Latest news with #RosenZhelyazkov
Reuters
4 days ago
- Business
- Reuters
Eurozone accession to bring economic growth, Bulgaria PM says
BELGRADE, June 5 (Reuters) - Bulgaria's accession to the euro zone as of January next year will bring higher economic growth and higher living standards for the people, Prime Minister Rosen Zhelyazkov said on Thursday. On Wednesday, the European Commission approved Bulgaria's request to adopt the euro currency as of January next year. "The accession to the euro area will guarantee better growth, better purchasing power for the people, this means better convergence with the European living standards," Zhelyazkov said after meeting European Union Commissioner for the Economy Valdis Dombrovskis in Sofia. Bulgaria, a Balkan country bordering the Black Sea, joined the European Union in 2007 and it is set to become the 21st country to adopt the euro on January 1, 2026. Many fear that the accession will bring price hikes as it was the case with some other countries. Zhelyazkov said that he presented Dombrovskis the measures the government was taking to raise awareness and transparency and also to protect vulnerable groups and the elderly who fear the cost of living will rise with the introduction of the euro. He said there will be no tight deadline and no commission fees for those who want to convert their savings from the lev to the euro. "We will avoid the hastiness," Zhelyazkov said. The conversion of the local currency into euros, which will be done at a fixed exchange rate, will be supported by market players and overseen by regulators who will monitor market prices, he said. With an average monthly salary of 2,443 leva ($1,420.76), Bulgaria is the poorest country in the European Union.
LeMonde
5 days 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.
CNBC
5 days ago
- Business
- CNBC
The euro zone is ready for a new member: Bulgaria
Bulgaria on Wednesday secured the green light to join the euro zone, meaning the bloc could soon grow from 20 to 21 members. A European Central Bank report assessed that the country met the requirements to adopt the single currency starting next year. "This positive assessment of convergence paves the way for Bulgaria to introduce the euro as of 1 January 2026 and become the 21st EU Member State to join the euro area," Philip Lane, member of the ECB Executive Board, said in a press release. This marks a shift from last year's report, which concluded that Sofia did not meet the so-called convergence criteria to adopt the currency on the grounds that the country's inflation rate was too high. One of the obstacles to cross was inflation. Bulgaria's harmonized consumer price index — which is comparable across European countries — came in at 2.8% in April according to statistics agency Eurostat. Price stability is just one of the requirements a country needs to fulfil in order to join the euro zone, and thereby the European Central Bank. Others include limitations on the size of a nation's government deficit and debt ratio, its average nominal long-term interest rate and its exchange rate stability. There is also a legal requirement that covers central bank independence. Bulgaria joined the European Union in 2007 and committed at the time to also join the euro zone and relinquish the Bulgarian lev as its official currency. One euro is equivalent to 1.96 lev, a rate set when Bulgaria became part of the board which anchors the currencies. There are mixed attitudes about joining the euro within Bulgaria. A survey published last year by the EU suggested 49% of the public was in favor of the becoming part of the euro bloc. Political opinion is also split, with several nationalist parties and the country's president advocating against it, while Prime Minister Rosen Zhelyazkov is supportive.
Straits Times
23-05-2025
- Business
- Straits Times
Bulgaria on track to win EU approval to join the euro in 2026
Bulgaria would be the second country to adopt the euro in the past decade. PHOTO: REUTERS Bulgaria on track to win EU approval to join the euro in 2026 Bulgaria is close to clearing a major hurdle toward euro adoption, putting the Black Sea nation on course to join the currency area i n 2026 . The minority government of Prime Minister Rosen Zhelyazkov is awaiting an assessment of its readiness on June 4, when the European Commission and the European Central Bank (ECB) release their convergence reports. Based on the latest forecasts from the European Union's executive, Brussels is increasingly confident that Bulgaria will meet the criteria for fiscal prudence and currency stability, according to EU officials familiar with the matter. A positive assessment may open the path for adopting the euro from the beginning of 2026. The decision has not been finalised and could still change, but officials are optimistic the assessment will be a positive one, especially given Bulgaria's recent progress on inflation. Once that happens, EU leaders would give their blessing at a summit in June, people familiar with the matter said. The final conversion rate between the lev and the euro would be set by the bloc's Finance Ministers – something that could happen as early as July. A European Commission spokesperson told Bloomberg that the executive arm is now concluding its assessment of Bulgaria's convergence criteria in coordination with the ECB, and intends to adopt its convergence report in early June. They did not comment on possible results of that assessment. A spokesperson for the ECB declined to comment. Adopting the euro would be a rare victory for Bulgaria's government, whose predecessors have all argued that joining the single European currency will help the bloc's poorest country close the gap with richer member states. But their efforts had faced resistance from euro-area leaders, who were skeptical of approving new members after Greece's sovereign debt crisis and a series of money-laundering scandals in the Baltics. Still, governments and businesses have argued euro adoption will help Bulgaria get closer to the EU's inner circle of decision makers as the bloc seeks to demonstrate unity at a time of geopolitical turbulence. It would also lower transaction costs and may help attract foreign investment, which for years has been suffering due to political instability and the country's rule of law troubles – Transparency International ranks it as one of the EU's most corrupt. Bulgaria would be the second country to adopt the euro in the past decade and one of only a handful to do so since the start of the debt turmoil that nearly caused the currency zone to implode. The last economy to join was Croatia in 2023. Other EU nations have been less eager to join, opting instead to retain their independent monetary policy and the greater latitude that offers in managing a crisis. With the lev pegged to the euro for more than quarter of a century under a currency board agreement – a tool the country used to escape a hyperinflation crisis in the late 1990s – Bulgaria does not have an active monetary policy, and the switch is unlikely to have major implications. With a history of narrow deficits and one of the EU's lowest debt-to-GDP levels, Bulgaria has for years fulfilled most formal criteria, and has now managed to bring inflation within the target limits after Russia's full-scale invasion of Ukraine triggered a spike in prices. While the majority of political parties in Parliament back the euro adoption, inflation fears have divided Bulgarians. Only a fifth of them approve the 2026 target date, according to a poll published on May 22 . 'We're familiar with what's being done with regard to the so-called convergence reports,' Bulgarian Central Bank Governor Dimitar Radev told reporters in the city of Pleven on May 20 . 'The assessment is positive,' he said. 'Our assessment is that we're completely ready.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
23-05-2025
- Business
- Bloomberg
Bulgaria On Track to Win EU Approval to Join the Euro Next Year
Bulgaria is close to clearing a major hurdle toward euro adoption, putting the Black Sea nation on course to join the currency area next year. The minority government of Prime Minister Rosen Zhelyazkov is awaiting an assessment of its readiness on June 4, when the European Commission and the European Central Bank release their convergence reports.
