Latest news with #PhilipLane
LeMonde
12 hours ago
- Business
- LeMonde
Bulgaria presses ahead toward euro adoption
Despite growing skepticism, Bulgarians are expected to adopt the euro on January 1, 2026. On Wednesday, June 4, the European Central Bank (ECB) gave its final approval for the country of 6.5 million people, located along the Black Sea and a member of the European Union (EU) since 2007, to join the eurozone. Presenting a positive Convergence Report, the Frankfurt-based institution found that all economic and legal criteria had been met, much to the satisfaction of the pro-European government in power in Sofia. Barring any surprises, the move to the single currency should be formally approved on July 8 at an Economic and Financial Affairs Council (ECOFIN) meeting of the eurozone's economy ministers. "This positive assessment of convergence paves the way for Bulgaria to (...) become the 21 st EU member state to join the euro area," said Philip Lane, a member of the ECB's Executive Board. The lev, the currency that has been in use since 1885 − currently worth 1.95 to the euro − is set to disappear. Business circles and the government of Prime Minister Rosen Zhelyazkov, a conservative, have promised that adopting the euro will boost Bulgaria's economy, currently the weakest in the EU. However, the adoption has sparked growing concern among Bulgarians, who fear that companies will use the currency switch to raise prices, potentially reigniting the high inflation seen after the outbreak of war in Ukraine.
Arab News
17 hours ago
- Business
- Arab News
EU gives Bulgaria green light to adopt euro from start of 2026
'Today, the European Commission concluded that Bulgaria is ready to adopt the euro as of 1 January 2026,' the Commission saidBulgaria has been striving to switch its lev currency to the euro ever since it joined the European Union in 2007BRUSSELS: The European Commission and the European Central Bank gave Bulgaria the go-ahead on Wednesday to adopt the euro currency from the start of 2026, making Bulgaria the 21st country to join the single currency a 'convergence report' describing how Bulgaria's economy dovetails with the rest of the euro zone, the Commission said Bulgaria met the formal criteria needed to adopt the currency now used by 347 million Europeans in 20 countries.'Today, the European Commission concluded that Bulgaria is ready to adopt the euro as of 1 January 2026 – a key milestone that would make it the twenty-first Member State to join the euro area,' the Commission said in a Commission also looked at whether Bulgaria's economy and markets are integrated with the rest of the EU, as well as the trends in the country's balance of a separate report, the ECB also said Bulgaria was ready.'I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed,' ECB Executive Board Member Philip Lane said in a has been striving to switch its lev currency to the euro ever since it joined the European Union in 2007. But after such a long wait, many Bulgarians have lost the initial enthusiasm with 50 percent now skeptical about the euro, according to a Eurobarometer poll in May. Some Bulgarians fear the currency switch will drive up prices.'Ensuring price transparency and combating abusive price increases will require a special effort,' EU Economic Commissioner Valdis Dombrovskis told a news conference.'Previous practices and data from other euro area countries demonstrate that this is perfectly achievable, with price increases resulting from previous changeovers having been minimal,' he a member of the euro zone, apart from using euro notes and coins, also means a seat at the European Central Bank's rate-setting Governing positive recommendation from the EU executive arm means that EU leaders will have to endorse it later in June. EU finance ministers will then fix the conversion exchange rate for the Bulgarian lev into the euro in July, leaving the rest of the year for the country to technically prepare for the THE CRITERIATo get the positive recommendation, Bulgaria had to meet the inflation criterion, which says that the euro-candidate cannot have consumer inflation higher than 1.5 percentage points above the three best EU April, the best performers were France with 0.9 percent, Cyprus with 1.4 percent and Denmark with 1.5 percent, which put Bulgaria with its 2.8 percent just within the euro candidate country also cannot be under the EU's disciplinary budget procedure for running a deficit in excess of 3 percent of GDP. Bulgaria meets this criterion with a budget deficit of 3.0 percent in 2024 and 2.8 percent expected in country's public debt of 24.1 percent of GDP in 2024 and 25.1 percent expected in 2025 is well below the maximum level of 60 percent, and its long-term interest rate on bonds is well within the 2 percentage point margin above the rate at which the three best inflation performers Bulgaria had to prove it had a stable exchange rate by staying within a 15 percent margin on either side of a central parity rate in the Exchange Rate Mechanism was easily done because Bulgaria has been running a currency board that fixed the lev to the euro at 1.95583 since the start of the euro currency in euro adoption will come three years after the last euro zone expansion, when Croatia joined the single currency grouping at the start of accession of Bulgaria into the euro zone will leave only six of the 27 EU countries outside the single currency area: Sweden, Poland, Czech Republic, Hungary, Romania and of them have any immediate plans to adopt the euro either for political or because they do not meet the required economic criteria.
DW
19 hours ago
- Business
- DW
EU gives green light for Bulgaria to join the euro – DW – 06/04/2025
The EU has approved Bulgaria's readiness to adopt the euro, clearing the way for a 2026 switch. The move follows inflation reforms and marks a milestone in the country's EU integration. The European Commission on Wednesday approved Bulgaria's readiness to adopt the euro, saying the country was sufficiently ready to switch to the common currency. A commission report found that, after successfully reducing inflation, Bulgaria was in a position to become the 21st European Union country to use the euro. When will Bulgaria adopt the euro? Bulgaria, an EU member since 2007, had initially aimed to adopt the euro in 2024 but delayed the move due to an inflation rate of 9.5% at the time. The European Commission now expects Bulgarian inflation to ease to 3.6% this year and drop to 1.8% by 2026. The latest decision confirms that Bulgaria meets the necessary economic criteria to adopt the common currency on January 1, 2026. How do Bulgarians feel about possibly joining the eurozone? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The European Central Bank (ECB) also assessed Bulgaria's economy as sufficiently prepared. "The government in Sofia has shown tremendous commitment to implementing the necessary changes," said ECB Chief Economist Philip Lane. Why does Bulgaria want to be part of the euro? Adopting the euro gives Bulgaria access to the European Central Bank's monetary policy and financial backstops, reducing the risk of currency crises. It lowers interest rates on government and business loans and eliminates currency exchange risk with eurozone countries, boosting investor confidence. Using the euro simplifies cross-border transactions, making trade and tourism with other EU countries easier. "Congratulations, Bulgaria!" said European Commission President Ursula von der Leyen. "The euro is a tangible symbol of European strength and unity." "Thanks to the euro, Bulgaria's economy will become stronger, with more trade with euro area partners, foreign direct investment, access to finance, quality jobs and real incomes," she said. Bulgarian Prime Minister Rossen Jeliazkov said the EU's approval confirmed the progress made by the Balkan country. "A remarkable day. Another step forward on Bulgaria's path to the euro... This follows years of reforms, commitment and alignment with our European partners," he said in a post on X. Is everybody happy about joining the eurozone? The push to adopt the euro has sparked a significant backlash in Bulgaria. Protests have taken place in Sofia and other cities, and recent surveys indicate that nearly half of those polled oppose joining the eurozone. Some 1,000 people demonstrated Wednesday outside the National Assembly in central Sofia, protesting the planned change. Holding signs that read "Preserve the Bulgarian lev," "No to the euro," and "The future belongs to sovereign states," the crowd voiced concern that joining the eurozone would erode national sovereignty and economic stability. Pro-Russian opposition party Vazrazhdane, which has led several similar rallies in recent months, organized the demonstration. Protesters against the change gathered in Sofia on the day the euro green light was announced Image: BGNES "If Bulgaria joins the eurozone, it will be like boarding the Titanic," said Nikolai Ivanov, a retired senior official, during another recent protest, reflecting fears that euro adoption could harm savings and dent the Bulgarian economy. What is Bulgaria's currency right