site.btaFiscal Council To Approve National Macro Framework after Bulgaria Joins Euro Area

After Bulgaria joins the eurozone, the macroeconomic forecast prepared by the Finance Ministry should be approved by Bulgaria's Fiscal Council. With regard to the requirements to be observed in the development of macroeconomic and budgetary forecasts, European legislation does not differentiate between euro area and non-euro area countries. The Stability and Growth Pact (SGP) provides for stricter monitoring and control of euro area countries' draft budgets, said the Finance Ministry in response to a BTA question regarding the preparations of the state budget and Bulgaria's plans to join the euro area.

At least once a year, member states and the European Commission should hold a technical dialogue on the assumptions underlying the macroeconomic and budgetary forecasts, the Ministry said.

The coordination of economic and fiscal policies in the European Union is based on the rules of the Stability and Growth Pact, which is the framework for economic governance in the Member States. The pact contains provisions against excessive budget deficits and unsustainable fiscal policy, and after joining the euro area Bulgaria will be subject to stricter monitoring and control than EU countries outside the euro area, especially with regard to its draft budget. From the date of its euro area membership, Bulgaria will follow the budgetary cycle applicable to all countries that have adopted the euro. According to the SGP, euro area countries should submit their draft budgets for the following year to the European Commission by 15 October, and the Commission should give its opinion by November 30 at the latest. If the Commission finds serious non-compliance with the obligations stemming from the Stability and Growth Pact or insufficient addressing of the specific recommendations addressed to member states, it will ask the country concerned to submit a revised budget plan, the Ministry explains.