in Europe cannot be permanently higher than those in the USA or in China. This is a serious problem that also affects the common currency.
Place a rating:
☆
☆
☆
☆
☆
1.5
Rating 1.5 out of 15 votes.
2024-02-08 17:32:00
#Asen #Vasilev #euro #save #lot #money
