site.btaFinance Minister Expects Sharing in Euro Currency Management to Bring Great Benefits

By adopting the euro, Bulgaria will be able for the second time in its history to share in the control of a globally important currency, to use it and to work with it, Finance Minister Assen Vassilev told a briefing in Sofia on Friday, emerging from talks with the visiting President of the Eurogroup, Paschal Donohoe.

Vassilev said there were short periods when Bulgaria tried to manage its currency on its own, but they ended in hyperinflation. He noted: "The stability which our currency peg to the euro gives us at present brings extraordinary benefits for the Bulgarian economy. Our economy has been developing steadily over the last 27 years. It will be even much better when we begin to participate in the making of decisions and the management of this resilient world currency."

Taking a journalist's question, the Finance Minister said the state budget deficit in 2023 was 2.2% and is expected to remain within the limits of the Maastricht criteria in 2024. "Whatever laws Parliament adopts, they will not affect this year's public expenditures. They might affect next year's expenditures, but this is something to be considered when we get to make the budget scheme for next year. Bulgaria meets the eurozone membership criteria, except for inflation. We were below the inflation reference value in January and February, which means it is a matter of time to cope with average annual inflation," Vassilev argued.

He described the Eurogroup president as one of the staunchest supporters of Bulgaria's prompt entry to the euro area. "We are working remarkably well with him, the European Commission and the European Central Bank for attaining the strategic objective [of joining the euro area] in 2025," Vassilev said. Donohoe confirmed the feasibility of the goal.