site.btaFinance Minister Vassilev on Euro Adoption Benefits in Die Welt Interview

"The main motive for introducing the euro in Bulgaria is that our domestic economy saves a lot of money through it. Today more than 60% of our trade is with other European countries," Finance Minister Assen Vassilev was quoted by his Ministry in a Friday press release as having said in an interview for Die Welt. 

On the other hand, the two different currencies have so far brought high transaction costs, which account for about 1% of Bulgaria's annual GDP, just under one billion euro," Vassilev explained.

He is optimistic that Bulgaria will become the next eurozone country on January 1, 2025. This country's national debt of 22% of GDP is the second lowest in the entire EU and far below the maximum permissible level of 60%. Bulgaria also has no problem with the 3% deficit target set in the Maastricht criteria (Convergence criteria, based on economic indicators, that EU member states must fulfil to enter the euro zone and that they must continue to respect once entered). "I see no reason for delay. The new euro coins are already minted and the banks' information systems are ready. According to opinion polls, the majority of Bulgarians support (euro area) accession. Support in the business community is even greater. But it is not up to us. This is a decision of the European Commission and the European Central Bank", stressed Assen Vassilev.

"Our accession to the euro area is long overdue. Since 1997, the value of the lev has been pegged to the German mark and later to the euro. But we still don't have a seat at the decision-making table. With Bulgaria joining the eurozone, we are regaining a certain degree of control over our currency," the Finance Minister told Die Welt. 

Asked about Bulgaria's economic stability of this country, Vassilev noted that from the very beginning the increase in wages has been at the core of the economic policy efforts. "We provide higher wages and employers receive state aid for investments that increase the productivity of the economy. This pays off in many ways. For one, tax revenues are increased. On the other hand, despite the sharp rise in wages, unemployment is falling."