now? Bulgaria's national currency, the lev, has served as the country's official tender since 1881. At a value of €0.51 ($0.58) is subdivided into 100 stotinki. The name "lev" translates to "lion" in old Bulgarian, reflecting a traditional symbol of national pride. The lev has undergone three major revaluations, most recently in 1999, when 1 new lev replaced 1,000 old leva. Since then, the lev has been pegged to the euro at a fixed exchange rate of 1.95583 BGN to 1 EUR under a currency board system. Fellow EU countries and the European Parliament must still approve Bulgaria's accession to the eurozone, though approval is widely expected. Bulgaria's path to joining the eurozone has been marked by political instability, with the country holding seven elections in just three years — the most recent in October 2024. Despite the turbulence, Bulgaria has made steady efforts to align its economy with eurozone standards. With a population of 6.4 million, it remains the European Union's poorest member. Under EU treaties, all member states except Denmark are required to adopt the euro once they meet the necessary criteria. Bulgaria is one of six EU countries yet to do so, alongside Poland, Romania, Sweden, the Czech Republic, and Hungary. Edited by: Wesley Rahn
Yahoo
20 hours ago
- Business
- Yahoo
Bulgaria to adopt the euro as ECB and European Commission give green light
Bulgaria will join the eurozone at the start of next year after clearing a series of economic hurdles, securing approval from the European Central Bank and the European Commission on Wednesday. "Today's report is a historic moment for Bulgaria, the euro area and the European Union," said EU economy chief Valdis Dombrovskis. ECB Executive Board Member Philip Lane noted: "I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed." Since it joined the EU in 2007, Bulgaria has been seeking to switch its current currency, the lev, to the euro — although persistent inflation and political unrest have stalled progress. Last year, Bulgaria's accession to the eurozone was pushed back as the country failed to contain price pressures. These shot up during Europe's energy crisis following Russia's invasion of Ukraine, although annual CPI cooled to 3.5% in April, close to the EU's 3% target. The ECB and the Commission are now satisfied that economic criteria are fulfilled, notably relating to the public debt and deficit, inflation, interest rates and the exchange rate. Bulgaria's accession must now be approved by euro area finance ministers, with the final go-ahead expected on 8 July. Wednesday's breakthrough came after a wave of protests in Bulgaria against the adoption of the euro. Disinformation campaigns from home and abroad have made certain groups fearful of the change, notably pushing narratives that the euro will worsen poverty and stoke inflation. Bulgarian President Rumen Radev encouraged the anti-euro voices by proposing earlier this month a referendum on the currency. The proposal was rejected by the pro-European majority in parliament, which accused Radev of acting in favour of Moscow with his last-minute attempt to sabotage the euro adoption. Countries that have previously joined the eurozone have seen modest inflationary spikes. Even so, eurozone membership also offers a series of benefits as it can reduce borrowing costs, attract foreign investment, and facilitate cross-border trade. A position in the eurozone would also allow Bulgaria to have a greater say over the ECB's monetary policy trajectory. Croatia was the last country to join the eurozone in 2023.
