site.btaUPDATED PM Zhelyazkov: Eurozone Debate in Bulgaria Is Mainly Political

The debate on the introduction of the euro and Bulgaria’s membership in the eurozone is more of a political rather than an economic or social issue, Prime Minister Rosen Zhelyazkov said here on Thursday at an event within the National Information Campaign for the Introduction of the Euro in Bulgaria. Zhelyazkov noted that Bulgaria’s eurozone membership is the final step towards full integration into the structures and systems of the European Union.

“The topic of the euro has become the subject of a serious political debate. In fact, one could say that at one point the euro was the ‘cherry on top’ of the political debate,” he noted and pointed out however that with the adoption of the euro, Bulgaria will become part of a nearly 400 million-strong market. "We will not accept a foreign currency, we will accept our European currency, which will allow Bulgaria to be a more complete participant in the single European market," Zhelyazkov stressed.

Among the benefits of adopting the euro, he highlighted stability and predictability, reduction of currency risks, as well as lower transaction costs, which will be felt by anyone who actively trades and participates in economic turnover. The Prime Minister emphasized that economic integration should in no way be left behind as a reason, as the euro promotes integration between Member States and largely reduces the differences that exist in Europe for no other reason than historical and geographical reasons. Zhelyazkov recalled the Greek financial crisis in 2009 and added that if Greece had not been part of the eurozone at the time, the events would have developed in a fundamentally different way.

"Currently, thanks to all the mechanisms that exist in the eurozone, which were learned as lessons after the financial and debt crisis, and the lessons we learned from the COVID-19 crisis, show that the eurozone is much more vital and protects Member States much better from challenges," he stressed. Zhelyazkov also pointed out that there are other advantages of Bulgaria's membership in the eurozone, which, however, can also be considered as challenges. He gave the example of financial discipline, which he noted as an advantage, as it prevents reaching the temptation of accumulating debt and deficit. The Primer Minister pointed out that in the eurozone, financial discipline is clearly defined with specific ceilings, which represent an advantage and a challenge for each Member State.

"The eurozone always provides an opportunity for political stability, an in cases like ours, it can lead to political stability even when it is (just a) part of the political debate, Zhelyazkov said. He emphasized that the possibility of targeted investments in the regions is encouraged by the fact that the euro is the passport that a country meets other financial criteria as well. The Prime Minister also recalled Mario Draghi's report on the competitiveness of the European Union, which addresses the problems facing the EU, including low competitiveness, slow productivity, inequality between individual countries and regions and topics related to security in Europe. "All this shows that in the new geopolitical environment, correct political solutions must be found that are not reactive to the problems that accompany us today, but must look much further ahead," Zhelyazkov commented.

He stressed that this process will not be easy and must be managed with all the mechanisms at the disposal of the State, including prevention and sanctions. He noted that the process might not carry a high political image, but it is for the good of every Bulgarian, as the long-term benefits are much greater than the short-term PR actions with which certain political forces are trying to quell people's fears. Zhelyazkov emphasized that the point of these information meetings is to overcome the fears of ordinary citizens about the process of introducing the euro, adding that in a year, this period will be viewed in a completely different way.

The Prime Minister concluded by saying that the country's administrative systems are prepared for the introduction of the euro, as are the financial systems as well and the banking and non-banking financial sector. "We have all the prerequisites for the process to go smoothly," he stated, adding that political stability is important, which the government is doing everything possible to ensure.