Bulgarian National Bank Governor Dimitar Radev described Bulgaria’s upcoming entry into the eurozone as both an economic and strategic step that will reinforce the country’s stability within Europe’s financial and institutional system. Speaking during the IMF’s European Department Policy Dialogue in Washington, Radev underlined that adopting the euro will make Bulgaria “more resilient to external shocks” and better positioned to contribute to Europe’s overall stability and strategic autonomy.

He noted that joining the eurozone should not be seen as an endpoint, but as the beginning of a phase that demands even greater responsibility. This includes maintaining strict fiscal discipline, consolidating institutions, and pursuing a steady course of reform. “These are the principles on which Bulgaria, and our region as a whole, must continue to build convergence, sustainability and long-term growth,” he said.

Radev echoed the conclusions of the IMF’s Regional Economic Outlook, highlighting that Europe faces an increasingly complex and uncertain environment. He pointed to persistent geopolitical tensions, intensified global competition, growing defense and security needs, and the uncertainty surrounding energy and raw materials. The war in Ukraine, he added, is part of a broader global realignment that is testing Europe’s ability to act collectively and remain competitive.

According to the BNB governor, fiscal policy remains the main test of responsibility and trust, though achieving balance remains a challenge in many European economies. “Prudent fiscal policy does not mean austerity, it means responsibility,” Radev explained. “Higher incomes and greater investment are essential, but without discipline and efficiency, they can erode the very stability they are meant to support.” He warned that in the region, confidence in fiscal frameworks is fragile and easily lost, emphasizing that solid public finances are the cornerstone of sustainable growth and a key anchor of stability.

Radev also pointed out that Bulgaria benefits from strong fundamentals, including a low level of public debt, a well-capitalized banking sector, and a sound external position, which provide real foundations for stability and trust. However, he stressed that stability alone is not sufficient. “It must become a platform for transformation, to raise productivity, strengthen institutions, and drive innovation,” he said.

Concluding his remarks, Radev emphasized that Europe’s challenge lies not only in enduring uncertainty but in transforming it into an opportunity for renewal. “This means completing the single market, deepening capital markets and pushing forward with reforms that enhance competitiveness and resilience,” he stated. “If Europe acts decisively and coherently, it can turn its diversity into strength. If it hesitates, it risks losing ground in an increasingly competitive world.”