site.btaMedia Review: June 4

The topic of the convergence reports of the European Commission and the European Central Bank (ECB) on Bulgaria's readiness to adopt the euro, expected to be presented on Wednesday, dominate Wednesday's news media.

BULGARIA IN EUROZONE

24 Chasa quotes Nikolay Valkanov, Executive Director of the Modern Trade Association, as telling Nova TV that thus far, the only problem big retail chains have noticed since Monday’s introduction of price tags in both BGN and EUR is that some older clients mistake the price in EUR as a price promotion. The big supermarkets are trying this ahead of Bulgaria’s expected eurozone entry on January 1, 2026; the change in the price tags will become compulsory for all shops and markets on August 8, because the final decision on Bulgaria’s accession to the euro area is to be taken on July 8. The law requires both prices to be written clearly and with the same font and size.

On Bulgarian National Radio, journalist Plamen Hristov reported from Lovech (North Central Bulgaria) on the business' readiness to introduce the euro. The price tags in both BGN and EUR in big supermarkets have created serious confusion for some people in Lovech, especially older people. Some of them were returning products to the checkouts, because they had seen the lower price on the label but did not realise that it was in EUR. Owners of restaurants and retail outlets in the city are of the opinion that they are not ready for the changeover to the single European currency. The reason is the lack of an explanatory campaign. People insist that it should be explained to them what they are going to do with the currency conversion of cash registers, and with the receipts and invoices they have to issue. "We don't have any information from anywhere. We are not aware of how this thing will happen. We need someone to come out and explain to businesses what they should do and where prices will go - up, down, will we close restaurants and what will we do," said traders. They commented that everyone would be hurt - businesses and customers alike. Businesses also complained that they would have to bear the costs that would come as a result of the revaluation - new cash registers, invoices, menus in restaurants, etc. "We have no financial support from anyone," they stressed. "We are not ready. We don't want the euro. Second, the people do not want the euro. The majority of people do not want the euro. It will be very difficult. Most difficult for customers. It will be a complete cacophony. Let there be strict control, but there must be an explanation of how it will all happen," local business owners told Hristov. 

Nova TV's morning show asks separate businesses whether they are ready for the euro's introduction in Bulgaria. "The cash register reports only in BGN, and so does the programme. We are not prepared yet, but obviously we will have to get up to speed quickly. We don't know where to get the first euro banknotes and coins, so that on January 1, when the first customer comes in, we can give them back," said a bakery owner. Other traders also have questions about the so-called first euro packages. There are also concerns about whether all shops will be able to open on January 1, 2026. "It's not a matter of just switching the software on and off. You can imagine that if the company I'm working with is ready on December 31, I won't be ready on January 1. Neither will I have tested, nor will I have seen the software issues, nor will they be fixable. And imagine how a customer comes in and the software doesn't work, the drawer doesn't open," Galin Popov of the Association of Non-Food Retailers warned of the risks.

24 Chasa has an interview about the euro with Assoc. Prof. Mihail Gruev, head of the Archives State Agency, who argues that we should turn the euro debate around. Contrary to what some politicians claim, Bulgaria has not promised the EU that it will adopt the euro; quite the opposite, the EU has promised Bulgaria full integration provided the country meets certain conditions. “This is a political process: to take our place in Europe once and for all,” he notes. Instead, Bulgarian society is left with the wrong understanding that Bulgaria is being pressured by Brussels to adopt the euro, when it is Bulgaria demanding to join. It all began with Bulgaria’s bid to join the EU 20 years ago; now that all requirements have been met for the eurozone as well, “it is absurd for us to claim that we are not quite sure whether we want that, after going down this path for 20 years.” In his words, the euro and Bulgaria’s full integration in all EU structures have no alternative, and it is pointless to comment on that post factum.

Duma quotes Deputy Prime Minister and BSP - United Left Chair Atanas Zafirov as saying on Tuesday that there is a broad consensus in Bulgarian Parliament on the adoption of the euro, but in society things are still not that way. "Populist forces are stoking division. All of us in the coming months must make a real effort to allay these fears. This includes an adequate information campaign and measures on the part of state institutions," he argued at a meeting with representatives of the four employers' organizations on the challenges Bulgaria faces in joining the euro area. The Deputy Prime Minister stressed that Bulgarian citizens deserve to hear the expert voice and the real analysis, and here the role of employers is extremely important. "The debate is not whether or not Bulgaria should join the euro area, but how it is better to prepare and what are the main challenges facing Bulgarian economy by sectors," Zafirov added. BPS - United Left Floor Leader Dragomir Stoynev said: "It is no secret that there is anxiety in Bulgarian citizens and it is mostly from speculation, but the truth is that prices in the euro area are much more stable." In his words, the Bulgarian people will neither get poorer nor richer by adopting the euro.

