site.btaBelgian Press: Bulgaria’s Eurozone Accession to Boost Black Sea Tourism

Bulgaria’s forthcoming accession to the eurozone as of January 1 will have a particularly strong positive effect on the development of tourism along the Black Sea coast, one of Belgium’s most influential French-language daily newspapers, La Libre, reported on Monday. The publication underscores that Bulgarian seaside resorts are highly valued by European tourists and account for around 8% of the country’s gross domestic product.

Under the headline “The EU’s Poorest Country Abandons Its Currency in Favour of the Euro”, the newspaper presents assessments by Bulgarian observers who argue that the country needs at least one to two years of stable governance in order to truly feel the benefits of adopting the single European currency. It cites data from a Eurobarometer survey showing that 49% of Bulgarian citizens are not convinced that joining the eurozone is a positive step, with concerns most pronounced among people in smaller towns and rural areas. Among the main fears are a possible rise in inflation and ongoing political instability.

The article says that during the summer a protest movement called for preserving the lev, “at the initiative of far-right and pro-Russian parties that play on Bulgarians’ fears of rising prices.” It adds that several successive Bulgarian governments have worked toward introducing the euro as a way to stimulate the economy, deepen integration with Western Europe, and shield the country from Russian influence.

The piece points out that Bulgaria is facing serious challenges in the aftermath of protests that led to the fall of a government that had been in office for less than a year, as well as on the eve of new snap parliamentary elections – the eighth in the past five years. It quotes Boryana Dimitrova of the Alpha Research polling agency as saying that issues surrounding the euro’s introduction are likely to be exploited by politicians with anti-European views.

The article also recalls an assessment by European Central Bank President Christine Lagarde, who said that eurozone accession would provide Bulgaria with easier money transfers, lower financing costs and more stable prices. According to her, small and medium-sized enterprises would save around half a billion euros in fees, while any observed increase in prices would be short-lived.

At the same time, La Libre cites statistical data showing that food prices in Bulgaria rose by 5% year-on-year in November, twice the average level in the eurozone. It also notes a significantly higher increase in real estate prices, up 15.5%, nearly three times the growth seen in euro area countries.