Bulgaria Not ready to deploy EUR On January 1, 2025, because it does not meet one of the four criteria, Eurozone entry- inflation This was highlighted in a European Commission report adopted on Wednesday.
A European Commission spokesman said: Bulgaria I don't currently meet all the eligibility requirements EurozoneThe Committee, Bulgaria And we welcome your continued efforts towards that ambitious goal. EUR Once all criteria are met. Bulgaria Although there is currently no set start date, if it is determined that all necessary conditions are met, an Interim Assessment Report can be requested.
Acting Finance Minister Lyudmila Petkova suggested last week that an ad-hoc evaluation could be requested towards the end of the year.
In its report, the European Commission noted: Bulgaria It meets the requirements for budget deficit, exchange rate stability and interest rates. Furthermore, Bulgarian legislation is reported to be in line with EU legislation regarding the Euro.
The main problem is inflation. BulgariaAverage monthly inflation In the past 12 months Eurozone The criteria are: inflation It should not exceed 1.5% of the three best performing indicators. Eurozone By country, the figure is 4.1%. Bulgariaof inflation That's 1% more than that.
The report predicts: Bulgariaof inflation It will remain at a high level for the next few months but could approach the required level by late 2024 or early 2025. Bulgariaof inflation Significantly increasing Eurozone The average for the past two years is inflation At a rate of 10.9% Eurozone 4% increase.
The European Commission, Bulgariaof inflation It plans to raise taxes in 2024, but warns that rising wages and the elimination of tax cuts for the food and beverage industry could cause prices to rise again in the medium term. inflation The outlook will depend on the management of price expectations, the productivity-wage relationship, and the functioning of product and service markets.
The report states: Bulgaria Implementing recovery and resilience plans, particularly reforms related to transitioning away from fossil fuels and improving energy efficiency, could improve the economy, but significant delays in implementation of plans highlight the growing risk that they will not be realized by 2026.
The criteria are EUR Recruitment includes retention inflation interest rates not more than 1.5 percentage points higher than those of the three best-performing member states; budget stability; exchange rate stability; and long-term interest rates not more than 2 percentage points higher than those of the three best-performing member states in price stability.
The European Commission stated: Bulgaria Remaining EUR Hiring requirements. BulgariaThe report notes that the state's fiscal framework is sound, but that the complexity of public investment management and deficiencies in the state's fiscal plan are a problem, even as interest rates rise in 2022. BulgariaThe exchange rate remains 1.5% below the benchmark. EUR Stable through the currency board.
The Committee also noted the need to take into account factors such as the balance of payments, labour market integration and financial market integration in its assessment, and to monitor house price growth, which is estimated to be about 8 percentage points overvalued.
The Commission's report also assessed the preparedness of the Czech Republic, Poland, Hungary, Romania and Sweden, none of which met the four criteria. Sweden inflation Rate requirements, Bulgaria Sweden meets the budget deficit requirements Bulgaria Meets exchange rate requirements. Bulgariathe Czech Republic and Sweden meet the long-term interest rate requirement. Bulgaria Laws have been developed to meet the needs of euro use.
