site.btaChallenges, Opportunities of Bulgaria's Euro Area Accession Discussed at Forum in Sofia

The challenges and opportunities of Bulgaria’s entry into the euro area were discussed here on Tuesday at a forum titled "Euro Economy: the Development of Industries and Services and Promotion of Investments in the Context of the Euro Area Transition" organized by the Strategic Institute for National Policies and Ideas.

Prof. Garabed Minassian said that the inclusion of an ill-prepared country in the euro area carries the risk of exacerbating the country’s economic problems rather than alleviating them automatically. In Minassian’s words, the difficulties of the process could reflect on the rising socio-economic tensions, and in such cases, a political party emerges to capitalize on public discontent with unforeseen adverse consequences in the medium and even in the long term.

He believes that the risks for Bulgaria related to the euro area are the low degree of real convergence of the country, weak innovativeness, and strong social stratification.

Financial expert Lyubomir Karimansky said that along with the political aspect, the technical implementation of Bulgaria’s euro area accession should also be considered. "There may be a favorable sentiment toward the euro area accession in Bulgaria, most political parties may share this sentiment, but let’s see whether we are technically prepared for the euro area," he said. Karimansky noted that there is no information on how businesses are being technically prepared and no public debate on how over 10,600 tonnes of coins will be pulled from circulation.

According to financial expert Levon Hampartzoumian, it is important how Bulgaria will participate in the transformation of Europe, adding that it had better be part of the decision-making and the euro area. He said that although the euro area has flaws, it would not be better if "for example, the Central Committee of the Chinese Communist Party determines the stability of our currency". In his words, the euro is a "very serious geopolitical anchor".

Financial expert Lyubomir Datsov said that discussing the matter, considering "that we are on the final stretch, is absolutely pointless from a governance point of view".