Bloomberg: Bulgaria May Delay its Bid to Adopt the Euro

Society | February 18, 2020, Tuesday // 17:14| Views: | Comments: 0
Bulgaria: Bloomberg: Bulgaria May Delay its Bid to Adopt the Euro www.pixabay.com

Bulgaria signaled it may delay its bid to adopt the euro amid fears the preparatory steps could jeopardize a long-standing fixed exchange rate to the common currency, Bloomberg reported.

The Balkan country had planned to join ERM-2 -- a mechanism that acts as the euro’s ante room before full membership -- by the end of April. But parliament recently passed legislation mandating the government to only do so at the existing exchange rate.

Prime Minister Boyko Borissov indicated Monday that more time could be necessary amid concerns that other member-states and the European Central Bank may seek to shift the peg, which has offered predictability to businesses and households since a banking and currency crisis in 1997.

What’s more, a majority of Bulgarians oppose joining the euro region, fretting that companies will use the shift to raise the prices of their goods.

“I’m obliged to slow down the tempo and only when we convince everyone this is good, we’ll move forward,” Borissov said in Sofia, the capital, without explicitly dismissing the April target date for ERM-2. “Until there’s an absolute consensus, we won’t force our entry into the waiting room.”

Bulgaria -- along with Croatia and Romania -- are bidding to join the 19-member euro zone that’s already home to five nations from the continent’s ex-communist east.

With low levels of public debt and balanced budgets, Bulgaria meets most technical criteria to adopt the euro and had been first in line, though worries remain over its financial system. It had agreed to join the European Union’s banking union alongside ERM-2.

Borissov touted the benefits of euro-region membership but acknowledged people’s concerns.

“There’s no country that got worse off from entering the euro area,” he said. But “Bulgarians are worried. The worries are whether prices will go up.”

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Society » Be a reporter: Write and send your article
Tags: Bloomberg, Bulgaria, euro, bid, Adopt
Advertisement
Advertisement
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria