Bulgaria is in a very solid starting position for joining the eurozone, as it meets all the nominal criteria for adopting the euro, including the inflation and budget deficit requirements. This was stated by the Governor of the Bulgarian National Bank (BNB) Dimitar Radev in a speech during a business breakfast organized by the American Chamber of Commerce (ACC) in Bulgaria and the British-Bulgarian Chamber of Commerce (BBCC), which is being held today at the capital's InterContinental Sofia hotel.
The theme of the event is "Financial Policy and Competitiveness of the Bulgarian Economy", reported novini.bg.
Membership in the eurozone has the potential to be a counterpoint to the negative processes in the global economy, respectively, it is a major economic, political and financial priority of Bulgaria, the BNB Governor pointed out.
According to Radev, the final phase of Bulgaria's preparations for joining the eurozone is proceeding relatively smoothly, and this event can be a counterpoint for our country to the effects of negative global processes.
"From the point of view of logistics and technical preparation, the BNB and The banking sector is fully prepared for both the exchange process and for actions in the euro area. With the latest changes to the BNB Law in March, the legal convergence process was finally completed," Radev said.
"Regarding the nominal criteria, we have been consistently fulfilling the price stability criterion since the beginning of this year. The 2024 budget, which we expect to be announced today or tomorrow, has been implemented within the planned deficit. In terms of currency stability, debt to gross domestic product and interest rates on long-term securities, we have traditionally met the criteria, and with a significant positive margin," Radev pointed out.
According to him, these developments put the country in a very solid starting position for joining the eurozone, and against the backdrop of global uncertainty, integration into strong unions such as the eurozone is gaining even greater importance.
"This is about deep, multi-layered positive effects on both competitiveness and the medium- and long-term economic prospects for the country," Radev said.
The BNB Governor pointed out that one of the effects that can be expected to appear in the short term is better accessibility and lower cost of financing for both the public and private sectors.
"The reasons for this are mainly two - the expected increase in the country's credit rating and the decrease in the mandatory minimum reserves of banks", Radev explained.
He pointed out that in a more strategic plan, membership in the eurozone also means greater price economic stability, as well as greater security, and these factors are of key importance, especially in a complicated geopolitical environment.
"All these elements would improve the attractiveness of Bulgaria as an investment destination and would create prerequisites for accelerated investment activity and higher growth of potential gross domestic product. Therefore, the upcoming accession to the eurozone is not just an important step in our European integration, it is a strategic opportunity to increase the competitiveness and long-term economic potential of the country“, said Radev.
The BNB Governor noted that the positive effects in the short and long term would be fully manifested only if our country pursues a reasonable macroeconomic policy, restores discipline in the management of public finances and implements long-delayed structural reforms.
"For Bulgaria, the final stage of the process of accession to the eurozone and effective membership have the enormous potential of counterpointing the negative global stories. This rightfully places the eurozone as the main economic, political and financial priority of today", said Dimitar Radev.
The format of the business breakfast is intended for members of the American Chamber of Commerce in Bulgaria and the British-Bulgarian Chamber of Commerce, with the event being open to the media only in its introductory part. In addition to Dimitar Radev, the Minister of Finance Temenuzhka Petkova also delivered a speech.
The event was opened with short addresses by the CEO of ATK in Bulgaria Ivan Mihaylov and the CEO of BBTK Desislava Miteva.