Bulgaria decided not to seek final clearance from the European Central Bank (ECB) ahead of joining the eurozone, according to Euractiv.
Finance Minister Temenuzhka Petkova said on Thursday that she would not ask the European Commission and the ECB to provide a report on the country’s readiness to join the eurozone.
Apart from meeting the unemployment and debt-to-GDP criteria, the only criterion Bulgaria does not meet is inflation, despite progress in recent months. Petkova stated that she would not request a report until the country fully met the inflation criterion.
Bulgaria still does not meet the price stability criterion by 0.1 percentage points. This is an extremely small shortfall, but we will submit a request for a convergence report the moment we fully meet this criterion.
The average annual inflation rate in Bulgaria in 2024 stands at 2.6 per cent. However, the level that needs to be achieved to join the eurozone is 2.5 per cent, according to Eurostat.
The decision not to ask for final approval may indicate divisions in the ruling coalition. The country formed a government last week, but coalition members disagreed on many issues, including the timing of the country’s accession to the eurozone.
Former Prime Minister Boyko Borissov’s GERB party favours rapid eurozone accession, whereas the Bulgarian Socialist Party and the People’s Party argue that the country should take the step “when it is ready.”
Meanwhile, many Bulgarians express concern that the introduction of the euro will lead to higher prices. Public opinion is divided, despite attempts to explain that the risk is minimal.
