site.btaConfederation of Independent Trade Unions Supports Introduction of Euro in Bulgaria as Soon as Possible

The Confederation of Independent Trade Unions in Bulgaria (CITUB) supports the introduction of the single European currency as soon as possible, the union's position states.

It is of key importance that the pricing of final goods and services is done in a transparent and market-based manner, the CITUB also said and expressed its readiness to be a guarantor of this process, together with other civil society organizations, and the goal is to prevent speculative and unjustified price increases.

The position states that the eurozone stimulates economic development, leading to growth in production and trade turnover, resulting in higher wages and higher domestic demand, which in turn is a main driver of real economic growth in Bulgaria.

The country's membership in the eurozone leads to a faster convergence of workers' incomes compared to the average European level, the Confederation of Bulgarian Trade Unions added, recalling that this thesis has been repeatedly confirmed by the EU member states that have already joined the Economic Monetary Union (EMU), and this applies in particular to the Baltic states (Lithuania, Latvia and Estonia), which have a similar economic and monetary system to Bulgaria. They have observed wage increases of 80% to 120% within six to seven years after accession.

The union recalled that the adoption of the euro eliminates transaction costs for currency conversion, which reduces the costs of Bulgarian households when traveling abroad.

The eurozone is the last step of European integration, which allows for greater synchronization of labour demand and supply, which creates conditions for a natural increase in workers' incomes. The Bulgarian monetary system is already synchronized with the other representatives of the EMU. Bulgaria has been part of the EU banking union for five years. This means that commercial banks are already in the eurozone, this country’s money and savings are there, which is a guarantee of their security, the CITUB pointed out.

It is an indisputable fact that the currency board has preserved Bulgaria's financial stability over the past 27 years, but at the same time it limits the potential of the Bulgarian economy, slowing down the real convergence of incomes. So the sooner Bulgaria takes the step to exit the Currency Board and join the eurozone, the faster it will achieve wage growth, the CITUB said.

According to the CITUB, the final effect of Bulgaria's entry into the eurozone will be an increase in the incomes of Bulgarian citizens. This will improve their well-being, provide decent wages and a happier future.

“Anyone who tries, at the end of many years of efforts, to prevent the adoption of the single European currency clearly has other goals and interests than those of the workers,” the position states, noting that the union will not allow populism and political calculations to affect the well-being, economic and social security of Bulgarian workers.