Bulgarian Economists: No EU Country Has Entered The Eurozone With Minimum Wage Below 500 Euros!

Business » FINANCE | April 1, 2024, Monday // 15:38
Bulgaria: Bulgarian Economists: No EU Country Has Entered The Eurozone With Minimum Wage Below 500 Euros! @Pixabay

As Bulgaria grapples with economic challenges, economists highlight the country's lagging position in the European Union, particularly in terms of purchasing power. According to recent Eurostat data, Bulgaria ranks last in the EU, a concerning indication of its economic standing.

Economists emphasize a critical disparity: no EU member state has entered the eurozone with a minimum wage below 500 euros. This stark reality underscores Bulgaria's economic struggles and highlights the need for significant improvements to bridge the gap with its European counterparts.

Vasil Velev, Chairman of the Association of Industrial Capital, expressed concern over Bulgaria's sluggish economic growth compared to other Central and Eastern European countries. He noted that while Bulgaria is progressing, its pace is insufficient, leading to a widening gap in productivity and living standards.

"The other countries of Central and Eastern Europe have overtaken us significantly. They are already approaching the EU average," Velev remarked in an interview with bTV. He emphasized the importance of boosting GDP per capita to enhance Bulgaria's standard of living and competitiveness.

Similarly, Lyuboslav Kostov, Chief Economist at the Confederation of Independent Trade Unions of Bulgaria (CITUB), echoed concerns about Bulgaria's economic performance. Kostov highlighted the necessity of achieving a growth rate higher than the European average to facilitate real convergence within the EU.

Addressing Bulgaria's aspirations to join the eurozone, economists underscored the significance of economic stability and growth. They noted that admission to the eurozone typically requires a minimum wage above 500 euros, a benchmark Bulgaria has yet to meet.

Velev projected a potential timeline for Bulgaria's eurozone accession, suggesting it may occur around 2025, albeit not necessarily at the beginning of the year. He stressed the importance of prioritizing sustainable economic growth over short-term fixes, such as borrowing.

Looking ahead, Velev expressed optimism about the impact of the new caretaker government, anticipating improved governance and stability. He emphasized the need for sustained management to address Bulgaria's economic challenges effectively.

In summary, Bulgaria's economic performance remains a topic of concern among economists, highlighting the urgent need for reforms to boost productivity, increase incomes, and enhance the country's competitiveness within the EU.

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Tags: Bulgaria, EU, economy, Eurozone

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