Bulgaria is fully meeting all nominal criteria required for joining the eurozone, according to Dimitar Radev, Governor of the Bulgarian National Bank (BNB). Speaking at a conference organized by "Capital" meda, Radev emphasized that active participation in the European project remains the best strategic position for Bulgaria, particularly amid growing geopolitical risks. He reassured that the Bulgarian economy is well-positioned despite the challenges, but acknowledged that 2024 ended with a historically low fiscal reserve.

Radev pointed out that despite recent fiscal setbacks, the country still retains significant maneuverability in terms of both fiscal space and the potential to restore depleted buffers. He stressed that uncertainty and unpredictability are key factors going forward, noting that many of Bulgaria’s main economic partners are realigning their industries in response to increasing protectionism and geopolitical risks. This makes it crucial for Bulgaria’s economy to be prepared for sudden shocks, particularly in terms of aggregate supply.

In this context, Radev highlighted the importance of maintaining sufficient buffers in both the banking and fiscal sectors. These buffers have played a key role in mitigating the effects of these risks, while also enabling Bulgaria to adapt and potentially capitalize on changes in the global economy, such as the restructuring of global supply chains. With countries increasingly looking to reduce dependence on external production, Bulgaria’s preparation could help the country benefit from these shifts.

Turning to the issue of Bulgaria’s eurozone accession, Radev confirmed that the country currently meets all the necessary convergence criteria, including the price stability criterion, which had previously been a challenge. He expressed confidence that the final step towards joining the eurozone is within reach, and its successful completion could serve as a catalyst for needed political, institutional, and fiscal consolidation in Bulgaria. Radev’s remarks underline the country’s readiness and determination to move forward in this process with dignity and self-confidence.