Bulgaria has a good chance of joining the eurozone, a Bulgarian financial analyst told Anadolu Agency ahead of the European Commission and European Central Bank (ECB) decision on whether the country meets the criteria for adopting the euro.
Preslav Raykov, a financial analyst from Sofia, said Bulgaria’s six-month budget deficit and inflation figures confirm its eligibility to join the eurozone this month, adding that the country is “fully prepared” with its administrative, legislative and financial systems.
This week, the EU will announce whether Bulgaria meets the Maastricht convergence criteria, which measure price and exchange rate stability, the state of public finances and long-term interest rates.
Raykov acknowledged that inflation in Bulgaria had risen in recent years due to the pandemic and the war in Ukraine, but stressed that price stability and public finances remained within EU thresholds. He added that the country’s financial system had long operated with a fixed exchange rate against the euro.
Raykov said Bulgaria should have joined the eurozone ten years ago but faced repeated delays for “political reasons.” If the move is not made by the beginning of next year, “it will be postponed again,” he warned.
Bulgaria’s economy is “underperforming” and the introduction of the euro will boost growth, Raykov said. He also dismissed fears that the currency change would cause inflation.
“Fears about inflation are not based on data, but are fears created for political purposes by opponents of the eurozone and Bulgaria’s development in Europe,” he said, adding that the introduction of the euro would attract more international capital to the country, creating new jobs.
