EU political leaders discourage Bulgaria for early eurozone entry.

By bne IntelliNews February 15, 2010
EU political leaders sent a discouraging massage regarding the countrys ambition to adopt the single currency in the next 2 to 3 years. This became clear in a statement of PM Boyko Borisov in a TV programme on Friday night. This message was communicated in talks with ECB president Jean-Claude Trichet, Germany s Chancellor Angela Merkel and France s President Nicolas Sarkozy. This confirmed our expectations that political support for admitting a new euro area member in the face of a struggling government in neighbouring Greece to regain control over its finances will be insufficient for a successful Bulgarian application. However, it is still possible, and we believe beneficial, for the country to apply for the first phase of the accession to the monetary union, i.e. membership in the exchange rate mechanism (ERM II). In the ERM II the country has to maintain a stable exchange rate to the euro for at least 2 years, which in conditions of currency board will not pose any challenge. In the meantime, providing a clear objective for euro adoption would anchor expectations regarding fiscal and monetary policies of the government.          

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss