Governor Radev's Warning: Bulgaria's Eurozone Bid Imperilled by Political Crisis
Bulgaria still fails to meet the criteria for entering the eurozone, as acknowledged by the National Bank on Tuesday.
This shortfall is attributed to the ongoing political crisis within the country, with the 6th round of elections in the past three years scheduled for June 9, as reported by the EFE agency, cited by Agerpres.
Dimitar Radev, the governor of the central bank, conveyed during a press conference that, "As a result of the political crisis in recent years, we have regrettably lost both the initiative and leadership in the process of eurozone accession."
He assured that the forthcoming convergence report, slated for publication next month, will reveal that Bulgaria does not meet all the necessary criteria. These criteria encompass price stability, deficit control, exchange rate stability, and interest rates. Annual inflation, at 3% in March, exceeds the eurozone average of 2.4%.
While Governor Radev expressed confidence that both the central bank and financial institutions will be fully prepared by year-end for euro adoption, he cautioned that certain technical and logistical aspects are contingent upon governmental actions. These aspects must be adapted to align with eurozone requirements.
Radev underscored the imperative of a clearly defined and sustainable pro-European political structure within the country, emphasising the urgent need for swift approval of legislation pertaining to the introduction of the single currency. He stated, "Such legislation will provide clear directives and new legal assurances for businesses and households regarding the transition."
Moreover, Radev indicated that should favourable conditions arise following the June 9 elections, Bulgaria still retains realistic prospects for adopting the euro next year.
In April, Governor Radev had already acknowledged the possibility that entry into the eurozone might not transpire on January 1, but rather later in the year, according to reports from EFE.
Translation by Iurie Tataru
