Bulgaria stands to lose nothing by joining the eurozone, according to Laszlo Andor, Secretary General of the Foundation for European Progressive Studies and former European Commissioner for Employment and Social Affairs. In an interview with the Bulgarian National Radio, Andor emphasized that the country should treat its accession to the euro area as a positive development.

He acknowledged that protests in Bulgaria reflect a sense of symbolic loss over abandoning the national currency, but stressed that in practical terms, the transition brings no real disadvantages. Bulgaria, he said, has already absorbed the financial discipline required by the eurozone - maintaining low inflation, adhering to fiscal rules, and keeping deficits in check. These sacrifices have been made over years to ensure stability, and now the country is in a position to reap the benefits of adopting the common currency.

Andor noted that Bulgaria's decision is part of a broader but slow-moving trend of convergence between the EU and the euro area. While countries like Sweden, Poland, the Czech Republic, and Hungary still hold on to their national currencies, Bulgaria’s step forward is part of a long-anticipated process.

Asked about Hungary's timeline for joining the eurozone, Andor expressed doubt that it would happen soon. However, he predicted that once Romania adopts the euro - likely within five or six years - the pressure on Hungary will increase. Hungary’s current nationalist leadership under Prime Minister Viktor Orban has resisted euro adoption, enshrining the forint in the constitution. Legal and political hurdles remain, including the requirement of a two-thirds parliamentary majority to amend that provision. Nonetheless, Andor believes that most Hungarians support joining the eurozone, especially as they observe neighboring countries like Austria, Slovakia, Slovenia, and Croatia already enjoying the advantages of the euro. He pointed out that Croatians adopted the euro before Hungary despite joining the EU much later - something many Hungarians experience firsthand when vacationing on the Adriatic coast and using euros with ease.

As an economist, Andor also addressed the roots of skepticism toward the euro, noting the severe impact of the eurozone crisis more than a decade ago. Countries like Greece, Spain, and Ireland, along with others such as Italy and Portugal, were deeply affected. Even the Baltic states, although not in the eurozone at the time, suffered due to pegging their currencies to the euro. This crisis, Andor explained, led to significant reforms, including the creation of the Banking Union and tighter financial regulation beginning in 2012. The Greek experience, he added, holds particular relevance for Bulgaria due to their geographic proximity and shared exposure to eurozone dynamics.

Commenting on Hungary’s domestic political scene, Andor said that although Viktor Orban continues to project confidence, the foundations of his power are beginning to erode. His confrontational stance in the EU - frequently blocking key legislation - has not delivered meaningful results for Hungary and has, in fact, led to the withholding of EU funds. This, Andor argued, has harmed Hungary’s economic growth, social development, and financial health.

Should Orban lose his parliamentary majority in next year’s elections, Andor believes Hungary could start to shift course. Access to withheld EU funds would be restored, encouraging investment and economic expansion. In turn, this would help Hungary meet the Maastricht criteria and move closer to eurozone membership.

Source: BNR interview