site.btaAdopting the Euro Is a Strategic Opportunity for Bulgaria - Association of Industrial Capital in Bulgaria Chair

The adoption of the euro is more than a currency shift: it is a strategic opportunity to boost Bulgaria’s competitiveness and investment appeal, said Rumen Radev, Chairman of the Management Board of the Association of Industrial Capital in Bulgaria (AICB), in an interview with BTA. Every second company among AICB’s members expects real improvements in its operations following the adoption of the euro, Radev emphasized.

The final decisions regarding Bulgaria's accession to the eurozone as of January 1 next year are on the Tuesday agenda of the European Parliament in Strasbourg and the Council of the EU in Brussels, after more than 20 years of the country moving closer to the currency union.

By joining the eurozone, Bulgaria will eliminate transaction costs, gain access to cheaper financing, improve the business environment by reducing macroeconomic risks through the pan-European protection mechanism, and reduce currency risk for companies, said Radev who is also the rotating chairman of the Association of the Organizations of Bulgarian Employers (AOBR).

“The expected effect on the national economy from the saved costs solely from currency conversion exceeds one billion leva annually. In addition, entry into the eurozone will give our country a real opportunity to fully participate in the decision-making processes concerning one of the most influential global currencies, which will increase its political weight both within the European Union and globally. This is not only in the interest of business—it benefits our entire society, including opponents of the euro, whether their opposition is sincere or hypocritical,” Radev commented.

“When we talk about 'benefits for citizens,' we must keep in mind that the aforementioned advantages apply fully to them as well. We know very well - and have stated it in our memorandum of cooperation with the government on euro adoption - that public concerns are related to whether potential unfair trade practices and price speculation will be prevented. It should be noted here that the vast majority of unfair trade practices do not stem from the introduction of the euro, but rather are justified by it,” added the AICB Chairman and rotating AOBR Chairman.

In response to a question about when these effects might first be felt by entrepreneurs and citizens, judging by the experience of other European countries that have already adopted the euro, Radev pointed out that many of the positive effects will be felt immediately. “The elimination of transaction costs will happen practically right away. The reduction of currency risk will also become a fact very quickly. I expect a positive outlook in the evaluation of our country by reputable credit rating agencies,” he stated. “This very process - the increased attractiveness of our country as an investment and production destination - leads to the improvement of the business environment. This is what we observe in the practices of other European countries - it is clear that none of them has suffered from the introduction of the euro, regardless of when it took place. But in the end, it is understandable that people have concerns when facing such a monetary change,” further commented the Chairman of AICB and rotating Chairman of AOBR.

“Adopting the euro is the best economic news for Bulgarian business in recent times,” Radev concluded. “But we must not forget that sustained growth depends on a functioning legal system, sufficient human resources, and global economic stability.”