Bulgaria Likely to Adopt Euro in 2012-2013

Changing the leadership changes nothing in BG. Same propaganda b$ll$cks. It's not up to BG when they join the Euro. It's up to the European Central Bank.

They will have a nice currency to play with but no Bulgarians left in Bulgaria!!
Euro adoption is all Bulgaria needs now to be completely destroyed.
Within 6 months from Eu adoption in Greece prices jumped from 100 to 6000 % and kept on climbing. No item left unchanged except people's salaries.
Today, prices of goods in Germany are way lower than Greece and salaries at least double!!

Kostis,

Your view is widely held but its terribly wrong...

Because your currency is ALREADY tied to the EURO (unlike Hungary/Romania) switching to the euro will have no effect on our prices.

And thank god for that, cause if your currency had not been pegged and freely floated-they would of devalued that Lev many times over the past 18 months!

The most controversial and BEST move the BG governmant took in the late 1990's

PK

The Lev was linked to the Deutschmark in the 90's, NOT the Euro.

The Euro did not exist as a currency until the 00's.

I anticipate the same thing occurring in Bulgaria as occurred in Germany upon adoption of the Euro.

Prices will double on many an item, simply because it is so easy to stick that Euro sticker right on top of the LV sticker.

For example, overnight a Cola at the gas station went from 90 Pf to 90Ct, when merchants were asked why they did it, the common reply was because we can, and the people are still buying it.

Hopefully people will remember to divide and NOT multiply by 2 (1.95583) when figuring out their new Euro prices on merchandise.

We shall see if/when the time comes.

Bulerican:

I've had the same experience. I first noticed it on a TV magazine I bought every week. The price was 1 Mark. The publishers had been talking about not raising their prices, but suddenly the magazine appeared with a price of 1 Euro, which in effect almost doubled the price.

The problem, as I see it, is that the Euro SOUNDS cheaper. You hear, "Only 20 Euros" as a price. You have to stop and think that (in American terms) 20 Euros is $30, using an exchange rate of $1.25.

But then, in almost any language, "only" is a word which appears in front of a ridiculous price.

"You have to stop and think that (in American terms) 20 Euros is $30, using an exchange rate of $1.25." Ermmmm ... no it's not!

You can't count, you can't type AND you're a Mormon! God wasn't thinking of you all these times he saved your life, he was only keeping you going to amuse himself!!

Eurotourist:

You're right. I did something wrong on my calculator. $25 is accurate.

But why do you always keep quiet on this forum unless you can slam someone?

Please, let that Euro stay where it is and don't let it be introduced in BG for many years to come. I'm sure here in BG they'll play the same tricks as played in Holland in January 2002. The friggin digits stayed the same, only the symbol was changed. Conversion rate was 2.2 guilders to one euro....so the dutch endured for many items, especially those items people need every day (food), more than 100% increase. Most frustrating thing is that our government (at the time as well as current, however basically they're the same aho's) is denying this high and low.....

pk,
I wish your genuine thought was right but the experience of millions of people in the periphery of Europe shows the opposite.
Conversion maths worked for Germans because of 1:2 relation. Maybe will work for Bulgarians due to the inherited peg to the German mark but the most important reasons for price explosion is related to the ethics of the businesspeople and government expecially.
In Greece for example there is no shop owner or service provider who will not reap you off if he is given the chance. And Euro introduction geve them the chance!! Prices increased weekly, monthly, annually to the extent that drained completely the disposable income of the middle class created in the 80's. The rich became richer the middle class went down the drain and then... government/bankers came up with the cheap loans solution enslaving millions of people's income for their whole life to the Bankers!!!
Govenment instead of regulating prices, loans etc. did exactly the opposite. Higher prices=higher GDP=window dressing of the economy=higher taxes....too good for their short term gains to think about what is fair for the consumers.
By the way, I remind you that the same bankers I am talking about have a substantial position today in Bulgaria and....wait for you in the corner!

Bul,

I misread it-so you are technically correct - as here what it is:

"On 5 July 1999 the lev was redenominated at 1000:1 with 1 new lev equal to 1 Deutsche Mark.[3] The ISO 4217 currency code for the new Bulgarian lev is BGN.

Commemorative 1.95583 leva coinWith the replacement of the Deutsche Mark by the euro, the lev's peg effectively switched to the euro, at the rate of 1.95583 leva = 1 euro, which is the Deutsche Mark's fixed exchange rate to euro."

But I still stand by their will be no chage in prices like their was in Germany and other couintries BECAUSE your ALREADY on the EURO..

The ONLY thing BG government can do to screw us here is to REMOVE the peg -let the LEV float ( devalue it) and THEN make EVERYONE switch.

And this will not happen!

Kostis : I have a friend from Greece living in Bulgaria and he complaint about the same thing that you are speaking about - according to his words there was a massive went down on live quality due to the speculations with prices around the Euro adoption.

About Bulgaria - the biggest problem is the fact that the current course of the leva/euro is 1.9553 leva for 1 euro and not 2 leva for a euro, so the formula 1:2 is not in flavor of the traders and they'll try to force some other way of price defining. On the other hand early or later Bulgaria should become part of the eurozone, so now there is a good chance, since one of the requirements is low inflation rates, which we have now due to the recesion :)

Idiots, Bulgaria does not need the Euro to rip-off people.
You people always underestimate the BG's...

And why should the lev be devaluated?
Because that loosers in the West say it?
The same loosers that are worsening the crisis every day by printing money and taking other stupid decissions?

What is the biggest part of the crisis in Bg atm?
The people, knowing what a crisis is and prepare for the worst. Not spending much money.
Many don't take a holiday this year. Many stay in their villages or cities. Buy a swimming pool of 100 lev instead of a vacation of 1000 lev.
They do not spend.(But are not prepared to go work for a lower salary, building sector for example. Can't do anything wright but want the same salary as in West-Europe...)
They know what a crisis is.
The former government also knew it and was prepared for it.

That's why the biggest hits are in West-Europe.
And the the worst still needs to come there.

You cannot print or create so much new money without getting punished.
That is very logical for people WITH brains.

In Western-Europe they still don't get it do they, the next 20-50 years will be much much lower then the last 20.

So much lower nobody in his life will forget this crisis.

But you don't believe it do you, you need to feel it.
The hard way.

And that is exactly what you gonna get.
And i wished somebody told that to Boyko and his team America lovers who have only Western views in their head.

You don't bet on a 30 year old horse which can drop dead any minute!!!

Ivanko,

I cant expect you or any Bulgarian to understand Capitalism economics, so your better off staying away from that subject and focusing on what u do know- Bulgarian culture.

And everything u say about your people:very careful with credit and being able to adjust quickly to adversity is true.

Some we Westerners could learn from -as I agree were going down in the US...

WAY DOWN...!!

nickname778,

still you are close enough to 1:2 ratio. Try the 1:345.6 in drachmas and see what we had to face.
Low interest rates yes, but also higher prices=bigger loans=more years to repay=catastrophe.
Today 90% of the workforce in Greece is enslaved for the rest of their lifes.