Trud's front-page article reads that Alexander Bochev, Chairman of the National Real Estate Association, forecasts that real estate price will rise sharply this year, and next year, after the adoption of the euro, the price increase will continue but will be less sharp. That is what happened in Croatia, which joined the eurozone in 2023, and the forecast is for the same to happen in Bulgaria. In recent years, property prices in this country have risen by 9-15%. In 2025, the Association expects an 18% increase in property prices, the same as the increase in the first quarter of this year compared to the same period of 2024. In 2026-2027, the property market will return to the normal increase of about 10% a year, he added.

Mediapool.bg writes that the convergence reports on Bulgaria's readiness to join the eurozone are expected to be positive. The e-zine quotes European media saying the same. The European edition of Politico writes that the reports on Bulgaria are positive; the article reads that despite its internal political disagreements, Bulgaria has long shown commitment to joining the single currency, pegging its own currency to the euro as early as 1999, participating in the banking union from 2020 and making sure it has met all the gruelling economic criteria to become a member. Germany's Frankfurter Allgemeine Zeitung also writes that Bulgaria is fully ready to adopt the euro; the article reads that Russia has no interest whatsoever in Bulgaria's even closer integration into the EU and is therefore stoking opposition to the euro with disinformation.

On bTV's morning show, Economic and Social Council head Rositsa Roussinova commented that from here on, the conversation has to be, both in terms of people and in terms of business, what steps each of us needs to take. "First, let's overcome the fears of people who have concerns. And secondly, let's get through the transition period as quickly as possible so that we can then make the most of being a full member of the eurozone," she noted. Former economy minister Nikolay Vassilev said that Bulgaria could have entered the eurozone ten years ago "had the country decided to pull the trigger." In his words, the eurozone is the best thing that could happen to Bulgaria; it will almost complete the country's full Western integration after Schengen, the EU, and NATO, and it will make the country richer.

On Bulgarian National Television's morning show, the topic of whether Bulgaria is ready for the euro was discussed by financial experts, economists, and analysts. Credit consultant Tihomir Toshev said he does not expect changes in lending rates after the adoption of the single European currency. In recent years, banks in the country maintained high liquidity, there were low interest rates on loans and a boom in the property market. Bulgaria has been an island of low interest rates, and this will not change after the adoption of the euro, he forecast. Prof. Stoyan Marinov from the Varna Tourism Chamber said the euro's adoption will surely be good for Bulgaria's image in eurozone countries. Bulgaria will become more visible, it will be perceived as more secure. "In any case, the euro will affect their motivation to visit us. But the concerns are mainly related to the rising prices of goods and services that go into the tourist packages," he explained. Prof. Rumen Draganov, Director of the Institute for Analyses and Forecasts in Tourism, said that the tourism sector has been working in EUR since the single EU currency came into existence. "For tourism, it does not matter when and how the euro comes in, we are in this film," he added. Financial expert Levon Hampartzoumian said that thanks to the eurozone, economically active people will get a chance to be more efficient and grow a little faster. The rest will indirectly benefit from the efforts and results these people would achieve in companies, people, etc., he added. Economist Assoc. Prof. Krasen Stanchev said the euro's adoption will make Bulgaria more attractive to foreign investors. Prof. Svetoslav Malinov, political expert, commented that it is normal for there to be no consensus on the euro's adoption in Bulgaria. "We cannot have a consensus on anything, because we are a democratic society. If there is consensus in a country, it is either not democratic or there has been some national catastrophe that has made all the people equal in their misfortune and misery," he added.

ECONOMY

Trud has an interview with political analyst Slavi Vassilev about the controversial gas supply contract with Turkish company BOTAS, signed by the caretaker government in 2023. According to Vassilev, Bulgaria has been harmed not by the signing of the agreement but by the subsequent reluctance of a number of Bulgarian governments to use the advantages of this contract. Bulgaria is the only EU country which, thanks to the reserved capacity in the Turkish gas transmission network under the agreement, can become a buffer and a distributor of its own liquefied gas markets in Europe. "I would remind you that the signing of this contract was at the height of the war in Ukraine. The disastrous decision of Kiril Petkov's government to unilaterally suspend the contract with Gazprom forced then ruling Bulgarian President Rumen Radev to find salvation. And he found the best possible one - that is the reserved capacity of the Turkish gas transmission network with as many as five gas regasification terminals," the analyst explained. In his words, the problem therefore is not the contract, but the unwillingness of successive Bulgarian governments - those of Denkov, Glavchev and the current cabinet headed by Rosen Zhelyazkov, to use it. The reason is that at the moment, the Bulgarian market is supplied with about 2/3 of the natural gas it needs through the Greek gas operator DESFA, who sell Bulgaria Russian gas coming from Gazprom at the Turkish Stream inlet at the Strandzha compressor station. "It is good to note that the Greeks did not stop the contract with Gazprom in 2022, as we did, and have continued to be supplied with natural gas from Gazprom to this day. This chance was squandered for political reasons by then Prime Minister Kiril Petkov. That is to say, we are not taking advantage of the opportunity to use the reserved capacity in the Turkish gas transmission network, because the Bulgarian Government prefers to buy Russian gas through Greek and Bulgarian commission agents instead of using the infrastructure of BOTAS That is the case in a nutshell," Vassilev tells the daily.

