April 19 (SeeNews) – Bulgaria's entry into the euro zone, scheduled for January 1, 2025, could be postponed until the end of the year if the country fails to meet its inflation target in June, the central government says. Bank Governor Dimitar Radev told state news agency BTA.
“This is a possible scenario, and at this stage it is a more likely scenario,” Radev said in an interview with BTA on Thursday, as reported by the Bulgarian National Bank (BNB).
Bulgaria's annual inflation rate, based on the Harmonized Index of Consumer Prices (HICP), slowed to 3.1% in March from 3.5% in February, the National Statistical Institute (NSI) said earlier this week. According to the European Central Bank (ECB) website, to qualify for euro zone membership, an EU member state's inflation rate must not exceed the inflation rate of its three best-performing member states by more than 1.5 percentage points. That's what it means.
Radev pointed out that Bulgaria's budget needs to be counter-cyclical to combat inflation, which is not the case at the moment.
“Global experience and our own experience shows that this is best achieved through effective cost management and control measures,” Radev added.
Radev said BNB and the banking sector are at an advanced stage of preparation for the eurozone, with continued investment and progress in institutional frameworks, capacity and logistics, but there is still work to be done. Ta.
The ECB and the European Commission publish a convergence report at least once every two years, or at the request of an EU member state wishing to join the euro area, to monitor each country's progress towards euro adoption. The final report will be published in June 2022.
