site.btaReliable Public Finances Crucial for Sustainable Growth and Stability, Says BNB Governor at IMF Meeting in Washington D.C

Credible public finances are the foundation of sustainable growth and the anchor of stability and confidence, Dimitar Radev, Governor of the Bulgarian National Bank (BNB), said in his remarks at the Policy Dialogue of the European Department of the International Monetary Fund (IMF), during the annual meetings of the IMF and the World Bank in Washington, D.C., last week, according to a BNB press release Tuesday.

Radev stated that he fully shares the main conclusion of the IMF's Regional Economic Outlook report, that Europe faces a complex and uncertain environment in which preserving stability and advancing reforms must go hand in hand.

He shared four key observations on the prospects and policy challenges facing Europe, focusing particularly on Central, Eastern and South-Eastern Europe. These observations covered the resilience of the region's economies, demographic and structural factors, the challenging external environment and fiscal policy challenges. He stated that the report correctly emphasizes the importance of responding to the need for increased spending without endangering fiscal sustainability, a balance which remains challenging in many parts of Europe. He emphasized that prudent fiscal policy does not mean austerity, adding that higher incomes and greater investment are necessary, but without discipline and efficiency, they could undermine the stability they are supposed to strengthen.

In more general terms, Radev said that the challenge facing Europe is not only to withstand uncertainty, but also to turn it into a source of renewal. This means completing the single market, deepening capital markets and accelerating reforms that strengthen Europe's competitiveness and sustainability. He added that European policy is all too often reactive and fragmented. According to him if Europe acts decisively and in a coordinated manner, it can transform its diversity into a strength. However, if it hesitates, it risks losing ground in an increasingly competitive world.

Regarding Bulgaria's upcoming accession to the Eurozone, Dimitar Radev emphasized that this is a significant economic and strategic milestone that will bolster the Bulgarian economy within Europe's institutional and financial framework. He believes that joining the eurozone marks the beginning of a new phase, involving greater responsibility for maintaining fiscal discipline, strengthening institutions, and pursuing consistent reform policies.

Radev concluded with remarks on Bulgaria's upcoming adoption of the euro from January 1, 2026. "This is not only an economic milestone — it is a strategic decision that anchors our economy more firmly within Europe’s institutional and financial framework. It will enhance our resilience to external shocks and reinforce our capacity to contribute to Europe’s overall stability and strategic autonomy. But joining the euro area is not the end of a process; it is the beginning of a deeper responsibility — to maintain fiscal discipline, to strengthen institutions, and to pursue reforms with consistency. These are the principles on which Bulgaria — and our region as a whole — should continue to build convergence, resilience, and sustainable growth in the years ahead," he said.