site.btaLabour Minister: Euro's Introduction Will Not Cause Any Shocks in Incomes, Pensions

Labour and Social Policy Minister Ivanka Shalapatova does not expect the euro's introduction to cause any shocks in Bulgarians' incomes and pensions. On Bulgarian National Radio on Sunday, she explained that loans and deposits will be recalculated automatically, while incomes and social pensions will be recalculated to people's benefit. "The transition to the euro will not be so painful, we do not expect shocks in purchasing power," she said.

The adoption of the single European currency would be a good step toward sustainable development, she added. There is no cause for concern, because Bulgaria's financial state is good, the government debt amounts to 22% of GDP, which is far below what is allowed in the EU, the Bulgarian currency's exchange rate is stable; what remains to be met are the criteria for price stability. "We undertake measures to reduce inflation and get people informed," Shalapatova noted, calling on people to not give in to fake news but use adequate sources of information.

In Bulgaria, the pension system leaves the impression that it is not stable, that the amount of pensions is inadequate, she commented. "We will propose legislative changes to Parliament, we are beginning an analysis, so the decisions to be taken based on the analysis would guarantee a more adequate pension system," the Labour Minister said. No increase of the insurance contribution for retirement is planned for now.

Asked if she will keep her post after the planned rotation in the Cabinet next month, Shalapatova said she has not received signals from Prime Minister Nikolay Denkov and Deputy Prime Minister Mariya Gabriel that someone else will become Labour Minister.