The Bulgarian government has abandoned its plans to adopt the euro in January 2024. Finance Minister Rossitsa Welkowa admitted on Friday that the country does not meet the necessary inflation criteria and has not made the necessary legislative changes. Bulgaria joined the European Union in 2007.
The country is already in the European System of Fixed Exchange Rates (ERM-2) – an important preparatory stage towards the introduction of the euro. This is to ensure that the national currency does not fluctuate too much. The eurozone currently has 20 members – Croatia was the 20th country to join in January.
‘We do not meet the inflation criteria’
“We fell short of our promises when we joined the ERM-2 and do not meet the inflation criteria,” Welkova said. Bulgaria is the poorest member state of the EU. The country is aiming to join the eurozone because it expects more investment and more credit security. However, Bulgaria is facing political crises. The fifth parliamentary elections in two years will be held in April of this year.
Join the euro on January 1, 2025?
Welkowa also said that if there is no clarity on the introduction of the euro in the next six months, it could negatively affect the country’s creditworthiness. Since the government will not publish a convergence report at the end of February, the planned implementation date of 1 January 2024 can no longer be adhered to. Bulgaria may submit the report after July if it meets the criteria. If the country has the support of member states, it could join the eurozone by January 1, 2025, she added.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
