By mid-2018, Bulgaria will apply to join ERM 2 – the European Monetary Mechanism. This information was reported by the Minister of Finance V. Goranov.
ERM 2 is called the "Eurozone lounge," and the application is a clear indication of Bulgaria's intentions. According to Goranov, Bulgarian economic indicators meet all the necessary criteria for membership, and Bulgaria's accession does not contradict the interests of the Eurozone.
Former Finance Minister M. Radev told BTV that prices are not expected to rise in the country after the introduction of the euro. This is possible thanks to the 20-year existence of the Currency Board in the country and the pegging of the national currency to the euro.
The exact date of the introduction of the euro in Bulgaria is still unknown. It is expected that the decision on the country's accession to ERM 2 will be made after the government is formed in Germany. Negotiations are still underway with the European Central Bank and the Eurozone member states. It is known about the unofficial support for the decision from Germany and France, and in the fall, the President of the European Commission, Jean-Claude Juncker, said that considers Bulgaria ready for the introduction of the euro, and that he is ready to support this initiative.
"We are ready to apply to join ERM 2 by mid-2018. We understand that we can get an answer that will not satisfy us, but we believe that we must go this way," Goranov said. Recall that in mid-2017, the Minister of Finance stated that the official submission of the application is planned only if there is confidence that this initiative will be supported.
The decision, however, depends not so much on the European Commission as on the countries that make up the eurozone and the European Central Bank. Now the attitude to the admission of new members to the Eurozone is quite skeptical, there are fears that this will worsen financial discipline. Corruption in Bulgaria is also worrying. If the problems with it are successfully resolved, then we can hope for a positive decision regarding the accession of the country to ERM 2.
In any case, there is no reason to believe that the euro will be introduced in Bulgaria in the near future – this is a long and gradual process. Usually, it takes about three years from the moment of joining the ERM-2 to the full transition to the euro. So far, residents of the country are not very welcoming of such changes, fearing that prices, despite the assurances of economists, will rise.