Bulgaria should not join EU's banking union - central bank governor.

By bne IntelliNews September 18, 2012
Joining the EU's banking union will not be beneficial to Bulgaria at the current stage, central bank governor Ivan Iskrov said. Although the central bank supports the idea of higher integration and governance within the euro area, accession to the banking union would entail a unilateral transfer of considerable national sovereignty to Frankfurt and Brussels. Introduction of a common tax policy for all EU member countries is also not in Bulgaria's best interest as coordination of the tax policies will hurt the competitiveness of the economy and compromise the freedom to pursue an adequate economic policy. The central bank backs the sovereignty of the country's tax policy, including the low tax burden, which is an important economic advantage of Bulgaria. Last week, Austrian central bank Governor Ewald Nowotny, said that Eastern European countries-members of the EU should have the option to join the bloc's banks supervisory body. Western banks have a wide presence in Eastern Europe, which justifies opening the single supervisory mechanism programme also to countries which have not adopted the euro currency yet. Under the proposed by the EC package for banking supervision in the Eurozone, the ECB will be in charge of supervising the euro area banking system.
Notice: Undefined index: social in /var/www/html/application/views/scripts/index/article.phtml on line 278

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