site.btaVice President Iotova: Very Serious Public Debate Needed on Pros and Cons of Introducing the Euro

A serious public debate is needed on the pros and cons of introducing the euro, the risks involved and how they should be overcome, Vice President Iliana Iotova said in Chirpan, Southcentral Bulgaria, where she is attending this year's Lavender Festival.

According to her, two things are quite alarming. One of them is the announcement by the National Revenue Agency (NRA) that only two weeks after the positive convergence reports, there has been a significant increase in prices in Bulgaria. “Today, the executive director of the NRA, Rumen Spetsov, used the word ‘speculation,’” Iotova said, reminding that the fight against speculation was one of the reasons President Rumen Radev gave for holding a referendum on the euro adoption. She pointed out that Bulgarian citizens must be sure that inflation will not rise sharply, that there will be no serious price increases, and that incomes will largely be able to compensate for any price increases. 

The second worrying fact is the possibility of tax increases next year, the Vice President added. “It is no coincidence that the chairman of the Fiscal Council and former finance minister Simeon Dyankov spoke about the need to increase the value-added tax (VAT) and it is no coincidence that he brought up the old topic of increasing the excess profits of banks,” Iliana Iotova noted. According to her, these are the “first probes” that the majority is making with a view to an upcoming tax increase. 

The Vice President emphasized that public discussion is necessary because Bulgaria continues to be the country with the lowest income in the European Union, with the highest threshold of poverty risk for the population, and because the country has not yet reached even the average income level within the EU. “Instead of a lot of noise and PR, it is better to get answers to these very questions,” Iotova said. She expressed the opinion that a sincere and honest conversation with Bulgarian society, even in this situation, could reassure people.

According to Iotova, the news that the EU Council on Economic and Financial Affairs (ECOFIN) supported Bulgaria's accession to the eurozone at the beginning of next year were expected. The pre-planned procedure is being followed, and the decision of the EU Council is also expected, she said. Iliana Iotova noted that she does not expect any changes or surprises—the most important thing was the convergence reports, and from there on, the path is formal. 

She also noted that for an important decision such as the adoption of the euro, the people should have been asked. The people were denied the opportunity and the right to be asked, she said. “It is clear that the ruling majority tried to suggest that we Bulgarians are not smart enough to understand all the pros and cons of introducing the euro. This humiliation we are suffering at the hands of those in power cannot be explained and cannot be justified,” said the Vice President.