Euronews
21 hours ago
- Business
- Euronews
Bulgaria to adopt the euro as ECB and EU Commission give green light
Bulgaria will join the eurozone at the start of next year after clearing a series of economic hurdles, securing approval from the European Central Bank and the European Commission on Wednesday. "Today's report is a historic moment for Bulgaria, the euro area and the European Union," said EU economy chief Valdis Dombrovskis. ECB Executive Board Member Philip Lane noted: "I wish to congratulate Bulgaria on its tremendous dedication to making the adjustments needed." Since it joined the EU in 2007, Bulgaria has been seeking to switch its current currency, the lev, to the euro — although persistent inflation and political unrest have stalled progress. Last year, Bulgaria's accession to the eurozone was pushed back as the country failed to contain price pressures. These shot up during Europe's energy crisis following Russia's invasion of Ukraine, although annual CPI cooled to 3.5% in April, close to the EU's 3% target. The ECB and the Commission are now satisfied that economic criteria are fulfilled, notably relating to the public debt and deficit, inflation, interest rates and the exchange rate. Bulgaria's accession must now be approved by euro area finance ministers, with the final go-ahead expected on 8 July. Wednesday's breakthrough came after a wave of protests in Bulgaria against the adoption of the euro. Disinformation campaigns from home and abroad have made certain groups fearful of the change, notably pushing narratives that the euro will worsen poverty and stoke inflation. Bulgarian President Rumen Radev encouraged the anti-euro voices by proposing earlier this month a referendum on the currency. The proposal was rejected by the pro-European majority in parliament, which accused Radev of acting in favour of Moscow with his last-minute attempt to sabotage the euro adoption. Countries that have previously joined the eurozone have seen modest inflationary spikes. Even so, eurozone membership also offers a series of benefits as it reduces borrowing costs, attracts foreign investment, and facilitates cross-border trade. A position in the eurozone would also allow Bulgaria to have a greater say over the ECB's monetary policy trajectory. Croatia was the last country to join the eurozone in 2023. Neurological conditions affected more than 3 billion people worldwide in 2021, according to a major study published in The Lancet in 2024. These conditions impact the nervous system and comprise a wide variety of disorders, including epilepsy, Alzheimer's disease, Parkinson's disease, dementia and many others. Today, neurological diseases are the leading cause of illness and disability worldwide, and beyond the toll they take on patients and their loved ones, they also impose a significant economic burden. According to another study published in The Lancet, brain disorders are projected to cost the global economy 16 trillion dollars between 2010 and 2030, a figure largely driven by the early onset of these conditions and the resulting long-term loss of productivity. Given the need for research and treatment of brain disorders, some companies are investing in this area to advance our understanding of the brain. Among the most high-profile is Neuralink, founded by Elon Musk in 2016. However, Europe has also emerged as a powerhouse in neurotechnology. A notable example is the Spanish company Neuroelectrics, launched by Ana Maiques and Giulio Ruffini in 2011. Over the years, Neuroelectrics has expanded from its European roots to establish a presence in the United States, becoming an international leader in the field. Ana Maiques, CEO of Neuroelectrics, joined My Wildest Prediction to share her boldest insights and vision for the future of brain technology. My Wildest Prediction is a podcast series from Euronews Businesswhere we dare to imagine the future with business and tech visionaries. In this episode, Tom Goodwin talks to Ana Maiques, CEO and Co-Founder of Neuroelectrics. 'My wildest prediction is that neurotechnology is going to impact our daily lives in ways we cannot even imagine,' Ana Maiques told Euronews Business. Maiques clarified that neurotechnology tools should and will not be used to enhance individual traits such as intelligence or reverse ageing. However, she believes these tools will be applied to treat medical conditions, broaden people's experience of reality and strengthen our general understanding of how the brain works. 'A lot of people approach us! (...) We have a paper written with Refik Anadol where we monitored the impact on the visitors' brains of his AI-generated sculptures. Now, we are talking with Michelin-star chefs who want to study the impact of food on the brain from a scientific perspective,' she explained. Maiques acknowledged the fears some people have about using electricity in the brain but emphasised that much of this concern stems from a lack of understanding of the real, positive impact neurotechnology can have. Unlike Neuralink, which develops in-brain implants, Neuroeletrics takes a non–invasive approach, using external tools to monitor and interact with the brain. Neuroelectrics' standout product is the Neoprane Headcap. The cap features electrodes connected to a wireless module located in the back. These electrodes can both monitor the brain activity and deliver electrical stimulation. This tool can help diagnose sleep disorders, epilepsy, and other neurological conditions. It is especially useful in hospital settings where electroencephalogram (EEG) equipment may not be available or where technicians are not present. To develop these tools, Neuroelectrics has been using machine learning and AI for years. 'There is no way we can, as humans, decode the brain without the help of these kinds of tools,' Ana Maiques said. The CEO noted that advancements in AI could lead to the potential modelling of the brain, raising many ethical and scientific questions. However, she emphasised the importance of continued experimentation, as achieving a complete scientific understanding of the brain remains highly complex.
