Bulgaria views Eurozone entry by 2025 as realistic

January 2025 is practical for Bulgaria to join the Eurozone after the original plan of joining in 2024 was postponed due to inflation and a lack of political will to adopt the necessary legislation, according to the Bulgarian government.

The authorities in Sofia had to postpone their intentions to enter the Eurozone because of high inflation and the lack of political will to adopt the necessary legislation quickly.

After the election of the new Euro-Atlantic government in June, legislative reforms accelerated.

“We are the second country with the lowest ratio of public debt to gross domestic product in the EU – about 22%. All the while, we manage to keep the budget deficit around 3%, and there are no indications that we will lose control over the debt,” Prime Minister Nikolay Denkov said during the Meeting of business with the government conference organised by Capital on Tuesday.

The rapid reduction in inflation may also help Bulgaria, as the country recorded a deflation of -0.1% for September. At the same time, lower inflation may lead to lower-than-planned revenues for the state and increase the budget deficit.

Bulgaria’s economy is forecast to grow by 3.2% in 2024, driven by the absorption of EU funds under the Recovery Plan and stable domestic consumption, the Finance Ministry said.

According to Deputy Prime Minister and Foreign Minister Mariya Gabriel, Bulgaria’s entry into Schengen and the Eurozone will allow the country to participate in European decision-making.

Gabriel was Bulgaria’s EU commissioner but stepped down in May when her party, GERB, nominated her for prime minister. She is expected to become prime minister in March next year when the rotation of prime ministers takes place.

She added that the government should allay people’s fears about adopting the euro, which are mainly related to expectations of price increases.

“Next year, we have the chance to explain in the best possible way the benefits of joining Schengen and the Eurozone,” Gabriel said.

(Krassen Nikolov | Euractiv.bg)