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Capital.bg writes that the State-owned Maritsa East Mines report an impressive loss of BGN 270 million for 2024, compared to "only" BGN 135.7 million a year earlier. The company's final financial report for last year has only just been published and clearly shows that the company, which receives huge state "subsidies" in the form of various loans from the Bulgarian Energy Holding to cover its operations and pay salaries, is in a dire situation. The figures are such despite a total of BGN 1 billion being voted last year for land reclamation, which is spread over BGN 250 million between 2024 and 2027. "The decision for the record-high financial injection was taken just days before last year's general elections. The funds were allocated almost instantly by the Council of Ministers, which immediately transferred BGN 200 million, while the remaining BGN 50 million was ordered to reach the mines 'in the short term'. In practice, the company, which is entirely dependent on the activities of the mines in the complex, has failed to optimise the work in the mines and the administration despite the drastically reduced activity and the critical financial situation," the article reads.

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Telegraph has an interview with the Chairman of the Balkan and Black Sea Petroleum Association, Valentin Kanev, who says that Bulgaria has not had great success in attracting investment for conventional onshore research. In terms of gas consumption, the trends in Europe are the same as for the region - heavily influenced by renewables in recent times. All countries in the region - Bulgaria, Greece, Romania - have invested in large solar capacities, but gas is needed for balancing. In Bulgaria, gas consumption has not increased; it remains at the old levels, Kanev said. He is optimistic about there being gas and petroleum deposits in Bulgaria's section of the Black Sea, particularly in the Khan Tervel Block where Shell is prospecting. The prospecting in the Khan Asparuh Block, which is the biggest, continues as well, and he expects results on whether there is gas there to be announced within months.

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24 Chasa writes that there are 156,335 adult and able Bulgarians who are neither working nor studying, of whom 112,000 are aged under 29, and the State is trying to determine whether they are truly unemployed or are working in the grey sector and getting paid in cash. To that end, nine institutions are exchanging data to make a single electronic register of the unemployed between 16 and 65 years of age. The register will contain information on whether they have studied and worked and what, whether they have a disorder, whether they are in prison, and what is their current address, phone, and email so that once the register is completed, the inactive Bulgarians would be contacted by experts of the National Employment Agency and be activated on the job market. The activation consists of giving people information on available jobs, a consultation on whether a given position is right for them, and an offer for various trainings. Various mediators in Roma communities will be involved in this process as well. 

24 Chasa presents the everyday life of a nurse in Kyustendil, Ani Panayotova, 53, who works night and emergency shifts, has a second job to feed her family, and cares for hundreds of patients, including by staying two to three hours overtime on a regular basis, all for just BGN 1,500 a month. In Sofia, nurses’ salaries are somewhat normal to cover their main needs, but outside of the capital the situation is horrible: lack of funding leads to low salaries and a shortage of young nurses. Most are at a retirement age. That huge problem affecting the whole of Bulgaria is why medical professionals have been protesting for days, the article reads. They find it unjust that Sofia’s transport workers got a pay rise in May and so did police officers months ago. “We want the starting salary to be BGN 3,077 for all medical professionals in Bulgaria, and to pay more based on the workload,” Panayotova tells the daily.

POLITICS 

Segabg.com writes that Ahmed Dogan's MPs of the Democracy, Rights and Freedoms (DRF) face the danger of losing their only gain from their initial support for the Zhelyazkov cabinet - the leadership positions they received in parliamentary committees. The ruling GERB-UDF, BSP - United Left, and There Is Such a People have submitted proposals to remove the DRF representatives from such positions. No reasons have been given for this step. However, it is clear that since Dogan's MPs have abandoned the majority, the ruling party has no reason to let them head the committees. Moreover, the ruling majority are now counting for the Government's survival on the MRF - New Beginning, who are mortal enemies with the DRF, Sega recalls.

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On bTV's morning show, historian Spas Tashev and journalist Nina Spassova commented on the reason for the harsher tone between Sofia and Skopje. According to Tashev, the two countries do not have a bilateral issue; it was settled in 2022 with the so-called French proposal [which sets conditions to North Macedonia's entry in the EU that satisfy Bulgaria]. The problem is that Skopje has an active diplomacy that is trying to circumvent the conditions, while Sofia is not so active diplomatically. "The big problem is that only for lobbying Skopje has a fund of EUR 30 million. Journalists are bought, assistants in the offices of MEPs are bought, MEPs are bought directly," Tashev added. According to Spassova, North Macedonia's Prime Minister fears what the Bulgarian MEPs want - Brussels' report on North Macedonia's readiness to join the EU to include the words "modern Macedonian nation and identity". "There is nothing terrible in this because North Macedonia is a country that has existed for the last 70 years. Why does that offend them? They always try to say they have centuries of history. We see what Skopje itself looks like. But no matter how much they want to talk about it, there has never been such a country. Historically, it does not exist," the journalist argued.