When is bulgaria joining the euro

The Minister of Finance stated that in case of possible introduction of euro as the only means of payment in Bulgaria, the levs will be replaced by European banknotes at the current fixed exchange rate set by the Law of the Bulgarian National Bank. In this case, however, the words of the Minister of Finance are not a legally binding state commitment, so according to some experts there must be some guarantees that If there is a proposition for another exchange rate, the Bulgarian government would refuse entry into the euro area.

Another important detail is that according to the draft Plan, when the euro is introduced, in cases where due taxes and fees cannot be accurately converted according to the rounding rules, they will be rounded down and payments to citizens will be rounded up.

This rule should not apply to payments and debts to the State arising from infringements in which the standard rounding mathematical rules apply. With regard to loans in BGN, it is written that the introduction of the euro will not change or cancel the validity of existing contracts. The value of the lev will be equivalent to the value in euro, converted by applying the irreversibly fixed exchange rate between the lev and the euro. Financial analysts also comment that joining the euro is an economic but also a political process.

There will be no transition period for these accounts. This is a quick and extremely convenient way to exchange levs for euros, without a special commitment for the account holder himself. Bulgaria meets the nominal criteria for joining the euro zone at present and expects to be compliant when the euro is adopted, despite eventual inflationary pressures as it converges with the richer euro zone economies.

That presupposes, however, that the reformers have political control. And new elections are scheduled for November, the third general election this year. It is completely unclear whether Finance Minister Vassilev and his fellow cabinet members will be able to carry on their cleanup efforts. And that would be a disaster for Europe. The long-time head of government in Bulgaria single-mindedly eroded democracy in his country.

He made inroads on judiciary independence and handed out public contracts to Bulgarian oligarchs. Because he was more discrete about it than the governments in Poland and Hungary, Borissov was largely able to avoid censure from Brussels or Berlin. His legacy will be with the country for a long time. Many problems that Bulgaria faces cannot be quickly solved even if the motivation is there. One of the greatest hurdles, say civil rights activists and anti-corruption initiatives, is Prosecutor General Ivan Geshev.

As long has he continues to block corruption investigations and protect both politicians and oligarchs, nothing will fundamentally change, says Adela Kachanova of the Bulgarian Helsinki Committee. On the economic front, many things are going worse than the numbers might lead one to believe. The country did experience a decade of strong growth starting in , but the economy has been significantly weaker ever since the global financial crisis.

In the capital of Sofia, a small, yet highly productive software industry is developing, but otherwise, tourism plays an outsized role in the economy, as is the case for many structurally weak states in Southern Europe. More than anything, though, Bulgaria is suffering from a mass exodus of well-educated workers. Meanwhile, many of the young men and women who have remained in the country have neither a job nor adequate training.

By Cristian Gherasim. Of all eight non-euro EU member states, Romanians top the chart of single-currency favourability, with 75 percent wanting the euro switchover - up from 63 percent last year. According to the Flash Eurobarometer , Romanians is followed by other eastern and central European nations, with percent of Hungarians, percent of Croats and percent of Bulgarians favouring joining the single currency.

Watch our editor-in-chief Koert Debeuf explain the reasons in this second video. The survey was carried out in seven member states that have not yet adopted the single currency: Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania and Sweden. Denmark has decided not to join, having negotiated an opt-out. There is wide variation at country level: three quarters are in favour of introducing the euro in Romania, but in the Czech Republic and Sweden, a majority of respondents are against the idea of introducing the euro", the survey finds.

Across all countries, except the Czech Republic, there has been an increase in the proportion of those in favour of introducing the euro, compared to Yet, most respondents in each country think introducing the euro will increase prices and are concerned about abusive price-setting during the changeover.

While Romanians lead in terms of favourability towards the euro they are also much aware of their fiscal unreadiness, with 69 percent of the population saying that their country is not prepared to join the eurozone. In order to become part of the single currency, a country must meet a set of criteria, with Romania no longer fulfilling the requirements - according to last year's European Commission report on euro convergence.

To join the eurozone an EU member state must have price stability, sound and sustainable public finances, exchange-rate stability and sustainable long-term interest rates. Romania has moved back and forth on various phases of the accession process over the past 14 years since it became part of the EU, outlining plans and setting numerous deadlines for joining the eurozone. The country lags behind in its readiness to adopt the single currency. Romania previously set as a deadline to join the eurozone but the odds are slim for that to happen.

Year Statement type Consolidated Non-consolidated. Bulgaria to be ready to adopt euro in - c-bank. Author Aleksia Petrova. Share this story. Facebook Twitter Linkedin Email. SeeNews in Brief.