site.btaSpeech by Atanas Pekanov on Euro Changeover: Full Text

At today's meeting of the Council of Ministers, legislative changes were adopted regarding the Coordinating Council for Bulgaria's preparations for euro area membership. Through them, the composition was revised and the Deputy Prime Minister in charge of EU funds management was included as a member of the Council in order to more effectively implement the practical preparation of Bulgaria for the future euro area membership. The aim is to carry out successful preparations for accession to the euro area in accordance with the National Plan for Euro Adoption adopted by the regular government with January 1, 2024 as the target date. It is our responsibility as caretaker Cabinet to keep all processes moving, without stopping and without delay. 

For Bulgaria, all processes for closer European integration - our entry into Schengen, our entry into the euro area, our entry into the OECD - remain a top priority. 

Along with the implementation of legal, economic and structural measures to strengthen the competitiveness and resilience of the Bulgarian economy, the path to a smooth adoption of the euro is also linked to thorough planning and practical preparation by the administration, businesses and citizens. This implies serious organizational, coordination and expert work.

As is well known, a national plan has been adopted for the introduction of the euro in the Republic of Bulgaria and it provides a basis for the operational work for the changeover. And we, alongside the Minister of Finance and the Governor of BNB, will work within the Coordination Council to ensure that this happens successfully and effectively in the coming weeks until a regular cabinet is elected. 

There are specific tasks that need to be moved forward. They have been assigned to seven working groups. The Deputy Prime Minister for EU funds management will also be the chair of the working group for Macroeconomic Analysis and Public Finance, which is responsible for preparing analyses on how economic policy and the economic situation in the country will be affected by Bulgaria's entry in the euro area. 

In addition, there are working groups on Public Administration; Non-Banking Financial Sector; Money, Payment Infrastructure and Credit Institutions; and Non-Financial Sector. A working group on consumer protection is of key importance as it will work to correct price recalculation, double price labeling, control of the exchange and rounding of prices from the lev to the euro, consumer information.

The work of the working group on communication is also very important as it has to develop the communication strategy for the euro changeover. The information campaign will be aimed at providing accessible, comprehensible and comprehensive information on the single European currency, on Bulgaria's readiness to adopt it, and on the process of the changeover from the lev to the euro. The campaign will also pay close attention to consumer protection measures. Good information and education on the euro will help to dispel unjustified fears of price spikes and ensure that all preparations run smoothly. The campaign will be carried out in a way that will make sure it reaches out to all parts of society.

A temporary inter-ministerial working group has also been set up to draft a bill on the introduction of the euro in Bulgaria. When the bill is ready, it will, of course, go to Parliament, which must take the subsequent decisions.

There are also significant political and reputational benefits to joining the euro area. The adoption of the euro as the national currency will be linked to the elimination of transaction costs, as well as of some costs for businesses. It will improve the investment climate in our country, at a time when much manufacturing will be shifting closer to Europe. It will bring more transparency in pricing. It will bring us institutional convergence with other countries in Europe - we can look at it as one mechanism to get important reforms going again in our country.

Europe and the world are going through turbulent times. In view of these geopolitical turbulences, it is important for Bulgaria not to remain outside the processes, not to remain in the periphery again, but to aim to be part of the core of the European Union.