site.btaBNB Deputy Governor: Eurozone Benefits Will Not Come Automatically
Bulgarian National Bank (BNB) Deputy Governor Petar Chobanov said the main challenge facing Bulgaria as a eurozone member from January 1, 2026 is that the benefits of the euro will not arrive automatically as a gift, without the state making efforts to improve institutions and encourage supply-side growth. He addressed a forum on "Eurozone: Equations and Solutions 2025", organized in Sofia on Tuesday by Bulgaria ON AIR and Bloomberg TV Bulgaria.
"We cannot automatically expect significant positive effects without putting in the effort to achieve them, and this is the main challenge," Chobanov said.
He stressed that, from the perspective of economic and financial ratios, Bulgaria has grounds to expect its credit rating to be raised again, as already happened following the announcement that Bulgaria would become the 21st eurozone member. However, this will not occur automatically. Credit rating agencies continue to identify the functioning of state institutions as a key issue for the Bulgarian economy, said the BNB Deputy Governor.
A potential upgrade of Bulgaria's credit rating to 'A' would open up new opportunities, which could be used to shift the focus towards investment and promotion of the supply side of the economy. Chobanov added that, in light of rising incomes in recent years, the focus should move from boosting demand to encouraging investment and supply, in order to create a higher base for growth.
He also commented that, as an economic bloc, the EU continues to lag behind its main competitors, the US and China. Regarding fiscal policy, he expressed the view that 2026 is unlikely to see fiscal consolidation in the EU as implementing unpopular reforms does not appear realistic at this stage.
/RY/
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